1) Internal Connections Expanded

Software-based services are now classified as Internal Connections.

Previously, these services were split between Internal Connections and Basic Maintenance of Internal Connections (BMIC), causing confusion and frequent funding denials.

For FY2026, Internal Connections now includes:

• Software-based services
• Bug fixes and security patches
• Software-based technical assistance
• Remote configuration changes

2) Basic Maintenance of Internal Connections Narrowed

BMIC configuration changes are now limited to on-site, in-person only.

For FY2026, The following services have been removed from BMIC:

• Online and telephone-based technical support
• Software upgrades
• Security patches

3) Pro-ration and Splitting Requirements Removed

• Ends the requirement to split parts of a single license or service between IC and BMIC
• Removes the requirement to break out the one-time cost of a license over several funding years
• Applicants will be required to seek reimbursement in the funding year when the costs are incurred
• Applicants that are requesting software- or remote-based services that they have previously purchased and sought pro-rated reimbursement under the prior eligibility requirements may seek support for the remainder of the contract in funding year 2026 or continue requesting pro-rated support

In two decisions released on September 30, 2025, the FCC has rescinded the use of E-Rate funds for hotspots to provide at-home internet services for students and library patrons and of Wi-Fi services to provide Internet services to students on school buses.

Bus Wi-Fi services became E-Rate eligible in FY2024 while hotspots were to become eligible in FY2025.

An Order on Reconsideration (FCC 25-62) rescinds the eligibility of off-premises use of Wi-Fi hotspots and associated wireless Internet services effective FY2025, and directs USAC to amend the FY2025 Eligible Services List and to deny pending requests.

A Declaratory Ruling (FCC 25-63) declares that the provision of Wi-Fi on school buses is ineligible for E-Rate beginning in FY2025 and directs USAC to deny pending requests for funding in FY2025 and in subsequent funding years.

1. Congress properly delegated authority to the FCC
2. The FCC's use of USAC as program administrator is permissible
3. Neither delegation violated the nondelegation doctrine
4. USF is in fact constitutional

The Wireline Competition Bureau has announced the category two multipliers and funding floors for the five-year cycle that will begin funding year 2026 and run through funding year 2030.

Download DA-25-471

SECA has filed an Ex Parte communication to the FCC with recommendations to further clarify and streamline the Category Two budget program.

Download Filing

The WCB has adopted the final eligible services list for funding year 2025.

Download FY2025 ESL

The Wireline Competition Bureau has announced the FCC Form 484 application filing window for the Cybersecurity Pilot Program as opening Tuesday, September 17, 2024 at 8 a.m. E.T. and closing on Friday, November 1, 2024 at 11:59 p.m. E.T.

Download DA 24-887 Public Notice PDF

SECA has filed comments regarding the FY2025 Eligible Services List asking the Commission to provide a Category Two funding option in support of advanced firewalls for E-rate applicants in FY2025.

Download Comments

The WCB has released a proposed draft Eligible Services List for FY2025, which amongst other things, reflects the adoption of a recent Order making off-premises use of Wi-Fi hotsposts and mobile wireless Internet access services eligible for E-Rate. The Public Notice seeks comments on adopting such changes.

Comment Date: August 30, 2024

Reply Comment Date: September 16, 2024

Download DA 24-743 Public Notice PDF