On May 7, 2025, the Federal Communications Commission (FCC) issued an order addressing nineteen appeals related to E-rate reimbursements. These appeals concern situations where service providers either went out of business or failed to file the required annual certification form, Form 473 – (Service Provider Annual Certification (SPAC) Form). The order outlines the FCC’s decisions on these appeals and introduces a new process to handle such cases in the future.
Background
E-rate applicants can seek reimbursement for eligible equipment and services in two ways:
- Paying upfront and then seeking reimbursement from the Universal Service Administrative Company (USAC) – Form 472, (Billed Entity Applicant Reimbursement (BEAR) Form).
- Paying only the non-discounted share and having the service provider invoice USAC for the remaining costs – Form 474, (Service Provider Invoice (SPI) Form).
Both methods require the service provider to file Form 473 annually and is how a service provider certifies compliance with E-rate program rules. However, when a service provider fails to file this form, USAC cannot process reimbursement requests associated with a service provider missing a Form 473 for the applicable funding year. This left applicants without a mechanism to seek reimbursement.
Key Decisions
- Granted Appeals: The FCC granted eight appeals where the service provider failed to file Form 473 and went out of business or was no longer operational. Additionally, four appeals were granted where the service provider was unable to file the form due to other circumstances.
- Denied Appeals: Seven appeals were denied where the service provider was operational but did not file the required Form 473.
New Process for Reimbursements
The FCC has instructed USAC to implement a new process to reimburse applicants when the service provider has not certified Form 473 due to being out of business or in bankruptcy. This process includes:
- Generating a unique Service Provider Identification Number (SPIN) to create Form 473 for the specific funding year.
- Conducting service checks to confirm the delivery of eligible equipment and services.
- Verifying that the applicant paid the service provider in full before processing the reimbursement.
Conclusion
The FCC’s order provides a solution for E-rate applicants who have been unable to receive reimbursements due to service providers failing to file the required certification form. By implementing a new process and granting specific appeals, the FCC aims to ensure that schools and libraries can access the funding they need for eligible equipment and services.
The full FCC’s order can be viewed here.
