FCC Announces E-Rate Category Two Funding Floors and Multipliers For Next Funding Cycle

The Federal Communications Commission's Wireline Competition Bureau (Bureau) announced the category two multipliers and funding floors for the upcoming five-year cycle that will begin funding year 2026 and run through funding year 2030. The adjusted amounts represent a 20.7% inflation-adjusted increase to the category two multipliers and funding floors for the next five-year funding cycle from the prior funding cycle that began in funding year 2021. The E-Rate program’s eligible equipment and services (collectively “eligible services”) are divided into category one and category two services.  Category one services provide connectivity to the schools and libraries, while category two services provide connectivity within schools and libraries.  For category one services, the FCC has not set a budget, however, for category two services, there is a five-year, pre-discount budget up to which applicants may request funding. For the FY 2026-2030 cycle, the category two funding floor is adjusted from $25,000 to $30,175. For Tribal libraries, the category two funding floor is adjusted from $55,000 to $66,385. For the FY 2026-2030 cycle, the school and school district category two multiplier is adjusted from $167 per student to $201.57 per student. For the FY 2026-2030 cycle, the library and library system category two multiplier is adjusted from $4.50 per square foot to $5.43 per square foot. Applicants will be required to validate their student counts or library square footage in the first year they apply for category two support during the FY 2026-2030 cycle and their category two budget will be set for the five-year period.