E-RATE 5-YEAR FIXED BUDGETS

Due to declining enrollment in many public schools, the FCC now allows applicants to lock in their student enrollment as of October 1, 2024, for the full five-year Category 2 budget cycle. This option provides budget stability over the entire cycle.

Each year, applicants and Consultant firms such as Educational Professional Services review the reported enrollment data to monitor any changes.

• If there is an increase in enrollment at any point during the five-year cycle, EPC will automatically adjust the applicant’s Category 2 budget upward to reflect the increase.

• If enrollment decreases, the applicant’s budget will remain unchanged from the originally locked-in amount.

Category 2 services under the E-Rate program are subject to a pre-discount budget cap that spans a five-year cycle. This is referred to as the Five-Year Category 2 Budget Cycle.

• Budget Allocation: Each applicant receives a total Category 2 budget based on:

  • The number of students (for schools), or

  • The square footage (for libraries and library systems).

• Eligible Use: The budget applies only to eligible internal connections and related services within the building.

• Use It or Lose It: Applicants may draw down funds from their total five-year allocation across any of the five years.

  • Unused funds within the cycle remain available during that same five-year period.

  • Funds do not carry over into the next five-year cycle.

Applicants should plan carefully to maximize the use of their allocated funds within the designated cycle and avoid losing any remaining amounts at the end of the period.