Cybertelecom Federal Internet Law & Policy An Educational Project

Universal Service :: Schools & Libraries Program :: Erate

The Telecommunications Act of 1996 significantly expanded the Universal Service program to include support for Internet access to schools and libraries, and to rural health care programs.  In implementing the program, the FCC created a $2.25 billion fund.  All K-12 schools are eligible for subsidies from the program and the subsidies can be used for a wide variety of purposes including Internet access service, installation and maintenance, and certain hardware.  Different schools receive different levels of subsidies depending up whether they are urban or rural and depending upon what percentage of their students are eligible under the federal school lunch program - schools with the highest levels of eligibility take from the Fund first.  The Fund is collected from telecommunications providers. Schools and libraries that take advantage of ERate much comply with the Internet Filtering obligations of the Children's Internet Protection Act.

The Dept of Education has reported that in 1999, 95% of schools now have Internet access and approximately 80% of schools have broadband Internet access.

• What is Covered by the School and Library Fund?
• An ISP's Guide to the Universal Service $2.25 Billion Fund For Schools and Libraries. 1998
• Statistics indicating how close Nation is to achieving goal of wiring all schools by year 2000
• Schools and Libraries Wiring Tangled in Politics, Boardwatch (September 1998)
• FCC to Sen. Stevens: No New ISP Tax!, Boardwatch (June 1998)

Federal Activities

• Released: 03/01/2005. WIRELINE COMPETITION BUREAU SEEKS COMMENT ON PROPOSED REVISIONS TO FCC FORMS 472, 473 AND 474. (DA No. 05-513). (Dkt No 02-6). Comments Due: 03/22/2005. Reply Comments Due: 04/05/2005. WCB. Contact: Greg Lipscomb at (202) 418-7400, T, FCC 3/4/2005
• Witholding of Erate Funds
  • Letter to FCC Chairman Powell regarding changes made by the FCC that has resulted in withholding of hundreds of millions of dollars in commitments for Internet funding for schools, libraries, and rural healthcare facilities under the E-rate program, House 10/29/2004
  • Schools lose Net over E-rate freeze, CNET 10/22/2004
  • Released: 10/14/2004. RELEASE OF FUNDING YEAR 2005 ELIGIBLE SERVICE LIST FOR SCHOOLS AND LIBRARIES UNIVERSAL SERVICE MECHANISM. (Dkt No 02-6). (FCC No. 04-244). WCB. Contact: Jennifer Schneider at (202) 418-7400, TTY: (202) 418-0484, FCC 10/19/2004
  • FCC Takes Steps to Resolve E-Rate Delays., FCC 10/8/2004
  • Federal-State Joint Board on Universal Service— Schools and libraries; universal service support mechanism; correction,, Fed Reg 10/8/2004
  • Internet Grants Cut, and FCC Scolded, NYT 10/8/2004
  • Internet Grants to Schools Halted as the FCC Tightens the Rules, NYT 10/5/2004
  • Feds hold E-Rate funds hostage, Register 10/5/2004
  • Schools, Libraries Internet Aid Delayed, AP 10/5/2004
• Federal-State Joint Board on Universal Service— Schools and libraries; universal service support mechanism; correction,, Fed Reg 10/22/2004
• SCHOOLS AND LIBRARIES UNIVERSAL SERVICE SUPPORT MECHANISM. Issued Erratum correcting the 5thR&O and Order, FCC 04-190, released August 13, 2004. (Dkt No. 02-6). Action by: Chief, Telecommunications Access Policy Division, Wireline Competition Bureau by ERRATUM. WCB, FCC 9/21/2004
• FCC Adopts Further Measures to Safeguard the E-Rate Program., FCC 8/9/2004
• Press Statement Regarding the Schools and Libraries Corporation's First Wave of the Commitment Letters by the Federal Communications Commissioner Harold Furchtgott-Roth. 11/23/1998
• FCC Denies Schools' Petitions for Waiver of the Designation of Their Districts as Urban Under the Commission's Rules that Partially Determine the Universal Service Discount for which Schools are Eligible. [ Text | WordPerfect | Acrobat ] 11/19/98
• President Clinton Delivers Commencement Address to MIT Graduates (supports E-rate program) (June 5, 1998)

• FCC Takes Additional Steps to Improve the Universal Service Schools and Libraries Program., FCC 12/19/2003
• Released: 10/01/2003. WIRELINE COMPETITION BUREAU ANNOUNCES RELEASE OF SCHOOLS AND LIBRARIES ORDERS IN CC DOCKET NO. 02-6. (DA No. 03-3008). (Dkt No 02- 6). WCB. Contact: Katherine Tofigh at (202) 418-7400 DA-03-3008A1.doc DA-03-3008A1.pdf DA- 03-3008A1.txt, FCC 10/3/03
• SCHOOLS AND LIBRARIES UNIVERSAL SERVICE SUPPORT MECHANISM. This errata corrects the Second Report and Order and Further Notice of Proposed Rulemaking in CC Docket No. 02-6 (FCC 03-101) released April 30, 2003. (Dkt No. 02-6). Action by: Mark Seifert by ERRATUM. (DA No. 03-2058). WCB. Contact Kathy Tofigh, FCC 6/24/03
• FCC Agenda for April 23: Inquiry re Carrier Current Systems, including Broadband over Power Line Systems; Schools and Libraries Universal Service Support Mechanism (CC Docket No. 02-6);, FCC 4/17/03
• FCC Takes Steps to Improve the Universal Service Schools and Libraries Program., FCC 4/28/03
• Alaska Erate Waiver

Alaska State Telecommunications Policies

GCI Schools Access

Released: 11/01/2002. WCB ANNOUNCES OPENING OF FUNDING YEAR 2003 WINDOW FOR E-RATE APPLICATIONS & THE RELEASE OF FCC FORMS 470, 471 AND THE ACCOMPANYING INSTRUCTIONS TO BE USED FOR FUNDING YEAR 2003 E-RATE APPLICATIONS. (DA No. 02-2954). (Dkt No 02-60). WCB. Contact: 1-888-203-8100 FCC 11/3/02

SCHOOLS AND LIBRARIES UNIVERSAL SERVICE SUPPORT MECHANISM. Adopted a framework for the treatment of funds collected for the schools and libraries support mechanism that have, through the normal operation of the program, not been disbursed. (Dkt No. 02-6). Action by: The Commission. Adopted: 06/13/2002 by R&O. (FCC No. 02-175). WCB, FCC 6/17/02

ITAA Says Connection-based USF System Could Benefit ISPs - reply comments rebuts Bells on Access Charges demands, ITAA 5/22/02

• New guide: E-rate Discounts for Schools and Libraries, USAC 7/19/02
• PRESS STATEMENT OF FCC COMMISSIONER GLORIA TRISTANI ON THE E-RATE PROGRAM. STMT CMMR. Contact Deena Shetler 202-418-2300 DOC-209873A1.pdf DOC-209873A1.doc DOC-209873A1.txt, FCC 2/9/01
• Chairman Kennard's Statement on Urban Institute's E-Rate Evaluation 9/11
• Commissioner Susan Ness Issues Statement Applauding E-Rate Role in Bringing the Information Age to America's Schools and Libraries.  9/11
• COMMISSIONER NESS ISSUES STATEMENT CELEBRATING THE START OF YEAR THREE OF THE E-RATE. Internet URL: 4/14
• STATEMENT OF FCC CHAIRMAN WILLIAM E. KENNARD AND COMMISSIONER GLORIA TRISTANI E-RATE TO RECEIVE FULL FUNDING $186 MILLION TO BE SENT THIS WEEK.  4/14
• FCC CHAIRMAN KENNARD REC EIVES AWARD FROM EDUCATORS Chairman cites award as "success of E-Rate program" 3/3

Department of Education, Internet Access in U.S. Public Schools and Classrooms: 1994-1999, January 2000.

• ADDRESS BY CHAIRMAN WILLIAM E. KENNARD, "E-RATE: A SUCCESS STORY," EDUCATIONAL TECHNOLOGY LEADERSHIP CONFERENCE -- 2000, COUNCIL OF CHIEF STATE SCHOOL OFFICERS, WASHINGTON, D.C., JAN. 14.
• FCC PR:  FCC Chairman Kennard Celebrates the Success of the E-Rate in Connecting Over 1 Million Classrooms to the Internet 11/18/99
• 8/6/99 STATEMENT OF COMMISSIONER FURCHTGOTT-ROTH ON ADOPTION OF FULL FUNDING OF THE E-RATE. Internet URL: http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr936.txt
• FCC CHAIRMAN KENNARD DETAILS THREE PART STRATEGY TO NARROW THE DIGITAL DIVIDE BETWEEN INFORMATION HAVES AND HAVE-NOTS. Details on an investment strategy to narrow the digital divide from FCC Chairman Kennard speech delivered July 28, 1999 in Houston, Texas, hosted by the National Council of La Raza. Contact: Linda Paris at (202) 418-0500. Kennard. Internet URL: http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9055.wp
• REVIEW OF DECISION OF UNIVERSAL ADMINISTRATOR. Denied letter of appeal and affirmed the Schools and Libraries Division's denial of Lombard School Distrit 44, Lombard, ILL, application for discounts for telecommunications services. Dkt No.: CC- 96-45. Action by Acting Deputy Chief, Common Carrier Bureau. Adopted: August 2, 1999. by Order. (DA No. 99-1528). CCB
• Press Statement of Commissioner Furchtgott-Roth FCC Again Violates Statutory Mandate By Increasing E-Rate Tax While Delaying Implementation of High-Cost Program.May 27 1999
• Daschle Says FCC Chairman Pledges to Help Ensure High-Speed Internet Services Come to Rural America (June 11, 1999)
• Senator Dick Armey Letter to Ch Kennard (May 19, 1999)
• Ch Kennard Statement that there is enough money to lower phone bills and increase internet access. (May 17, 1999)
• Press Statement Regarding the Schools and Libraries Corporation's First Wave of the Commitment Letters by the Federal Communications Commissioner Harold Furchtgott-Roth. 11/23/1998
• FCC Denies Schools' Petitions for Waiver of the Designation of Their Districts as Urban Under the Commission's Rules that Partially Determine the Universal Service Discount for which Schools are Eligible. [ Text | WordPerfect | Acrobat ] 11/19/98
• Letter from Chairman Kennard to the Schools and Libraries Corporation requesting that they complete certain actions before they issue any funding commitment letters to applicants for the schools and libraries universal service support mechanism. 7/16/98
• The Commission seeks comment on the Kentucky Department of Education's petition for waiver of the Commission's rules on aggregation for schools and libraries. 7/6/98.
• Kentucky Department of Education Seeks Waiver of Commission Rules on Aggregation for Schools and Libraries - CC DOCKET NO. 96-45. See ITP Universal Service Page.  The Commision is seeking comments on the Kentucky Department of Education's Petition for Waiver to permit it to compute an aggregated discount rate at the state level for the purposes of applying for discounted services under the universal service support mechanism for schools and libraries. (DA No. 98-1334). Contact: Antoinette Stevens or Irene Flannery, Universal Service Branch, Accounting and Audtis Division at (202) 418-7400. Released: July 2, 1998.
• Comments due July 23
• Replies due August 6, 1998.
• Chairman Kennard Tells Mayors U.s. Faces Third Great Education Challenge of Last 150 Years; Urges Support for E-rate.
• FCC Reforms Universal Service Support Mechanism for Schools and Libraries (CC Docket No. 96-45, FCC 98-120). [ WordPerfect | Acrobat | News Release | Public Notice | Statements: Kennard, Ness, Furchtgott-Roth, Powell, Tristani] 6/23/98
• Remarks of Commissioner Susan Ness Before the Computer and Communications Industry Association's 1998 Washington Caucus, Washington, D.C., JUNE 9, 1998. "To Have and Have Not: Advanced Telecommunications Technologies".
• Statement of Chairman William Kennard Before the Subcommittee on Communications Committee on Commerce, Science, and Transportation United States Senate on the Reauthorization of the Federal Communications Commission (June 10, 1998)
• President Clinton Delivers Commencement Address to MIT Graduates (supports E-rate program) (June 5, 1998)
• Statement of FCC Chairman William Kennard on the Effort to Hook Up Schools and Libraries (6/5/1998)
• Chairman Kennard's Speech "Bridging the Digital Divide" to the NAACP Board of Trustees in Baltimore, MD. 5/18/98
• Common Carrier Bureau Seeks Comment on Proposed Revision of 1998 Collection Amounts for Schools and Libraries and Rural Health Care Universal Service Support Mechanisms. [ WordPerfect | Acrobat | Furchtgott-Roth Statement | Tristani Statement ] 5/14/98 DA 98-872
• FCC Issues Report to Congress on Administration of Universal Service Support for Schools and Libraries. [ Word Perfect | Acrobat | News Release | Chairman Kennard's Statement ] 5/8/98
• NTIA: Collection Amounts for Schools and Libraries and Rural Health Care Providers (Response to May 8 FCC Report)

• Daily Digest 4/4/98: Statement of FCC Chairman William Kennard Concerning Schools and Libraries Demand Report. Kennard
• Remarks of William E. Kennard Chairman, Federal Communications Commission to Educom Networking '98 April 16, 1998 Washington, D.C. (as prepared for delivery

Impact Tech on Education

• Report: TECH TONIC: TOWARDS A NEW LITERACY OF TECHNOLOGY, Alliance for Children 9/30/2004
• Urban Institute, E-Rate and the Digital Divide:  A Preliminary Analysis From the Integrated  Studies of Educational Technology, Sept 20, 2000
• FCC Releases Final Details of October 6th Symposium Exploring the Educational Power of Broadband., FCC 9/30/2004
• A Caution on Kids, Technology, Wash Post 9/30/2004
• Computers 'do not boost learning', BBC 9/30/2004
• People still thick despite internet, Register 9/30/2004
• Schools test faith in tech, CNET 11/11/2003
• Classroom Disconnect, TechTV 1/29/03
• Public schools: Why Johnny can't blog, CNET 11/11/2003
• Panelists Debate Merits Of Wired Schools Teckweb July 1 1999

Fraud

• See :: Crime :: FCC Enforcement ::
• Govt Activity
  • Investigations Wednesday, March 16, 2005 2:00 PM 2322 Rayburn House Office Building, House Commerce 3/15/2005
  • Concerns Regarding the Structure and FCC's Management of the E-Rate Program GAO-05-439T, March 16, 2005, GAO 3/18/2005
  • Problems with the E-rate Program: GAO Review of FCC Management and Oversight Hearing by the Subcommittee on Oversight and
  • Problems with the E-rate Program: Waste, Fraud, and Abuse Concerns in the Wiring of Our Nation's Schools to the Internet Hearing by the Subcommittee on Oversight and Investigations Wednesday, September 22, 2004 10:00 AM 2123 Rayburn House Office Building, House Hrg 9/21/2004
  • House Commerce Hrg: Sept 14 Business meeting to consider a motion authorizing the issuance of subpoenas for certain records and testimony in connection with the Committee’s investigation into the E-rate program, House 9/14/2004
  • FCC Adopts Further Measures to Safeguard the E-Rate Program, FCC 8/18/2004
• Federal E-Rate Indictments Grow, InternetNews 4/8/2005
• Two Brothers Plead Guilty in E-Rate Ring, InternetNews 10/26/2004
• Waste and Fraud Besiege U.S. Program to Link Poor Schools to Internet, NYTimes 6/17/2004
• NEC Subsidiary Admits to E-Rate Fraud, Internet News 6/1/2004
• E-Rate Probe Focuses On Chicago, Internet News 1/20/2004
• FCC Alters Rules for School Fund:, Wash Post 12/19/2003
• Congress Widens E-Rate Probe, Internet News 7/16/03
• Fraud, waste in school Internet program, CNN 5/9/03
• E-Rate Fraud Probe Widens, Wired 5/2/03
• House Subpoenas E-Rate Records, Internet News 4/30/03
• FCC votes to revamp e-rate program, CNET 4/28/03
• Inquiry of school Net funding deepens, CNET 3/14/03
• Probe of school Net funding deepens, MSNBC 3/14/03
• House Panel Expands Probe Into E-Rate Program, Reuters 3/14/03
• Phone fund for schools, libraries riddled with fraud, Center Public Integrity 1/13/03
• Public Internet Subsidies called fraud ridden, NYT 1/13/03
• Internet Company Accused of Fraud in School Program, NYT 12/20/02

Papers

• Krishna P. Jayakar and Eun-A Park, Impact of School District Demographics and Financial Status on E-Rate Funding: Analysis of Pennsylvania Data for 1999 and 2004 TPRC 2006
• Hudson, Universal Access: What Have We Learned from the E-Rate?, TPRC 9/18/02
• ERIC Digest
• The Internet and Early Childhood Educators: Some Frequently Asked Questions.
• Internet Basics.
• Dept Ed
  • E-Rate and the Digital Divide: A Preliminary Analysis From the Integrated Studies of Educational Technology
  • Parents Guide to the Internet - November 1997
• USAC, Service Provider Post Commitment Process Sept 2001
• Schools and Libraries Wiring Tangled in Politics, Boardwatch (September 1998)
• FCC to Sen. Stevens: No New ISP Tax!, Boardwatch (June 1998).

News

• Sen. Stevens Will Recognize E-Rate 10 Year Anniversary on Wednesday, Senate 3/1/2007
• A Disconnect on School Internet Funds, Wash Post 10/28/2005
• FCC accused of doing poor job on E-Rate, Globe and Mail 10/18/2005
• Congress skeptical of FCC's Katrina proposal for schools and, WXXA 10/7/2005
• House Eyes FCC E-Rate Program In Gulf Coast, Telecomweb 10/5/2005
• FCC’s E-rate Plans to Assist Gulf Coast Recovery: Ensuring Effective Implementation Hearing by the Subcommittee on Oversight and Investigations Thursday, October 06, 2005 1:00 PM 2123 Rayburn House Office Building, House Commerce 10/5/2005
• Fee structure for Universal Service Fund sparks debate, Free Press 7/26/2005
• Dr. Guess wins Marbury Tech. Innovation award, Sentinel 7/22/2005
• School Ups Grade by Going Online, Wired 10/12/2004
• Eroding E-rate, CNET 6/17/2004
• Library plans session on Internet policy, mlive 6/14/2004
• Libraries will introduce Internet filters on computers, Pilot 6/14/2004
• E-Rate In 'Financial Disarray', FCW 1/13/03
• Top 25 Service Providers - FY2001, Center Public Integrity 1/13/03
• Miss. First To Put PC In Every Classroom, AP 1/3/03
• Michael Powell's Mercedes Divide by Larry Irving, Wash Post 7/2/01
• Supreme Court to review FCC subsidies The high court will hear a challenge to an FCC program to subsidize Internet connections for schools and libraries. ZDNet 6/5
• Clinton wants information superhighway routed to poor regions NAndotimes 6/5
• Supreme Court Leaves E-Rate Unchallenged Newsbytes 5/31
• FCC Distributing First Wave of This Year's E-Rate Funding InternetNews 4/14
• Schools promised $3.6B for Internet Las Vegas Sun 11/24
• FCC Calls Talks On Rural Internet Access TECHWEB June 11 1999
• FCC under fire for boosting e-rate, ZDNet May 27, 1999
• FCC Boosts Funds For School Net Access, Techweb May 28, 1999
• FCC Boosts School Internet Subsidies Reuters May 28, 1999
• FCC Urged to Subsidize Rural Net Access, USA Today May 1999
• FCC program for Internet access becomes a bonanza for companies WSJ May 11, 1999
• Issues That Defined the Year for Schools and Computers, Cybertimes 12/30/1998

Links E-Rate

• School & Library Corporation
• The National Exchange Carriers Association http://www.neca.org The NECA is setting up an independent entity which will service as the universal service fund administrator. This is where applications for the universal service fund and information about reimbursements can be found.
• The Federal Communications Commission Universal Service Web Page.
• FCC's Help Desk for E-rate 1-888-203-8100
• In re Federal-State Joint Board on Universal Service, Third Report and Order (Oct 14, 1997)
• In the Matter of Federal-State Joint Board on Universal Service, Report & Order (May 8, 1997)
• FCC FAQ on Universal Service
• FCC's Learnet
• FCC's Healthnet Page: Universal Service for Rural Health Care Providers
• FCC Decision on e-rate at E-Rate Central
• American Library Association Universal Service Webpage
• Department of Education's Report to FCC by E-Rate Implementing Working Group July 31, 1997
• E-Rate Central Sponsored by the NY State Dept of Education
• Massachusetts DTE 1996 Telecommunications Act (Universal Service) Home Page
• Merit Network's Universal Service Fund Page
• MySLD.com
• Save the E-Rate Campaign
• Virtual Information Institute's Universal Service Forum
• Andy Oram, FCC Gives to Schools, Libraries, and Health-Care Providers (May 12, 1997)