Wi-Fi Hotspots Approved for E-Rate Program Support Beginning FY2025!
The Federal Communications Commission (FCC) recently approved a Final Report and Order making Wi-Fi hotspots eligible for E-Rate beginning in FY2025. Schools and libraries will now be permitted to purchase Wi-Fi hotspots and services for the purpose of lending them to students, school staff, and library patrons for at-home educational use. With the ending of the Emergency Connectivity Fund (ECF), the goal is that this funding will continue the access provided by the ECF.
Are you interested in applying for at-home hotspots for your school or library? Here's what to know about this new E-Rate funding opportunity from the approved Order:
Funding & Timeline
This funding, like school bus Wi-Fi, will be part of E-Rate Category One.
Unlike other Category One expenses, however, there will be a fixed three-year budget cycle for hotspots covering FY2025-FY2027.
Like Category Two budgets, applicants will get a pre-discount budget (based on a formula) to use over three years, and will get reimbursed based on their discount percentage. Applicants can use a max of 45% of their budget in any given year.
You can begin to apply for these funds for Funding Year 2025 (which covers July 1, 2025, to June 30, 2026). The E-Rate Form 470 is currently being updated to account for hotspots, and we hope it will become available in September 2024.
Rules and Compliance Requirements
Hotspots must be primarily for educational purposes. Applicants must have an Acceptable Use Policy in place.
Record keeping requirements.
No duplicate funding (“double dipping”).
Bans on the resale or transfer of equipment before three years.
Requirements to prevent “warehousing” and minimize non-use of hotspots.
CIPA compliance required.
Head Start, Pre-K, and Kindergarten students are ineligible.
Application Process
The application process will be just like the E-Rate Category One process, starting with the completion of the Form 470, followed by competitive bidding, the Form 471, and the Form 486.
Current E-Rate audit and review processes will be utilized.
The FY2025 Eligible Services List is being revised to include these services and equipment.
Eligible Services
Monthly hotspot services for off-premises use:
This has a pre-discount cap of $15 a month per hotspot service plan. Anything over $15/month is the responsibility of the applicant.
Taxes and state fees are not included in the cap and must be listed separately.
Hotspot hardware for off-premises use:
This has a pre-discount cap of $90 per hotspot hardware and must be associated with a line of service.
Delivery fees, activation and configuration costs are included in the cap.
Ineligible Services
Monthly data for Wi-Fi aircards in laptops or tablets.
Multi-functional devices (smartphones, PCs, notebooks, tablets, customer premises equipment, routers or switches, and wireless access points, etc.).
Wireless technologies (other than mobile broadband).
CIPA filtering costs.
Charges that are being or have already been discounted through another funding source (see “double dipping” comment above).
This order is part of a greater initiative to expand the E-Rate Program, called Learn without Limits. As part of this three-part initiative, E-Rate funding is also being allocated for school bus Wi-Fi and the Cybersecurity Pilot Program. For more details and up-to-date announcements about school bus Wi-Fi and hotspots, check out our dedicated webpage. For the Cybersecurity Pilot Program, check out our dedicated Pilot program webpage.
Click here to view the FCC Fact Sheet on Off-Premises Use of Wi-Fi Hotspots and Services.
If you have any questions, including assistance calculating your budget, or if this is something you may be interested in applying for, please let us know by clicking the button below. For help with applying for E-Rate funding, telecom optimization audits, or telecom project management, reach out to us at HWC Consultants!