E-rate

E-Rate is the commonly used name for the Schools and Libraries Program of the Universal Service Fund, which is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (FCC). The program provides discounts to assist schools and libraries in the United States to obtain affordable telecommunications and Internet access. It is one of four support programs funded through a Universal Service fee charged to companies that provide interstate and/or international telecommunications services.

The Schools and Libraries Program supports connectivity - the conduit or pipeline for communications using telecommunications services and/or the Internet. Funding is requested under four categories of service: telecommunications services, Internet access, internal connections, and basic maintenance of internal connections. Discounts for support depend on the level of poverty and the urban/rural status of the population served and range from 20% to 90% of the costs of eligible services. Eligible schools, school districts and libraries may apply individually or as part of a consortium.

Applicants must provide additional resources including end-user equipment (e.g., computers, telephones, etc.), software, professional development, and the other elements that are necessary to utilize the connectivity funded by the Schools and Libraries Program.

Yearly requests for E-Rate funding almost triple the FCC's $2.25 billion limit. At the beginning of 2005, over 100,000 schools had participated in the program. In 2003, nearly half of the funding went to schools where more than half of the students receive reduced price lunches.

Broadly, US Department of Education Surveys show that between 1994 and 1999, Internet access in public schools rose from 35% to 95%, and access in classrooms rose from 3% to 63%.

Some studies have suggested that the E-rate program has had a positive impact on schools. A 2006 Case study performed by the Benton Foundation found that E-Rate funding had a direct impact on classroom Internet connectivity in four cities. An evaluation of E-Rate in California by Goolsbee and Guryan showed a 68% increase in classroom connectivity per teacher but could not identify any impact on student achievement. A study concluded in 2005 by a University of Texas student under the supervision of Economics Professor Mike Ward, using regression analysis, showed the E-Rate program in Texas school districts to have positive effect on factors like test scores, graduation rates, and college admission rates.

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