FCC Eliminates E-Rate Amortization Requirement

Many schools and libraries rely on the Federal Communications Commission’s E-Rate program to ensure that they can receive affordable, high-speed broadband to connect today’s students with next-generation learning opportunities. An FCC decision in 2000 limited E-Rate’s use for this purpose by requiring schools and libraries to amortize over three years upfront, non-recurring charges of $500,000 or more, including charges for special construction projects. This amortization requirement increased costs for E-Rate supported builds and created uncertainty for applicants about the availability of E-Rate funding for the second and third years of the amortization cycle. In 2014, the FCC suspended the requirement through funding year 2018 in order to lower these barriers to broadband infrastructure investment.

Informed by our experience during this suspension period, in Jan 2019, the FCC proposed to permanently eliminate the amortization requirement for the E-Rate program and waived the requirement for the duration of this rulemaking. After a thorough review of the record, we now eliminate this amortization requirement. Our decision will promote increased broadband infrastructure deployment to our nation’s schools and libraries and thereby further the FCC’s goal of closing the digital divide.