Most E-Rate Funds Spent in Highest-Need Areas, Researcher Says

In fiscal year 2024, the program spent 62 percent of funding on broadband subscriptions and 35 percent on networking gear

Most E-Rate Funds Spent in Highest-Need Areas, Researcher Says
Photo by Priscilla Du Preez used with permission

WASHINGTON, Aug. 17, 2026 – Most funds under the Federal Communications Commission’s E-Rate program go to schools and libraries in lower income areas, a recent analysis found.

The program provides discounts on broadband and telecom services to schools and libraries, and spends about $2.5 billion annually. The program provides discounts to participants based on the percentage of students that are eligible for free or reduced-price lunch.

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