The federal E-Rate program helps K–12 schools and libraries get affordable broadband and network technology by funding eligible services and equipment (usac.org). In plain terms, the U.S. government picks up a big portion of the bill for things like your Internet connection (Category 1) and the internal wiring, Wi-Fi, switches, and other gear that distribute that Internet throughout the school (Category 2). Every few years, the FCC resets the funding budgets, so it’s a great time to plan.
Starting in Funding Year (FY) 2026, a new five-year E-Rate cycle begins. That means everyone’s Category 2 budgets will reset, based on the updated funding rules and formulas (usac.org). In each five-year cycle, a school or district’s total available Category 2 (C2) budget is calculated from its student count and the federal multiplier (plus a minimum “floor” amount for small schools). For example, in the 2021–2025 cycle, each school got $167 per student (and at least $25,000 total). In the new 2026–2030 cycle, those values increase: the multiplier is $201.57 per student and the funding floor is $30,175 for each school (usac.org). Bottom line: your school will have more Category 2 dollars to spend in 2026–2030 than before.
Plan your network upgrades carefully. E-Rate Category 2 pays for anything that moves the Internet inside your buildings – think cabling, network racks, switches, routers, firewalls, wireless access points, UPS power backups, and the software that runs or secures them. With higher budgets in the new cycle, now is the time to map out your 3–5 year network roadmap and lock in those improvements.
For example, consider whether you need new Wi-Fi access points, cable runs to classrooms, upgraded switchgear, or better power/battery backup for servers. Do you have network closets full of tangled cables and unlabeled gear? Clean-up and organization racks make future upgrades and troubleshooting much faster.
Tip: Start by auditing your current infrastructure. Inventory all your network gear and cabling. Then prioritize critical upgrades that align with instructional goals.
Maximize every dollar. Because the cycle resets in 2026, make sure to use all of your remaining FY2021–2025 C2 budget on eligible projects before the deadline. Then, when the new cycle starts, you’ll have a clean slate. It’s like getting bonus tech money every five years! Also, while Category 2 is on a five-year clock, Category 1 (Internet access and service contracts) is funded annually.
In general:
Competitive bidding: Post your technology needs (Form 470) and wait the required 28+ days for bids.
Choose a service provider: Select the best bid and sign a contract (later file Form 471). Veeya’s school IT experience ensures you get high-quality service at the right price.
File applications: Submit Form 471 by the deadline (usually winter/early spring). This is when you lock in your funding requests.
Implementation: After approval, the work can begin (install gear or start service). Keep receipts and documentation.
Invoicing: Pay the invoices and file with USAC to receive reimbursements (or have vendors bill USAC directly).
It sounds like a lot, but you don’t have to do it alone. Veeya specializes in school technology. Contact us early in the process to help plan for your needs. Then we recommend hiring an e-Rate Consultant to help plan your bids, write applications, and manage approvals.
Get started today: Make a list of the tech improvements your school needs most, and let E-Rate make them affordable. Dreams do come true! Download our free E-Rate e-book guide and reach out to us. With the right strategy, you can maximize your funding, upgrade your network, and support your students’ digital learning – all within the new five-year cycle.
References: Updated E-Rate rules and budgets are detailed by USAC, including the FY2026–2030 funding floor and multipliers. For a quick overview of eligible services and process, see the official E-Rate program site https://www.usac.org/e-rate/
Disclaimer
Veeya is a vendor participating in the e-rate process. The information presented in this book is intended for general educational purposes only and to help schools. It is based on publicly available research, content gathered from the official USAC (Universal Service Administrative Company) website, AI-assisted analysis, and the author's professional experience. While every effort has been made to ensure the accuracy and relevance of the material at the time of publication, E-rate regulations and processes may change.
This article is not intended to serve as official legal, financial, or E-rate consulting advice. For specific guidance related to your school's unique circumstances or to ensure full compliance with E-rate requirements, it is strongly recommended that you consult with a certified E-rate consultant or professional.
The author and publisher disclaim any liability for any loss or damage resulting from reliance on the information contained in this blog.