Funds For Learning

To receive E-Rate support, applicants must follow specific procedures established by the Federal Communications Commission and use an online portal called EPC. Applicants use the EPC system to notify vendors of Requests for Proposals (RFPs), report the results of their local competitive bidding process, and submit funding requests to USAC, the E‐rate program administrator. The purpose of this white paper is to provide data and applicant feedback about the performance of the current system.

The Emergency Connectivity Fund (ECF) has provided a much-needed infusion of laptop computers and Wi-Fi hotspots to keep K-12 students and library patrons connected to the Internet. Up until this point, we have all been estimating what was needed to help our communities stay connected. The time for guessing is over. Based on ECF funding request data from 2021, Funds for Learning found that $4.51 billion is needed annually to provide secure devices with internet connections to families who otherwise lack adequate connectivity.

A review of applications for the Emergency Connectivity Fund (ECF) demonstrates the urgent need for laptop computers and internet access for millions of K-12 students and library patrons. Schools and libraries have requested support for 12.9 million devices via the ECF. There were two ECF filing windows in 2021. 9.4 million laptop computers were requested along with another 1.7 million tablet computers. Connected learning devices represented two-thirds of the $6.3 billion in support that was requested, and 17 percent of the funds were requested for mobile broadband.

The E-rate program supports nearly every school and library in America, annually providing billions of dollars of much-needed support for Internet access, telecommunications, and computer networking. Over 21,000 applicants and 4,100 vendors currently participate in the program. For most, their perception of the program is limited to a handful of funding requests and a few personal interactions with USAC customer service representatives. The purpose of this analysis is to provide stakeholders with a broader picture of the E-rate program.

On May 9, 2020, USAC issued the first wave of Funding Year (FY) 2020 Funding Commitment Decision Letters (FCDLs). FY2020 Wave 1 included almost $680.7 million in funding commitments, and funding decisions on over 53% of the 38,207 applications that were received on or before the close of the FY2020 application filing window on April 29, 2020. Funds for Learning notes that the wave came only ten days after the close of the filing window, and was a record-setting funding wave by all accounts:   

A report that summarizes the need to connect millions of K‐12 students to the Internet from their home because they lack adequate internet access. These students cannot attend school, submit homework, or take tests online. An estimated $7.5 billion is required to provide these students with a secure and reliable network connection and connected learning device. Funds For Learning estimates that a total of $5.25 billion in E-rate discounts would be required, and the remaining $2.29 billion would be paid by schools and libraries with funding from other sources.

Congress and the Federal Communications Commission should act swiftly to ensure that all our school-aged children are online and continue learning during the coronavirus pandemic. Keeping students safe and connected during this challenging time is essential to our society’s well-being. Urgent and effective action is required, and the existing E-rate funding program is the most viable solution to meet the need. Congress should immediately:

To meet the E-rate competitive bidding requirements and submit a timely FY2017 funding application, applicants were required to submit their E-rate Form 470 by April 13, 2017. The Form 470 notifies potential vendors that schools and libraries are in the market to purchase goods and service with E-rate discounts. For the third year in a row, the number of applicants posting Form 470s has declined.

The overall count was down 13% from 2016. The two groups that have seen the biggest change are individual schools and small libraries, although participation is down among all applicant types. The reduced number of applicants likely stems from (1) the phase down of support for telephone service (previously the most requested service) and (2) USAC’s difficult-to-use online portal (EPC). It remains to be seen whether the reduction in Form 470 applicants will translate to lower demand during the Form 471 filing window, but the initial indications are that the number of funding requests is likely to be lower in 2017.

Twenty years after the Telecommunications Act of 1996 created E-rate funding, significant measures are underway to update the program that has become vital to schools and libraries across the United States. In an effort to aid policymakers, administrators and other E-rate stakeholders as they shape the future of the program, Funds For Learning releases its . Based on the latest funding data, and a nationwide survey of applicants, this report provides a snapshot of the E-rate program as of September 2016.