E-rate Modernization = Unprecedented Opportunity for Applicants
For the E-rate Budget Cycle 2026-2030, the E-rate program offers $12.4 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.
Important Eligibility Information
Eligibility information on this site is subject to the following:
This data is applicable to Funding Year 2015 through 2026 only. For eligibility information for Funding Years 2014 and prior,
please contact the Helpdesk.
The eligibility information on this site is valid for funding requests in the Category 2 funding categories only.
The eligibility information on this site is based on technical functionality of the components only.
Applicant-specific deployment factors will determine final eligibility, including how a product is used, installation location,
user population served, cost-effectiveness, and other E-rate regulatory requirements.
E-rate discounts can be provided on installed and operational components only - services for spare parts inventory or
redundant/failover components are not eligible for discounts at this time.
Remanufactured products have the same eligible percentage as the new part. For part numbers ending in -RF, please refer to
the part number of the new product for determining eligibility.
E-rate Hardware and Software Allocation Eligibility for Cisco Services
E-rate support is now available for Category 2 Funding under the sub-category of Internal Connections – this is unique to Funding Year 2026 and beyond. Previously all Cisco services SKUs were treated as Basic Maintenance of Internal Connections (BMIC), fundable for only 12 months per funding year for services between 1 July and 30 June of each respective funding year.
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.
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. Additionally, these services can be requested in multi-year terms and paid in full like licensing. Cisco Services will be treated as Internal Connections whether they are purchased along with equipment (net new purchases) or as renewals for existing E-rate eligible equipment belonging to the E-rate applicant.
With Cisco products, services generally include any unbundled service/warranty sold in addition to a product or license. A Cisco 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/or 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:
• SMARTnet Total Care - SNTC (Now known as Cisco Support Standard)
• Success Tracks (Enhanced or Signature) Previously seen as Level 1 or Level 2 Success Tracks.
o Level 1 Success Tracks (Enhanced) is now known as Cisco Support Enhanced
o Level 2 Success Tracks (Signature) is now known as Cisco Support Signature
o Software Support for licensing also falls into Cisco Enhanced and Signature Support
• Solution Support (SOLN SUPP)
• Partner Success Tracks is now known as Cisco Partner Support Standard
Notes:
• Cisco or Meraki Hardware Replacement only (RMA) Warranties separately priced (unbundled warranties) are not eligible for E-rate.
• If services/warranties are combined with online/telephonic TAC, software upgrades and patches including bug fixes and security patches, they are partially eligible after a fair value for the RMA warranty function is removed (hardware allocation).
• Hardware allocation and other costs impact the E-rate eligibility of Cisco Service SKUs. The eligibility process is shown in the Cisco Service Eligibility document. E-rate eligibility does not change from Funding Year 2025 figures. Eligibility is handled the same way for Funding Year 2026. The change is applicants can now file for services under Internal Connections instead of BMIC.
• Starting with E-rate Funding Year 2025, Cisco service SKU Levels have a standard percentage to cost-allocate the value of RMA functionality. These allocations will be available over time 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.
• Thus, the Cisco Service Eligibility figures are effective Funding Year 2025 and Beyond. If anyone needs E-rate eligibility figures from Funding Year 2024 and prior, please reach out to erate@cisco.com.