E-rate Modernization = Unprecedented Opportunity for Applicants
The E-rate program offers $8 billion in category 2 discounts to K-12 schools and libraries over the 5-year budget cycle. Because of the E-rate Modernization Order and the additional funds, it is now possible for all schools and libraries that qualify for the E-rate program to use some funding for their digital initiatives.
Eligibility information on this site is subject to the following:
E-rate support is available for Category 2 Funding under the sub-category of Internal Connections. Effective with E-rate Funding Year 2026, the FCC proposed to treat all currently eligible software- or remote-based services, including bug fixes, security patches, software-based technical assistance, and configuration changes the same. Thus, applicants request all software- and remote-based services with the internal connections equipment that they support. This means, services previously included under Category 2 Funding as Basic Maintenance of Internal Connections (BMIC), will now be treated as Internal Connections (IC) under Category 2 Funding. Essentially, all Cisco service SKUs will now be treated as Internal Connections contracts just like right-to-use licensing software is. This new ruling will allow E-rate applicants to request funding for E-rate eligible or partially eligible service SKUs during the first year of the funding request.
With Cisco products, services generally include any unbundled service/warranty sold in addition to a product or license. A Cisco or Meraki service is normally a combination of TAC support and RMA (return of product or service). RMA is considered an ineligible “unbundled warranty” by the E-rate program. When Cisco sells a hardware Service/Warranty, we extend TAC support and hardware return to the customer. There are several types of services in Cisco. Service SKUs are categorized by type and service level. Within the E-rate space, the most common Cisco service program types are:
Notes:
For E-rate Funding Year 2025, Cisco service SKU Levels will have a standard percentage to cost-allocate the value of RMA functionality. These allocations will be available on the E-rate Helpdesk portal database and will be linked directly to their supported product. In the interim, please use the following guidance to assist your organization with Cisco Service Eligibility.