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October 1, 2026 - Special District Libraries: Speak Up to Protect E-Rate Funding

FCC Reviews Future of E-Rate Program: What Library Districts Need to Know - Reply Comments Due November 12, 2026

Key Takeaways

  • The FCC is reviewing the E-Rate program, including whether to limit or discontinue it.
  • Proposed changes include new certification, disclosure, and competitive bidding requirements.
  • E-Rate helps eligible library districts afford internet and telecommunications services, supporting public access to essential digital resources.

What’s Happening?

On August 14, the Federal Communications Commission (FCC) proposed changes to E-Rate, a program established under the Telecommunications Act of 1996. Administered by the Universal Service Administrative Company (USAC), E-Rate provides discounts on eligible connectivity services and equipment for libraries and schools. From 2022–2024, the program distributed approximately $2 billion annually.

The FCC is reviewing the program’s effectiveness, discount methodology, network usage, and statutory authority. It is also considering additional oversight, consultant certification requirements, standardized filing deadlines, and stricter competitive bidding rules.

Why It Matters to Library Districts

E-Rate helps library districts control operating costs while providing residents with internet access, digital literacy resources, educational materials, and workforce development tools.

For example, NSDA member Benbrook Library in Texas reported that E-Rate previously covered 100% of its internet costs, saving approximately $12,000 annually. In 2026, the library paid 10% of those costs and still considered the program a significant benefit.

Reducing or eliminating E-Rate could increase library district expenses and threaten access to important community services.

What Can Library Districts Do?

NSDA encourages library districts to share their experiences and document E-Rate’s impact by submitting comments to the FCC.

The initial comment deadline was October 13, 2026, and reply comments are due November 12, 2026. Verify current deadlines before filing.

Read the FCC’s proposed rulemaking