To be considered eligible for E-Rate funding, four requirements must be met:

1. Must be an eligible product or service
2. Must be used by an eligible entity
3. Must be used at an eligible location
4. Must be used for an eligible purpose

USAC publishes an Eligible Services List for each funding year. This list indicates the products and services that can receive funding, and the acceptable uses for those products and services.

Eligible products and services are designated as either Category One or Category Two.

Category One Services        LEARN MORE Learn more about Category One Services

• Data Transmission Services and Internet Access
• Voice Services (phasing out of the program)

Category Two Services        LEARN MORE Learn more about Category Two Services

• Internal Connections
  cabling, routers, switches, and other equipment needed to deliver broadband
• Basic Maintenance of Eligible Internal Connections
  repair, upkeep, maintenance, technical support
• Managed Internal Broadband Services

Eligible entities include public and most non-profit K-12 schools as well as all public and many private libraries.

To be eligible for E-Rate funding, a school must meet the statutory definition of elementary or secondary school found in the No Child Left Behind Act of 2001 (20 U.S.C. § 7801(18) and (38)):

• An elementary school is a non-profit institutional day or residential school, including a public elementary charter school, that provides elementary education, as determined under state law.
• A secondary school is a non-profit institutional day or residential school, including a public secondary charter school, that provides secondary education, as determined under state law, except that such term does not include any education beyond grade 12.

In Maine, the Maine Department of Education must consider that it is an approved school for it to be eligible to participate in the E-Rate program.

Additionally, a school is ineligible for E-Rate if:

• it operates as for-profit businesses
• it has endowments exceeding $50 million

To be eligible for E-Rate funding, a library must meet the statutory definition of library or library consortium found in the 1996 Library Services and Technology Act (Pub. L. 104-208) (LSTA) and must be eligible for assistance from a state library administrative agency under that Act.

In Maine, the Maine State Library must consider that it is an approved library for it to be eligible to participate in the E-Rate program.

Additionally, a library is ineligible for E-Rate if:

• it operates as for-profit businesses
• it does not have a budget that is completely separate from any school (e.g. elementary and secondary schools, colleges and universities)

Eligible locations are considered to be locations that are school or library property. School or library property includes a district office or similar facility, but does not include businesses or organizations separate from a school or library organization. For example, the facilities of a business that has contracted with a school to provide bus service do not constitute a location eligible for E-Rate support.

Services must not only be eligible, but must also be delivered to eligible locations and used for eligible purposes. The customary work activities of school or library employees and customary activities that occur on school or library property are presumed to be integral, immediate, and proximate to the education of students or the provision of library services to library patrons.