USACE-RateApplicant ProcessBefore You BeginFiber – Summary Overview
Additional Discount to Match State/Tribal Funding for Special Construction

Additional Discount to Match State/Tribal Funding for Special Construction

If a state provides eligible schools and libraries with funding for special construction charges for high-speed broadband that meets the FCC’s long-term connectivity targets, the E-Rate program will increase an applicant’s discount rate for these charges up to an additional 10 percentage points to match the state funding on a one-to-one dollar basis.

For Tribal schools and libraries, the E-Rate program will also match special construction funding provided by states, Tribal governments, or other federal agencies on a one-to-one basis, up to an additional 10 percentage points for the applicant’s discount rate. Total E-Rate support with matching funds may not exceed 100 percent.

Example

A school district with a 70 percent discount rate applies for E-Rate discounts for special construction charges associated with a self-provisioned network that costs $100,000. The state provides funding for 10 percent of the special construction costs. The E-Rate program will match that state funding on a one-to-one dollar basis, adding 10 percentage points to the school’s E-Rate program Category 1 discount rate percentage.

The result is that the out-of-pocket cost for the school district is reduced to $10,000 because the state is providing $10,000 (10 percent state funding) and the E-Rate program is providing $80,000 (70 percent E-Rate discount rate + 10 percent E-Rate matching funds).

Using the same example above, if the state provided funding for 25 percent of the special construction costs, the E-Rate program would cap the additional discounts provided to match that funding at five percent. This is because the total amount of support, including matching funds, may not exceed 100 percent: (e.g., 70 percent E-Rate discount rate + 25 percent state funding + 5 percent E-Rate matching funds = 100 percent).

Eligible State/Tribal Funding

For most schools and libraries, the E-Rate program will only match funding for special construction projects if the source of the funding is the state (i.e., funding authorized directly by a state legislature or one or more state agencies).

For Tribal schools and libraries, E-Rate will match funding from a state, Tribal governments, or other federal agencies. In all cases, E-Rate matching funds will only be approved if the special construction project will provide high-speed broadband connections that meet the FCC’s connectivity targets adopted in the First 2014 E-Rate Order and may not be applied to any other cost.

Applicants seeking additional E-Rate funding to match state funding for special construction must submit information with their FCC Form 471 application filing that USAC will use to determine:

  • Whether the state funding is from an eligible source;
  • Whether any terms and conditions associated with the state funding are in conflict with E-Rate rules;
  • Whether the appropriate calculation of the additional E-Rate discount is correct, if any; and
  • Whether the project meets the Commission’s connectivity targets.

States with Current and Prior Eligible Funding

Based on information received about the following state broadband programs, some of the programs identified below would qualify as eligible sources of matching funds. These funds would qualify for additional E-Rate matching funds for special construction projects that meet the FCC’s long-term connectivity targets. We have also included states that once qualified as eligible sources of matching funds but are no longer eligible.

Please note that the final approval of E-Rate state matching funds is dependent upon compliance with program rules and a detailed review of the special construction funding request.  Applicants should work with their states to confirm the availability of matching funds and USAC will review matching programs during application review.

Arizona California Colorado Florida Idaho
Illinois Indiana Kansas Maine Maryland
Massachusetts Michigan Missouri Montana Nebraska
Nevada New Hampshire New Mexico New York North Carolina
Oklahoma Oregon Texas Virginia Washington
Wisconsin

 

  1. Arizona Universal Service Fund (AUSF) – On March 14, 2017, the Arizona Corporation Commission approved changes to the Arizona Universal Service Fund to provide E-Rate eligible schools and libraries with access to funds to assist with the payment of special construction charges for broadband. For additional information, see the Arizona Broadband Expansion Fund website.
  2. California Broadband Infrastructure Grant Program – In June 2014, the California State Legislature allocated funding to enhance broadband infrastructure for California’s public schools. The legislature directed the California K-12 High Speed Network (K12HSN) to distribute network connectivity infrastructure grants and produce a report on statewide connectivity infrastructure.  Note: applicants must join the state network, Corporation for Education Network Initiatives in California, or CENIC, which applies for E-Rate program funding on behalf of K12HSN. For additional information about the program, visit the K12HSN Broadband Grant website, which includes FAQs, past webinars, and fact sheets. The source of the funding for this program can be found by reviewing the state legislative information.
  3. Colorado – Building Excellent Schools Today (BEST) – BEST was established in 2008 with the signing of the Public-School Facilities Act codified at Colo. Rev. Stat. §22-43.7. BEST provides an annual amount of funding in the form of competitive grants to school districts, charter schools, institute charter schools, boards of cooperative educational services, and the Colorado School for the Deaf and the Blind. BEST funds can be used for the construction of new schools as well as for improvements to existing school facility systems, structures, and broadband infrastructure. For more information on the BEST program, go to BEST Grant Program.
  4. The Florida Digital Classrooms Program (DCP) and DCP Allocation – In 2016, Florida established the DCP “to support school district and school efforts and strategies to improve outcomes related to student performance by integrating technology in classroom teaching and learning.” Section 1011.62(12)(b) permitted E-Rate eligible schools to request state matching funds for broadband special construction infrastructure projects. It requires that project plans include plans to comply with the rules of any federal programs that support the projects. For additional information about DCP, see the 2016 version of the Florida Statutes or the Florida Department of Education website.
  5. Idaho Broadband Infrastructure Improvement Grant (BIIG) Program –In 2016, Idaho Senate Bill 1034 created the BIIG Fund to allow an existing allotment of $2.7 million to be used to expand broadband Internet connectivity by creating a state match for E-Rate eligible schools paying special construction costs. For additional information on this legislation, see Idaho 2017 Legislation and Idaho Code §33-910 (2016).
  6. Illinois Classroom Connectivity Initiative  – In 2016, Illinois created the Illinois Classroom Connectivity Initiative to close the broadband gap for schools in the state. Illinois provided funding to assist school districts with special construction for broadband expansion. The state distributed the funds to school districts that received approval for broadband expansion funding under the E-Rate program. School districts without high-speed internet access received priority in the distribution of these funds. The state’s Learning Technology Centers are available to assist school districts with applications.  Additional information regarding the Illinois Classroom Connectivity Initiative can be found on the Illinois State Board of Education website at https://www.isbe.net/Pages/Broadband-Information.aspx. The legislation can be found under Public Act 100-0586 at http://www.ilga.gov/legislation/publicacts/100/PDF/100-0586.pdf.
  7. Indiana – The Indiana Department of Education State Connectivity Grant program assists school districts with their annual connectivity costs. The grants are funded per Indiana Code 4-34-3-2, School and Library Internet Connection. The fund dollars come out of the Build Indiana Fund, which has a total working budget of $5 million of which schools receive $3,415,000 and Libraries receive $1,585,000. More information regarding the Indiana Code 4-34-3-2, School and Library Internet Connection can be found under House Bill 1393. For more information regarding the Indiana Department of Education State Connectivity Grant program, please contact the Indiana Department of Education.
  8. Kansas – The Kansas Connect and Learn Initiative is a partnership that was launched to improve statewide broadband connectivity at an affordable cost. The Kansas Legislature allocated $300,000 in state matching funds that can be used by eligible schools and school districts participating in the E-Rate program. These matching funds were to be awarded by the Kansas Department of Education during the state’s fiscal year 2019. For additional information, please visit the Kansas State Department of Education website. The legislation establishing the funding for this program can be found here.
  9. Maine Telecommunications Education Access Fund (MTEAF) – The MTEAF, a state universal services fund managed by the Maine Public Utilities Commission, funds telecommunications services, Internet access, internal connections, computer, training, and content for K-12 schools and public libraries. The MTEAF funds the Maine School and Library Network (MSLN), a statewide network that serves public and private K-12 schools, public libraries, and also includes higher education libraries. The combined funding from the MTEAF, E-Rate program, and a nominal fee of one dollar per pupil per year from member K-12 schools provides broadband, related management, and support services to Maine’s K-12 schools and public libraries. Currently, the network and all contracting and budget management is done through Networkmaine, a unit of the University of Maine System (UMS). For additional information about the MTEAF program, visit the Networkmaine website. The source of the funding for this program can be found by reviewing the state legislative information.
  10. Maryland Construction Improvement Program (CIP) – On April 26, 2017, the Maryland Board of Public Works approved (see pg. 13) changes to the Code of Maryland Regulations (originally COMAR 23.03.02.11 and COMAR 23.03.02.12, since recodified to COMAR 14.39.02.11 and COMAR 14.39.02.12, respectively) allowing school districts to use CIP funds for special construction projects to connect E-Rate eligible schools to high-speed broadband internet under the E-Rate program. For additional information, funding details, and program requirements, contact the Maryland Capital Improvement Program.
  11. Massachusetts Digital Connections Partnership Schools Grant – The Massachusetts Information Technology and Innovation Act of 2014 allocated $38 million in bond-funded matching funds to enhance K-12 infrastructure within the state. The state match provides funding for infrastructure (Wi-Fi and broadband). School districts receiving the grants were expected to fund (from either a public or private source) between 30-70% of the total project and were required to apply for E-Rate funding. For additional information on the Digital Connections Partnership School Grants, visit the Office of Digital Learning’s Digital Learning & Technology page. The source of the funding for this program can be found by reviewing the state legislative information.
  12. State of Michigan E-Rate Enhancement Special Construction Matching Fund – The Michigan Department of Education (MDE) facilitates the allocation of $5 million for the purposes of leveraging additional dollars through the federal E-Rate program for special construction builds upgrading district, intermediate school district (ISD), public school academy (PSA), and library broadband connections. These state general fund dollars will be granted directly to eligible E-Rate applicants from the MDE. For additional information regarding the State of Michigan E-Rate Enhancement Special Construction Matching Fund, please visit the MDE website.  MDE awarded a consolidation grant to Shiawassee Regional Education Service District in the amount of $49,853,722 to connect schools to the Michigan Statewide Educational Network (MiSEN).  MiSEN will administer the grant funding to assist schools with E-Rate special construction projects to secure high-speed broadband connectivity.  These funds were sourced from The Michigan State School Aid Act of 1979, section 388.1612c, which created Consolidation Incentive Payments. Consolidation Incentive Payments, commonly called Section 12c funds, support initial costs related to the consolidation of services that are identified as a result of a feasibility study or analysis conducted by a district or intermediate district in the manner described under Section 388.1611x.  For more information on this grant please see MiSEN Connectivity Grant.
  13. Missouri Connect & Learn Initiative – The Department of Elementary and Secondary Education (DESE) distributed funds that E-Rate eligible schools could use as state matching funds. Funds can be used to support infrastructure projects that would provide high-speed Internet access to eligible schools. In the 2018 Fiscal Year budget, the Missouri Legislature appropriated $6 million to DESE to be used as state matching funds for E-Rate eligible schools for fiscal year 2018. For additional information on the initiative, visit Missouri Connect & Learn Initiative.
  14. Montana – House Bill 390 was signed into law effective May 3, 2017 and appropriated $1 million a year to provide schools with funds to be used for broadband special construction projects eligible for state matching funds via the Federal E-Rate program. These funds could be used by schools for projects where the school would partially or completely own the resulting network. For additional information on this legislation, please see House Bill 390 and Mont. Code Ann. §20-9-516.
  15. Nebraska Universal Service Fund (NUSF) – On May 19, 2020, the Nebraska Public Service Commission approved changes to the Nebraska Universal Service Fund to provide E-Rate eligible schools and libraries with access to funds to assist with the payment of special construction charges for broadband. See the NUSF Order and NUSF-117 website for additional information.
  16. Nevada Connect Kids Initiative – Since 2017, the Nevada Legislature has appropriated $1 million each year as a State Match for special construction related expenses for E-Rate eligible schools and libraries, including Tribal schools and libraries. The Office of Science, Innovation and Technology (OSIT) manages the funds and works with school districts and libraries to identify needs and apply for funding. Additionally, on April 7, 2022, the Nevada Interim Finance Committee approved an additional $4,181,994.50 for special construction. More information about the program may be found on the OSIT website.
  17. New Hampshire Public School Infrastructure Fund – In New Hampshire, part of the FY2017 budget surplus, if available, would fund public school infrastructure projects, including one-time fiber infrastructure upgrades for school buildings. Funding decisions would be determined by the Governor in consultation with the newly established Public School Infrastructure Commission. For additional information on this fund, please visit Public School Infrastructure Fund.
  18. New Mexico Library Infrastructure Fund – The New Mexico Library Infrastructure Fund was established in the 2018 New Mexico Legislative Session in Senate Bill 94. The funding is available to public libraries, public school libraries, academic libraries, and tribal libraries statewide. Funds can be used for various improvement expenditures including broadband special construction projects that are eligible for state matching funds via the Federal E-Rate program. The amount of $4 million was available for non-tribal public libraries, and the amount of $750,000 was available for tribal libraries for broadband infrastructure revitalization. For more information on 2018 General Obligation Bonds for Public and Tribal Public Libraries, visit the New Mexico State Library website.
  19. New Mexico School Connectivity Broadband Deficiencies Fund – In New Mexico, the Public-School Capital Outlay Council (PSCOC) is authorized to spend up to $10 million annually for an education technology infrastructure deficiency correction initiative. The source of the funding for this program can be found by reviewing the state statute and legislation.
  20. New York State Smart Schools Bond Act – New York State approved the Smart Schools Bond Act (SSBA) – an initiative that would finance educational technology and infrastructure and provide access to the latest technology and connectivity. The Smart Schools Commission released a final report in Fall 2014, outlining how school districts could invest the money allocated to each district. Under the proposal, school districts could use bond revenues to purchase educational technology equipment, including high-speed broadband or wireless internet. For additional information, visit the Smart Schools homepage. To review the Smart Schools Bond Act guidance for school districts, visit New York’s Educational Management Services Smart Schools page and Implementation Guidance. The source of the funding for this program can be found by reviewing the state legislative information.
  21. North Carolina School Connectivity Fund – The North Carolina State Board of Education approved the School Connectivity Initiative (SCI) Implementation and Operating Plan on August 2, 2007. Within the SCI program are five individual projects addressing Connectivity, Core Services, Collaboration, Organization, and Funding. The SCI supports the enhancement of the technology infrastructure for public schools. These funds will be used for broadband access, equipment, and support services that create, improve, and sustain equity of access for instructional opportunities for public school students and educators. The SCI program is a recurring appropriation. The source of the funding for this program can be found by reviewing the state legislative information.
  22. Oklahoma Universal Service Fund (OUSF) – The OUSF was created by the Oklahoma Telecommunications Act of 1997. Section 139.106(B) of that Act provides that “[t]he OUSF shall be funded and administered to promote and ensure the availability of primary universal services, at rates that are reasonable and affordable and Special Universal Services, and to provide for reasonably comparable services at affordable rates in rural areas as in urban areas.” In 2016, the Oklahoma legislature adopted Section 139.109.1, which permits E-Rate eligible schools and libraries to request state matching funds for broadband special construction infrastructure projects through the OUSF. For additional information about the OUSF, visit the Oklahoma State Courts Network or see OUSF Tips.
  23. Connecting Oregon Schools Fund – The Connecting Oregon Schools Fund (COSF) was established to provide state matching funds to the federal E-Rate program for Broadband Infrastructure Special Construction projects. COSF received $17.5 million in Lottery Bond funding in the spring 2023 bond sale. These funds can be used to provide grants for construction projects in E-Rate Funding Years 2024 and 2025. For additional information regarding the program, please visit the Connecting Oregon Schools Fund Program website.
  24. Texas E-Rate Classroom Connectivity – Per the Texas Legislative Budget Board website, out of the Economic Stabilization Fund No. 599 appropriated in Strategy B.2.1, Technology and Instructional Materials, the Commissioner can distribute $25 million to school districts and charters for qualifying special construction school projects under the E-Rate State Matching Provision or any other similar provision under E-Rate to ensure the receipt of the federal E-Rate Infrastructure Program available in fiscal year 2018. The full appropriations bill can be seen at the Texas Legislative Budget Board website, and the E-Rate Classroom Connectivity funding can be found on page III-22 as Rider 69. This program ended for Funding Year 2019 and no state matching funds for E-Rate have been made available for Funding Years 2020 and forward.
  25. Virginia Public School Authority (VPSA) – School Educational Technology Notes – VPSA distributes funds that E-Rate eligible schools can use as state matching funds. Funds can be used to support infrastructure projects that will provide high-speed Internet access to eligible schools. For additional information about VPSA, visit the VPSA website. Information relating to the budgeting source of the funding for this program can be found by reviewing the state legislative information.
  26. Washington – The Digital Learning Access Grant Program was established to improve statewide broadband connectivity at an affordable cost to schools. The 2018 legislature appropriated $900,000 for fiscal year 2019 to be used by schools to support broadband connectivity and information technology infrastructure. This included distribution to school districts for qualifying broadband special construction school projects under the E-Rate State Matching Provision. These funds were managed by the Office of Superintendent of Public Instruction. Fiscal Year 2019 was the final year for districts to access state source funds from this program. The legislation establishing the funding for this program can be found in Senate Bill 6032. The appropriation language can be found in Section 501, subsection 67, on page 301.
  27. Wisconsin Technology for Educational Achievement (TEACH) – TEACH is a program managed by the Wisconsin Department of Administration, Division of Enterprise Technology and subsidizes costs associated with providing telecommunications access to eligible schools, libraries, and educational institutions. The language posted under Section 16.997 Educational telecommunications access program put into effect program rules. Funds awarded from TEACH could be used for broadband special construction projects that were eligible for state matching funds via the E-Rate program. For additional information about the TEACH program, visit the Wisconsin TEACH website.