Erate

Erate, commonly written as E-Rate, refers to the Schools and Libraries Program of the Universal Service Administrative Company (USAC) established to help U.S. schools and libraries obtain affordable telecommunications and internet access. It operates under the oversight of the Federal Communications Commission (FCC) and is funded through the Universal Service Fund contributed by telecommunications providers.

The program provides discounts on eligible services and equipment for eligible entities, including public and eligible private K-12 schools and libraries. Discounts vary by category and by the economic and rural/urban status of the applicant, typically ranging from lower levels for more affluent or urban areas to higher levels for rural or high-poverty districts. Category One covers basic telecommunications services and internet access, while Category Two covers internal connections and related equipment, such as networking gear and wifi infrastructure, along with maintenance.

Funding and administration are handled by USAC, which processes applications, reviews eligibility, and disburses funds as service discounts rather than direct payments. The program is funded through the Universal Service Fund, with costs ultimately borne by telecommunications carriers and, in practice, pass-through to consumers.

Application and eligibility processes require competitive bidding and standard forms. Applicants file Form 470 to solicit bids and Form 471 to request funding for specific services, followed by compliance reviews and invoicing. The E-Rate program has evolved since its 1996 inception, most notably through modernization measures that expanded access to broadband and introduced district-wide Category Two budgets, while maintaining safeguards against misuse. Critics point to administrative complexity and fraud risk, while supporters emphasize improved school and library connectivity.