On June 4,2025, The Federal Communications Commission (FCC) announced significant adjustments to the E-rate Category Two funding floors and multipliers for the upcoming five-year funding cycle, which will run from FY2026 through FY2030. This announcement reflects a 20.7% inflation-adjusted increase from the previous funding cycle.
The E-rate program, formally known as the schools and libraries universal service support program, is divided into two categories: Category One services, which provide connectivity to schools and libraries, and Category Two services, which provide connectivity within these institutions. While there is no set budget for Category One services, Category Two services have a five-year, pre-discount budget limit.
Key Adjustments for FY 2026-2030:
- Funding Floors:
- The Category Two funding floor for smaller schools and libraries has been increased from $25,000 to $30,175.
- For Tribal libraries, the funding floor has been adjusted from $55,000 to $66,385.
- Budget Multipliers:
- For schools and school districts, the Category Two multiplier has increased from $167 per student to $201.57 per student.
- For libraries and library systems, the multiplier has been adjusted from $4.50 per square foot to $5.43 per square foot.
Applicants will be required to validate their student counts or library square footage in the first year they apply for Category Two support during the FY 2026-2030 cycle. This validation will set their Category Two budget for the entire five-year period.
The FCC’s public notice can be viewed here.
