E-Rate -

March 26, 2025 The Supreme Court appeared unlikely to strike down a Federal Communications Commission program that subsidizes telecommunications services in rural and low-income areas. Although the court has a 6-3 conservative majority that has undercut the authority of government agencies in a series of recent decisions, justices expressed reservations about the legal argument made by challengers. The case concerns whether Congress in a 1996 law exceeded its authority in setting up the Universal Service Fund, which requires telecommunications services to submit payments to subsidize “universal service." The fees, which are passed on to customers, raise billions of dollars a year that are spent on providing phone and internet services, including for schools, libraries and hospitals. A second, connected legal question is whether the FCC could delegate its own authority to a private corporation it set up called the Universal Service Administrative Company to administer the fund. The argument laid out in court papers by the Justice Department in both the Biden and the Trump administrations is that while Congress cannot "delegate legislative power to executive agencies," it can "authorize an agency to exercise discretion in implementing a statute."

Senator Cruz Announces Plans to Eliminate E-rate’s Wi-Fi Hotspot Eligibility Senate Commerce Committee Chairman Ted Cruz (R-TX) announced plans to use the Congressional Review Act to overturn the Federal Communications Commission's 2024 decision to allow schools and libraries to lend Wi-Fi hotspots to students via the E-rate program. Senator Cruz’s proposal must be approved by the full Senate and House and sent to White House for President Trump’s signature to prohibit this important new E-rate use. More updates to come!

FEDERAL FUNDING FREEZE From CoSN EdTech Policy Update January 29, 2025 OMB Blocks Education and other Federal Fiscal Year 2024 Funding The White House Office of Management and Budget (OMB) issued a memo pausing all federal grants and loans, including the vast majority of K-12 education funding. Following a public outcry, the OMB published a second memo narrowing the directive’s scope to only cover discretionary grant programs associated with the president’s recent Executive Orders about diversity, equity and inclusion, immigration, and other transgender students. To further clarify the second OMB memo and its potential negative impact on students and schools, the U.S. Department of Education released the following statement: The funding pause directed by the January 27, 2025, OMB memorandum only applies to discretionary grants at the Department of Education. These will be reviewed by Department leadership for alignment with Trump Administration priorities. The temporary pause does not impact Title I, IDEA, or other formula grants, nor does it apply to Federal Pell Grants and Direct Loans under Title IV, HEA. The Department is working with OMB to identify other programs that are not covered by the memo,” according to U.S. Department of Education spokesperson Madi Biedermann. Industry stake-holders do not believe E-Rate funding falls under this "pause". More to come!

The FCC released a notice last Friday with a statistical summary of the Cybersecurity Pilot Program’s Form 484 Part 1. Application Period: September 17, 2024 – November 1, 2024 Funding Requests: $3.7 billion Number of Applications: 2,734 Geographic Reach: All 50 states, Puerto Rico, and the District of Columbia Next Steps: FCC will review applications and announce selected participants in a future Public Notice

The Federal Communications Commission voted along party lines Thursday to approve expansion of its E-Rate program, allowing schools and libraries to apply for subsidies for internet services to be used outside of their premises. The changes include a new limit on the amount of financial support applicants can receive over a three-year period, and they call for new safeguards to ensure that Wi-Fi hotspots and other services are used for educational purposes. The changes also stipulate that applicants comply with the Children’s Internet Protection Act, a 2000 law designed to protect children from exposure to obscene or harmful content online.

Funding Year (FY) 2024 FCC Form 471 Filing Window Opens January 17, 2024 The Funding Year (FY) 2024 FCC Form 471 application filing window will open on Wednesday, January 17, 2024, at noon ET and will close on Wednesday, March 27, 2024, at 11:59 p.m. ET. In addition, the E-Rate Productivity Center (EPC) Administrative Window will close Monday, January 15, 2024. Wednesday, February 28, 2024 is the last date that you can submit and certify an FCC Form 470 and still wait the required minimum 28-day period before submitting and certifying your FCC Form 471 by March 27, 2024, the last date of the FY2024 application filing window. Don't forget to update your E-Rate Productivity Center (EPC) profiles. All applicants can now review their profiles and make any additional updates for changes that occurred after USAC's review of their Funding Year (FY) 2023 FCC Forms 471

Bus Wi-Fi - The comment period for the FCC’s second draft Eligible Services List closed on Thursday, November 30, with more than twenty comments submitted by E-rate applicants, service providers, consultants, and industry groups. Comments mostly centered around the topics below. Equipment – a large majority of commenters support classifying school bus Wi-Fi equipment as an eligible Category One purchase. Comments drew comparisons to existing Category One network equipment purchases, indicating that antennas, radios, and other equipment is required for mobile broadband connectivity to be functional. Average costs – while the FCC’s Public Notice discussed an average cost of $1,840 to outfit a school bus with Wi-Fi service based on experience with the Emergency Connectivity Fund program, commenters generally found that cost to be too low. Competitive bidding – a number of commenters suggested that the FCC include school bus Wi-Fi in the $3,600 per year competitive bidding exemption, arguing that commercially available business class internet service for each bus could be purchased at rates below the current bidding exemption. Procedural issues – several comments encouraged the FCC not to require applicants to obtain Billed Entity Numbers (BENs) for Wi-Fi enabled school buses. Support was also shown for ensuring that bus Wi-Fi is eligible for both applicant-owned and leased school buses.

School Bus Wi-Fi Eligible in Funding Year 2024 On October 19, 2023, the Federal Communications Commission voted to approve Wi-Fi service on school buses eligible for E-rate funding. In press release, the FCC stated that they will “fund Wi-Fi on school buses, as well as any E-Rate-eligible equipment needed to enable the service, as part of funding year 2024 eligible services list proceeding and seek comment on the specific services and equipment that should be funded.” Chairwoman Rosenworcel stated “I am proud of what we are doing today. We are going to help close the Homework Gap and get more kids connected for school. This is especially vital in rural areas, where commutes to school are long and broadband is not always available. It is no wonder then why four rural-focused education groups, the National Rural Education Association, the National Rural Education Advocacy Consortium, the Rural School and Community Trust, and Organizations Concerned About Rural Education have come out in support of this effort. But they are not alone. The National Education Association has also endorsed our approach, as has AASA, CoSN, SHLB, and the ALA. There is good to do here and they see it clearly. So let’s get to it.” Your InterMountain E-rate team is committed to staying abreast of the situation as it unfolds, specifically how USAC will adapt the EPC portal and procurement rules surrounding these new services.

EPC Administrative Window Opens October 24, 2023 The EPC administrative window is the period during which applicants can make updates to their profile information including student counts, National School Lunch Program (NSLP) participation rates, library square footage, and the entities and individuals associated with your entity including consulting firms, in EPC to prepare for the upcoming FY2024 FCC Form 471 application filing window. Each year, USAC updates applicant profiles in EPC using the reviewed and approved profile information from their current year FCC Forms 471. We do this so that applicants can start the application process for the upcoming funding year with information in their profiles that is accurate as of the date of their funding commitment decision letter (FCDL). USAC has completed this process for applicants whose profile information was updated during the Program Integrity Assurance (PIA) review of their FY2023 applications. Applicants can now review their profiles and make any additional updates. Please note that EPC will be unavailable between October 30 and November 7. The administrative window will open Tuesday, October 24, 2023 and will close shortly before the FY2024 application filing window opens in early 2024. After this time, applicant profiles will be locked and you will not be able to make changes to your profile information.

The USAC E-rate News Brief released September 21, 2023 explained the following program updates for FY2024 for all applicants. Cost Allocations The FCC provided guidance on a number of cost-allocation calculation issues that applicants find challenging such as allocations to exclude costs associated with minimal ineligible use or service components. For all schools and libraries: • If at least 90% of an applicant’s requested Internet service is being used for eligible purposes, the remaining ineligible use (e.g., occasional office use) of the Internet service will be presumed to be ancillary and cost allocation is not required. • Expenses associated with cabling (“drops” or “jacks”) that is primarily being used to provide broadband connectivity within schools and libraries does not require cost allocation, provided it is the most cost-effective means of receiving the eligible service. The eligibility determination should be based on the purposes of the network as a whole if the network is primarily serving an eligible purpose (i.e., distributing broadband throughout a school or library building). • For non-instructional facilities (NIFs), including library administrative buildings, that share equipment (e.g., a district switch) with a school or library, the applicant does not need to cost allocate for the NIF’s use if it is choosing the most cost-effective offering for the shared equipment. Urban/Rural Designation Update The Urban or Rural Status of an entity (school or library) in the E-Rate program is guided by the U.S. Census Bureau’s delineation. FCC rules require USAC to use the Census Bureau’s most recent rural-urban classification. For FY2023, this was based on 2010 Census data. USAC is in the process of updating the urban-rural classifications for FY2024 based on 2020 Census data. After USAC updates the rural-urban classifications using the 2020 Census data, a small percentage of applicants may notice that their urban/rural designation has changed. We will provide more information in the next issue of the News Brief

FY2024 Draft Eligible Services List Released On September 12, 2023, the Federal Communications Commission issued a Public Notice seeking comment on its proposed Eligible Services List (ESL) for Funding Year 2024. The draft ESL contains only minor changes from the current funding year. Apart from the clarifications regarding software for Category One equipment and consulting fees, the Commission did not propose adding or removing any products or services from the Eligible Services List. Comments to the proposed ESL are due on October 12, 2023, with reply comments due October 26, 2023.

CYBERSECURITY PILOT PROGRAM PROPOSED BY FCC- On July 12, 2023, Federal Communications Commission Chairwoman Jessica Rosenworcel announced a proposal for a three-year, $200 million pilot program to support cybersecurity for K-12 schools and public libraries. • The proposal itself is for up to $200 million over three years "to harden the cyber defenses and determine the most effective methods to protect our schools and libraries." • The pilot program will "work in tandem with federal agency partners that have deep expertise in this area," which presumably means the Cybersecurity and Infrastructure Security Agency (CISA). • The proposal would establish the pilot program within the Universal Service Fund but separate from the E-Rate program "to ensure gains in enhanced cybersecurity don’t come at a cost of undermining E-Rate’s success in promoting digital equity." • The proposal will require a full vote of the Commission, with the full text of the proposal only released upon its adoption. The date for a vote on the proposal by FCC Commissioners has not yet been announced.

SUMMER DEFERRAL In its May 2023 News Brief, USAC announced that their “summer deferral” period started on Friday, May 26. USAC had this to say about the process: Starting May 26, if our first attempt to contact you is on or after May 26, and we do not receive a response to our questions, we will put your application on a deferred status and will continue the review of your application sometime after September 9. This is known as our “summer deferral period,” which extends from the Friday before Memorial Day (i.e., May 26, 2023) through the Friday following Labor Day (i.e., September 8, 2023). During this period, please note: • You can always contact us or respond to our pending questions to restart the review of your application if you become available before September 9, and we encourage you to do so to expedite the review of your application. • If the PIA reviewer has already contacted you and you wish to designate someone to answer questions in your absence, be sure to send your designee's contact information to your PIA reviewer. If the PIA reviewer has not contacted you and your designee will be checking your messages, be sure that you have provided written authorization for your designee to answer questions about your application. If the PIA reviewer makes contact with someone representing your organization but that person is not in a position to answer PIA questions, they should clearly state to the PIA reviewer that the review of your application should be put on hold until you are available

USDA Comments Support Lower CEP Threshold The U.S. Department of Agriculture (“USDA”) has proposed reducing the minimum Identified Student Percentage (“ISP”) required for participation in the Community Eligibility Provision (“CEP”) program from 40% to 25%. As of the public comment deadline last week, USDA had received over 10,000 comments supporting the proposed change. An important individual letter of support came from the Committee on Education and the Workforce of the U.S. House of Representatives, cosigned by the Ranking member of the Subcommittee on Early Childhood, Elementary and Secondary Education. The Committee not only supported lowering the ISP percentage but also expressed the hope that Congress would act to increase the current 1.6x multiplier. Industry experts fully expect USDA to lower the ISP threshold as proposed; the question is when? Comments filed by the New York State Education Department (“NYSED”) encourage USDA to effectuate the change for the upcoming 2023-2024 school year. That could best be done by waiving the July deadline for new CEP applications.

FCC Extends Certain ECF Service Delivery Deadlines Late last Friday, the FCC issued a Public Notice (DA 23-406) and an Order (DA 23-405) waiving and extending the service delivery deadline for certain ECF applicants that did not receive (or have not yet received) funding commitments and/or approvals of appeals, waivers, and post-commitment changes early enough to take full advantage of their funding under previously existing deadlines. The new service delivery deadlines vary by filing window and type of service that may require further clarification. With the COVID-19 public health emergency having expired last Thursday, no ECF service delivery deadline will go beyond June 30, 2024. In summary — and with the recommendation that the Public Notice and the Order both be read in detail — the most important service delivery and invoice deadlines are as follows: • Applicants in Windows 1 and 2 that received an FCDL or RFCDL approving support for services (not equipment) on or after July 1, 2022, have a service delivery deadline of June 30, 2024, or fourteen months after the date of the letter, whichever is sooner. • Applicants in Windows 1 and 2 that received an FCDL or RFCDL approving support for equipment on or after January 1, 2023, have a service delivery deadline of 180 days from the date of the letter, but not to exceed June 30, 2024. • Applicants in Window 3 for all services and equipment have a service delivery deadline of June 30, 2024. • The service delivery date for approved recurring services associated with a new construction funding request is extended to June 30, 2024, if the FCDL or approved RFCDL for the new construction services was received on or after July 1, 2022. However, no changes are made to the service delivery deadlines for special construction (i.e., no extension or waiver of the current one-year deadline to complete the special construction services from the date of the FCDL.) • The invoicing deadline remains 60 days from the FCDL, RFCDL, or service delivery deadline, whichever is later.

UEI Required Beginning May 12 for Applicants that Update or Submit New FCC Form 498 On April 6, 2022, the FCC released a Public Notice (DA-22-371) announcing that the General Services Administration’s SAM.gov will transition from the use of the Data Universal Numbering System (DUNS) number to the SAM.gov assigned Unique Entity Identifier (UEI). In the September 15, 2022 E-Rate News Brief, USAC announced that all service providers receiving funding through the universal service programs will be required to obtain and use a UEI when making changes to their existing or submitting a new FCC Form 498. On May 12, 2023, USAC will update the FCC Form 498 for all E-Rate applicants to require entities to have an active UEI to submit a new FCC Form 498 or to modify their existing FCC Form 498 if they will be using the BEAR method of reimbursement. The update of the FCC Form 498 will affect E-Rate applicants that must submit a new FCC Form 498 or revise their current FCC Form 498, after the May 12, 2023 deployment date.

Support for E-rate Cybersecurity Funding Continues: Replies to the FCC’s requests for comment regarding E-rate support for next-generation firewalls and other cybersecurity services show that applicants, service providers, consultants, and industry groups are in agreement – support for network security is a necessity, and it is urgent. Many of the initial comments highlighted the adequacy of the E-rate program’s funding cap and Category Two funding mechanism to support these vital services. Some comments received: • As the world and our schools become increasingly reliant on technology and the internet, best-in-class cybersecurity infrastructure in school districts is imperative to ensure the safety and security of our students and staff. • When ransomware closes schools, it has a ripple effect, damaging state and federal funding criteria, and erodes public trust. • Because cyberattacks pose a serious threat to the continuous delivery of the broadband connectivity E-rate is designed to provide to schools, these changes would protect our investments. • Cyberattacks pose a serious threat to the continuous delivery of the broadband connectivity E-rate is designed to provide to schools. Let’s hope that these comments from a wide array of stakeholders in the industry will have the needed effect to pivot the Commission’s previous stand on E-rate funding for cybersecurity.

Invoice Systems Consolidation The long-awaited plan to consolidate the historically separate BEAR and SPI invoicing systems into the E-Rate Productivity Center (“EPC”) is expected to take place in the May/June timeframe. Prior to this occurring, USAC will announce the last date to submit invoices within the legacy system and the first date to begin submitting invoices within EPC. In the interim, invoice submissions will be paused to ensure a successful transition. As a preliminary transitional step, USAC has already migrated user invoicing permissions from the legacy BEAR and SPI invoicing systems into EPC. EPC Account Administrators are encouraged to review assigned BEAR (for applicants) and SPI (for suppliers) user permissions to make sure that the correct users have access to prepare and/or certify invoices. Once invoicing is transitioned to EPC, the following changes will be noticed: • Notifications about invoice submission statuses will be delivered to the users’ News Feeds. • USAC inquiries about submitted invoices will be made available through EPC. User replies, including attached documentation, will also be made through EPC. • Invoicing for FY 2015 and earlier years cannot be handled through EPC. Users needing to submit invoices for these earlier funding years are advised to file customer services cases (through EPC) to request instructions for handling such invoices.

The Universal Service Administrative Corporation (USAC) Schools and Libraries Division has announced the E-rate Funding Year 2023 application filing window will open on Wednesday, January 18, 2023, at 12:00 noon ET and will close on Tuesday, March 28, 2023, at 11:59 p.m. ET. The E-rate Productivity Center (EPC) Administrative Window will close January 16, 2023. Proceed With Competitive Bidding – If you have not started the competitive bidding process by filing your FCC Form 470, please begin now. Remember that you must wait at least 28 days after filing the form before entering into an agreement with your selected service provider(s) and filing your FCC Form 471 application(s). View the E-Rate Pre-Commitment Process webinar on the Webinars page. Go to the Eligible Services List page for guidance on the eligibility of products and services for FY2023.

Installation Deadline Waiver Granted by FCC On September 19, 2022, the Federal Communications Commission issued an Order granting a waiver and extension of the service delivery deadline for Funding Year 2020 and 2021 non-recurring funding requests which have a current deadline of September 30, 2022. Responding to a request from the Schools, Health & Libraries Broadband Coalition (SHLB), the Commission noted that “there is good cause to waive and extend the upcoming September 30, 2022 non-recurring service implementation deadline” due to “the continuation of global supply chain delays and its impact on the timely delivery and installation of applicants’ E-Rate-funded equipment and services.” The FCC’s waiver and extension does not apply to Funding Year 2020 requests which currently have a deadline of September 30, 2021. In its decision not to make the waiver retroactive, the FCC notes that their “waiver standards are not met to provide a blanket extension for all funding year 2020 non-recurring service requests nearly one year after this deadline has passed. If there are special circumstances, these applicants may file a waiver request for these funding year 2020 non-recurring services that were required to be implemented by September 30, 2021.”