FAQs

A library includes:

• A public library
• A public elementary school or secondary school library
• A Tribal library
• An academic library
• A research library, one that makes publicly available library services and material suitable for scholarly research and not otherwise available to the public and is not an integral part of an institution of higher education
• A private library, but only if the state in which such private library is located determines that the library should be considered a library for purposes of this definition

An E-Rate eligible library must be eligible for assistance from a state library administrative agency under the Library Services and Technology Act (LSTA), as amended by the Museum and Library Services Act of 2018 (20 U.S.C. § 9122).

The FCC amended sections 54.500 and 54.501(b)(1) of the E-Rate program rules to include Tribal library in the definition of library in the Tribal Library Order (FCC 22-8) adopted on January 27, 2022, and to clarify that Tribal libraries are by statute eligible for support from State library administrative agencies under the LSTA, and therefore are eligible for support from the E-Rate program. A Tribal Library must be able to demonstrate the three basic characteristics of a library

• Regularly scheduled hours
• Staff
• A collection of materials for library users.

Libraries must also have a budget that is completely separate from any school, including but not limited to, elementary and secondary schools, unless that school is a Tribal College or University.

You can demonstrate your eligibility by providing documentation from an authorizing Tribal government entity (for example, through a Tribal Resolution), as well as documentation that shows that the Tribal library has the three basic characteristics of a library, including regular hours, staff, and materials available to library users. The characteristics of the Tribal library may also be attested to with a signed letter from a state library administrative agency.

• Commonly requested Category Two (C2) equipment and services include:
  •  Cabling 
  • Switches
  • Licenses
  • Wi-Fi Access points
• Commonly requested Category One (C1) equipment and services include:
  • Fiber
  • Ethernet
  • Internet access

A small library might seek funding to upgrade its Wi-Fi network equipment and purchase monthly service from its local service provider.

A larger library system might seek funding for a wide area network that shares data between the library buildings.

In cases where it is the most cost-effective option, libraries and library consortia might seek funding to build the broadband infrastructure themselves (a practice known as “self-provisioning”) or for special construction for services over a third-party’s network to receive much-needed connectivity to unserved libraries.

A library must be able to determine its own technological needs. However, the Toward Gigabit Libraries Toolkit, is a free tool funded through a grant by the Institute of Museums and Libraries Services (IMLS), that is designed for small, rural and Tribal libraries with limited IT support.  The toolkit can help library staff learn about their library’s broadband connection and services and be used to help determine the library’s IT needs that may be eligible to be funded through the E-Rate program.  The E-Rate program funds Internet access service and equipment needed to have Wi-Fi access throughout the library, but does not fund end-user equipment, for example, computers, laptops, tablet, microphones, printers, etc.

The Commission adopted changes to the E-Rate program for libraries in a July 2023 Order (FCC 23-56), including:

• All Libraries:  
  • Library applicants seeking E-Rate support for category two (C2) equipment or services that total a pre-discounted amount of $3,600 or less in a single funding year are now exempt from competitive bidding.
  • Cost allocation to remove the costs associated with the use of shared equipment in non-instructional facilities (NIFs) and related-library administrative buildings is no longer required.
  • If an applicant selected the most cost-effective Internet service offering to meet its eligible needs and 90% or more of an applicant’s request for Internet service is for eligible purposes; there is a presumption that the remaining amount is ancillary and does not require cost allocation.
  • Applicants and service providers will also receive a reminder through the E-Rate Productivity Center (EPC), three weeks prior to the invoice filing deadline with instructions on how to file for reimbursement and how to file for a 120-day invoice filing deadline extension for each funding request (FRN) where no requests for reimbursement has been submitted.

• Tribal Libraries:
  • Tribal College and University (TCU) libraries may now apply for and receive E-Rate support for their library, provided they are also serving as a public library in their community.
  • The maximum discount rate for category two services for Tribal libraries increased to 90%, and the category two funding floor increased to $55,000 for Tribal libraries.
  • A formal definition of “Tribal” has been adopted for use in the E-Rate program.

The discount for libraries is based on the discount rate of the public school district in which the main branch is located. To determine the National School Lunch Program (NSLP) eligibility rate for a library system:

• Determine the total number of students eligible for the NSLP in the public school district in which the main branch or main administrative office of the library is located.
• Determine the total number of students in that school district. 
• Divide the first number by the second number to get the percentage of students eligible for NSLP in that school district.
• Using this percentage and the urban or rural status of the library system, find the appropriate category one (C1) and C2 discount in the discount matrix.
• Go to the E-Rate Calculating Discounts page for more information.

For existing applicants, USAC has updated the urban-rural designation of E-Rate schools and libraries based on the 2020 Census data to prepare for the upcoming funding year 2024.  USAC has contacted the small portion of applicants that saw a change in their urban-rural status. Depending on your discount level and percentage of entities rural-urban, there may be no impact on your discount rate.

Existing applicants can use the new E-Rate Entity Search Tool on USAC’s Open Data website to find information about their urban or rural status. Watch the quick start videos to learn about how to use it.

New applicants can use this urban rural status guide to find the status of their library.

Existing applicants can use the new E-Rate Entity Search Tool on USAC’s Open Data website to find information about their urban or rural status. Watch the quick start videos to learn about how to use it.

New applicants can use this urban rural status guide to find the status of their library.

The NSLP eligibility rate is determined by the total number of students eligible for the NSLP in the public school district in which the main branch or main administrative office of the library is located. Go to the E-Rate Calculating Discounts page for more information. 

All E-Rate program participants – applicants, service providers and consortia – are required to maintain documentation that demonstrates compliance with the statutory or regulatory requirements for all E-Rate program purchases of service and equipment for a period of 10 years after the latter of the last day of the applicable funding year or the service delivery deadline for the funding request. Examples of such documentation include competitive bidding materials, program forms, contracts, and asset and inventory records of equipment purchased as components of supported Category Two services.

The FCC first established document retention requirements for school and library applicants and service providers in the Fifth Report and Order (FCC 04-190) and provided an illustrative list of examples of the types of documents that should be retained. As provided in the order, you should retain discount eligibility calculation documentation such as supporting worksheets or reports used to populate the C2 budget and discount calculation information:

• Library square footage documentation/maps,

• Copies of any policies and procedures related to the discount

• Calculation process or methodology (i.e., National School Lunch Program (NSLP), surveys, Provision 1, 2, or 3, etc.)

• Libraries (including Tribal libraries) – Documentation of your square footage for the Funding Year

You may visit the Document Retention page on the E-Rate site for more information and the E-Rate Program List of Documents to Retain for Audits and to Show Compliance with Program Rules.

Funding from states, tribal governments, or federal agencies can be used by the applicant to pay their non-discounted share, except that the total support from federal universal service and the other organization may not exceed 100 percent.

Libraries shall provide the total area for all floors, in square feet, of each library outlet separately, including all areas enclosed by the outer walls of the library outlet and occupied by the library, including those areas off-limits to the public. Outdoor space that is used for programming cannot be included in this C2 square footage calculation. Areas outside of the library’s walls are excluded from being calculated in the E-Rate C2 budget. Square footage for bookmobiles is calculated based on the area enclosed by the outer walls of the bookmobile.

Tribal college and university (TCU) libraries eligible under E-Rate (i.e., they also serve as a public library to their community) shall provide the total area for all floors, in square feet, of all areas enclosed by the outer walls of the library outlet and occupied by the library, including those areas off-limits to the public (examples include, but are not limited to, space for servers, boilers, stairwells, janitorial supplies, inventory/receiving spaces, etc.), except that all areas reserved for use by enrolled students at the college or university must be excluded from the square footage calculation. 47 C.F.R. § 54.502.

In general, libraries calculate their C2 budget by multiplying their square footage x $4.50.  Regardless of size, all libraries are eligible for up to $25,000 over a five-year cycle and all Tribal libraries are eligible for up to $55,000 over a five-year cycle.

Most library systems will add the square footage of each of their library branches and then multiply the total by the C2 budget cycle library multiplier. However, if the number of library branches multiplied by $25,000 results in a larger C2 budget, that aggregate funding floor becomes the library system’s C2 budget.

• Example: A library system with 11 library branches and less than 5556 square feet ($4.50/square foot * 5555 square feet = $24,997.50) would get the aggregate funding floor C2 budget of $275,000 (11 library branches * $25,000 funding floor) over the five-year cycle.

Small library systems with 10 or fewer library branches have the option to calculate their C2 budgets on a per-site basis and then combine the results.

• Example: A library system consists of a bookmobile, a library branch with 4,000 square feet, and a library branch with 7,500 square feet. This library system could calculate its C2 budget as $25,000 + $25,000 + $33,750 = $83,750, because the bookmobile and the smaller library branch would be eligible for the funding floor.

The library square footage multiplier $4.50 while the funding for Tribal libraries is $55,000. As such, a Tribal library with more than 12,222 square feet will use the library multiplier of $4.50 to calculate its C2 budget as the funding amount of $55,350 will exceed the floor for Tribal libraries of $55,000.

A Tribal library system may aggregate its budget using both square footage and the funding floor amounts of its branches.

• Example: A Tribal library system that consists of a book mobile, library branch with 4,000 square feet, and a library branch with 17,500 square feet could calculate its C2 budget as $55,000 + $55,000 + $78,750 = $188,750, because the bookmobile and the smaller library branch would be eligible for the funding floor.

The Category Two (C2) Budget Tool FY2021+ Data Set is designed to assist applicants in determining their C2 budgets for each five-year cycle beginning with the first budget cycle, which starts in FY 2021 and ends in FY 2025. This tool and data set provides information about applicants’ C2 budgets based on the most recent entity profile and commitment data available but does not capture all data points that may be relevant for determining an applicant’s actual available C2 budget at a certain point in time during each five-year cycle, such as pending appeals and FCC Forms 500. It should therefore be used for informational purposes only. Use this data set to answer questions like:

• What is my C2 budget? 
• How much C2 funding have I used?  
• How much C2 funding is pending review?  
• How much C2 funding do I have available? 

You may request an increase in your square footage during the E-Rate Productivity Center (EPC) Administrative Window which typically opens in late October each year. The EPC administrative window is the period during which applicants can make updates to their profile information in EPC to prepare for the upcoming FCC Form 471 filing window. Some of the changes that can be made during this time include:

• Student Count 
• National School Lunch Program (NSLP) numbers 
• Community Eligibility Provision (CEP) numbers 
• Library square footage 
• Associated individuals and entities, including consulting firms 
• Tribal status 
• Tribal affiliation

E-Rate only provides funding for eligible services and equipment.  Cost allocation is a way to delineate between the eligible and ineligible components of equipment and services that an applicant requests through the E-Rate program.

Wi-Fi coverage outside of the physical library location is only allowed if it tangentially occurs when establishing the most cost-effective solution for the library’s interior location.  For example, a library may make the Wi-Fi network available for use from the library campus or parking lot while the library is closed.

When a piece of equipment or service contains ineligible components, a cost allocation is required to remove the ineligible components so that only the eligible portion is funded. For Internet service, occasional office use could be considered ancillary and cost allocation would not be required, if the applicant requested the most cost-effective Internet service offering and 90% of the requested Internet services is used for the library’s eligible purposes.

No. Cabling that is used to provide broadband connectivity within schools and libraries need not be cost allocated, provided it is the most cost-effective means of receiving the eligible service. Eligibility is no longer based on the individual “drops” or “jacks” but on the purposes of the network as a whole.  Security networks and cabling dedicated to voice services are ineligible.

Example 1:  If a library shares a facility with an ineligible museum where they equally utilize the same Internet connection.  50% of the cost of the Internet would need to be cost allocated due to the ineligible use by the museum.

Example 2:  If a library receives an Internet bundle that includes ineligible features such as advanced network security items and these items have a separate cost.  For example, the total cost of the bundle is $1000 where the costs are itemized and show the Internet service cost is $700 and the advanced network security package is $300.  The ineligible advanced network security package must be cost allocated.

Example 3:  If a building houses a library that requires 1 Gbps of Internet service and there is an office simultaneously used as a telehealth center (ineligible for E-Rate support), the telehealth center’s use must be cost allocated unless it is ancillary use.  Use may be presumed ancillary if it is less than 10% of the Internet use.

The Children’s Internet Protection Act (CIPA) was enacted by Congress in 2000 to address concerns about minor’s access to obscene or harmful content over the Internet. CIPA imposes certain requirements on schools or libraries that receive discounts for Internet access, Internet services, or internal connections through the E-Rate program.

Applicants must comply with CIPA to be eligible for funding for Category One internet access and all Category Two equipment or services.  CIPA does not apply if the applicant only receives “telecommunication services.”

The requirements under CIPA include the following: 1) Internet Safety Policy, 2) Technology Protection Measure, and 3) Public Notice and Hearing or Meeting. The details of the policy and these measures are determined at the local level by your community and not by the E-Rate program.  You may find more details on these CIPA requirements by viewing Starting Services of the E-Rate Applicant Process.

Costs associated with technology to implement these protection measures are not eligible for reimbursement through the E-Rate program.

Applicants do not have to be compliant with CIPA in their first E-Rate funding year as long as they are taking steps towards meeting the requirements.

Applicants are required to be compliant in their second year and going forward.

Tribal government entities can designate a library as a Tribal library (for example, through a Tribal Resolution).

In FY 2024 (which begins July 1, 2024), TCU libraries will be eligible for E-Rate discounts if they also serve as a public library for their community and meet the three basic characteristics of a library.

A library qualifies for additional C2 funding for Tribal libraries if it is a library operated by any Tribe, Band, Nation, or other organized group or community, including any Alaska native village, regional corporation, or village corporation (as defined in, or established pursuant to, the Alaska Native Claims Settlement Act (43 U.S.C. § 1601 et seq.)) that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.