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Federal Internet Law & Policy
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Federal Funding for Information Technology: FCC
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Schools and Libraries Fund (E-rate)

  • Eligible:  Schools (K12) and libraries. Program:  Need Based Matching Grants  Funding Cycle:  Annual.  Funding year July - June.  Year round: Posting of Form 270 (Description of Services Requested and Certification).  Nov 6, 2000: Form 271 (Services Ordered and Certification) filing Window Opens.  Jan 18, 2001: Form 271 Due.   Funds:  Fully funded at $2.25 Billion. Contact Information:  Universal Service Administration Corporation, 888-203-8100 http://www.sl.universalservice.org
  • The FCC's Universal Service Program was expanded with the Telecommunications Act of 1996 to include the School and Libraries program.  The program provides subsidies for eligible communications services for all K-12 schools (public and private) and public libraries (not affiliated with institution of higher learning).  This includes Internet services, however, there is a detailed list of what pieces of a network are eligible for subsidies and what are not (wiring, routers, hubs, file servers, installation, and maintenance are eligible.  Computers, non-network software, fax machines, modems, teacher training, upgrades to electrical systems, asbestos removal and security are not covered).  The amount of subsidy that a school or library receives is based on the number of students in the school eligible for the federal school lunch program.  The more kids eligible, the greater the subsidy.  The largest subsidy is a 90 percent discount but even the every school or library is eligible for at least a 20 percent discount.  Qualified applications are approved in order of need until the funds are depleted - thus schools with the greatest needs have their applications approved first.  School and libraries must create technology plans reviewing what they already have and what their needs are.  They then post request for proposals to the USAC website for several weeks of competitive bidding.  The school or library selects the "most cost effective plan," negotiates contracts with the service providers, and gives notice to the USAC.  The service providers send to the school or library  a bill which is paid in part by the school or library and in part by the USAC.
  • Be advised that under current law, recipients of E-rate must comply with the Children's Internet Protection Act.

    • Telecommunications Development Fund

    Eligible:  Small Businesses. Program. Venture capital.   Funds: "TDF has over $25 million in capital under management and offers financing in the form of equity investments ranging from $375,000 to $1 million per initial investment." Who we are. Contact Information:  Telecommunications Development Fund,  2020 K Street, NW, Suite 375,  Washington, DC 20006,  Phone: 202-293-8840,  Fax: 202-293-8850,  E-mail: inquiries@tdfund.com,  Contact us: inquiries@tdfund.com

  • "The Mission of the Telecommunications Development Fund is to invest in innovative technologies and services that expand options for business, consumers and communities and to provide education and outreach to entrepreneurial communities nationwide"  Who we are.  According to a Washington Post article, the TDF is funded from the interested earned on deposits from FCC wireless auctions.  Nevertheless, TDF states that it is not part of the federal government.  "Although TDF works with those departments and agencies concerned with issues affecting the telecommunications industry, it is a self-sustaining, private corporation, otherwise known as an "evergreen" fund."  TDF FAQ.  Note that the Chair of the FCC is almost always a member of the Board of Directors.  TDF Board of Directors.

    • Rural Health Care Support

    Eligibility: Rural Not for profit health care only.  USAC website has info on what counties are rural Services Coverage:  Telco services only. Funding: $400 Million Annually Applications Cycle:  Annual, applications accepted all year.
    Rural Health Care program has been underutilized with significant funding not being dispersed.  In Sept 2003 approximately 2500 grantees.
    Funding Years 2000-2003 (Program as revised by FCC)
    No per location funding limit. No service limit (no longer limited to T1). Primarily mileage program (no longer Urban v Rural rates analysis). No ETC requirement. Evergreen Form 465 (no longer every year - 465 done at begining of contract); fewer calculations on form)
    Compared to ERATE:    No tech plan required.  Does not support monthly Internet access service.  Can apply all year long.Not a discount plan.
    POC: Mel Blackwell VP-RHCD

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