News Story

FCC Releases Category 2 Order

Tuesday, December 3, 2019 12:00 AM

The FCC released the Category Two order which makes the category two budget approach permanent.

The Order will be effective July 1, 2021 (E-Rate FY2021) with the following changes:

  • Reset all category two budgets and begin fixed five-year cycles
  • Adopt library system-wide and district-wide budget calculations.  Adjusted for inflation every five years.
  • School Districts:  $167/per student.  Libraries $4.50/sq foot.  One five-year budget through 6/30/2025.
  • (Fixed five year budget will refresh again on 7/1/2025 with new multipliers adjusted for inflation.)
  • Minimum category two budget:  $25,000
  • Student count is based on full time enrollment in the first year of the five-year cycle.
  • Non-Instructional facilities are not eligible for category two budgets
  • Managed Internal Broadband Services, Caching, and  Basic Maintenance of Internal Connections - Permanently Eligible
  • Equipment transfer rules loosened. Transfers within the district okay at any time. No longer necessary to notify USAC of transfers but must keep records
  • Prorated budget for FY2020 transition year
  • No changes to Eligible Services List.  FCC provided reminder that the Children's Internet Protection Act prohibits recipients from using E-Rate funding for technology protection measures

For further details see: