Because applicants may only request E-rate discounts on eligible services or products, ineligible portions of a funding request can be reduced during an application review or post-commitment review. However, if 30% or more of a funding request is deemed to be for an ineligible service or product, the entire funding request may be denied rather then reduced.

It is important to carefully review funding requests and remove the cost for ineligible services from the requested amount in order to avoid a funding denial due to the 30% rule.