The FCC released a Public Notice on June 4, 2025, updating the E-Rate Category 2 multipliers and funding floors for the upcoming five-year cycle. The new E-Rate Category 2 budgets will begin with funding year 2026 and run through funding year 2030. You can read the whole Report and Order here, or you can see our summary below. Please let us know if you have any questions.
- Funding Year 2026: All applicant budgets will reset
- There will be FIXED Five-year budget cycles (2026-2030)
- Budgets will be reset for everyone at the beginning of each five-year cycle.
- Unspent funds from one funding cycle WILL NOT roll over to a new cycle.
- Only full-time students will be counted (not part-time students).
- There will be no more estimations of enrollment for new building construction, unless you are a new school that has not yet opened.
- Schools
- The per-student budget amount will be $201.57 (pre-discount) per student starting in Funding Year 2026/2027.
- The budget will NOT be increased every year with inflation. It will only change every 5 years (at the start of the new budget cycles).
- The budgets will be determined by student count at the beginning of each five-year cycle. You can update your student counts or library square footage if it increases during the five-year cycle.
- The per-student budget amount will be $201.57 (pre-discount) per student starting in Funding Year 2026/2027.
- Libraries
- A single pre-discount multiplier of $5.43 per square foot will be used for all libraries regardless of geography.
- There will be FIXED Five-year budget cycles (2026-2030)
- The minimum Category 2 budget for each school and library will be $30,175 (pre-discount) starting in 2026/2027. The minimum Category 2 budget for Tribal Libraries will be $66,385 (pre-discount).
If you find the E-Rate program too time consuming, too confusing or too complicated, we can help. Please do not hesitate to reach out and one of our consultants will be in touch with you within 24 hours.