Schools and Libraries (E-Rate)

Step 4 Application Review

Updated September 2015

The 30% Rule

Under the 30% Rule, if 30 percent or more of the services included on a single funding request are ineligible, the funding request will be denied.

Each FCC Form 471 funding request is identified by a Funding Request Number (FRN) assigned by USAC's online system. Only eligible products and services should be included in an FRN. If services to be delivered include both eligible and ineligible components, applicants must subtract the ineligible costs from their FRNs.

Removing Ineligible Items from an FRN

If USAC finds during application review that an applicant has included ineligible products and services in an FRN, USAC will contact the applicant to determine the exact cost associated with the ineligible items. The applicant can request that USAC either:

  1. Remove the ineligible items from the FRN or
  2. Create a new FRN and move the ineligible items from the original FRN to the new FRN.

If the applicant does not respond, USAC will remove the ineligible items from the funding request.