E-RATE CATEGORY BUDGETS 2026-2030

 IT IS TIME TO START PLANNING FOR CATEGORY 2 BUDGETS  

On June 4, 2025, the Federal Communications Commission (FCC) announced updated Category Two (C2) funding floors and multipliers for the next five-year E-Rate budget cycle, which will span fiscal years 2026 through 2030.

Beginning July 1, 2026, the revised budgets will provide:

• $201.57 per student over five years for schools,

• $5.43 per square foot over five years for libraries,

• A $30,175 minimum for schools with fewer than 149 students,

• A minimum of $66,385 for Tribal libraries.

These changes reflect the FCC's ongoing commitment to supporting broadband connectivity in schools and libraries, particularly those serving smaller and historically underserved communities.

Lessons from a Decade of Budget Cycles

Over the past decade, both applicants and service providers have learned how to effectively navigate the five-year budget cycle introduced following the adoption of the E-Rate Modernization Order on July 11, 2014. 

One valuable lesson learned is to return all remaining funding BEFORE new funding is approved.  The goal is to avoid having a multiple-year audit instead of just a one-year audit.