On June 4, 2025, the Federal Communications Commission (FCC) announced the updates to the E-rate Category Two funding floors and multipliers for the next five-year funding cycle, which will span fiscal years 2026 through 2030.
As a reminder, the E-rate program is divided into two categories:
Category One covers services that bring connectivity to schools and libraries.
Category Two supports internal connections within those institutions.
While Category One services do not have a fixed budget, Category Two services are subject to a five-year, pre-discount budget cap.
C2 Budget Cycle 2026 - 2030
· The Category Two funding floor - $30,175.
· The Category Two multiplier - $201.57 per student.
· For libraries - $5.43 per square foot.
Applicants will be required to validate their student counts or library square footage in the first year they apply for Category Two support during the FY 2026-2030 cycle. This validation will set their Category Two budget for the entire five-year period.