E-Rate Vision
The E-rate program was created in 1996 to provide advanced services to public and nonprofit schools and libraries. Each year, approximately $2.25 billion dollars are budgeted to enable e-rate eligible schools and libraries to purchase procure these advanced services at a discounted rate. The E-rate discount ranges from 20 – 90% and is based on the number of students that participate in the free and reduced lunch program.
E-Rate is administered by the Schools and Libraries Division of the Universal Service Administrative Company (USAC) and is funded through a Universal Service fee that is charged to telecommunications companies that provide interstate and/or international telecommunications services.
E-Rate eligible services – Priority 1 vs. Priority 2
E-Rate funding falls into four categories: telecommunications services, Internet access, internal connections, and basic maintenance of internal connections.
The telecommunications services and Internet access categories are commonly referred to as “Priority 1” because they receive the first priority for funding, while the internal connections and basic maintenance on internal connections categories are referred to as “Priority 2” because they receive the last priority for funding.
USAC typically funds all Priority 1 services first and then begins funding Priority 2 requests with the highest discount districts receiving next priority until funds are depleted. Historically the cutoff point for four of the last six years has been around 80%, leaving many districts unfunded for Priority 2.
All of Trillion Services are designed for Priority 1 E-Rate funding
