Let’s Begin E-rate Funding Year 2025!

October 21, 2024

I’m so excited to announce the beginning of the E-rate Funding Year 2025 application process!   Below is a summary of the changes you can expect for FY 2025, important reminders, and a helpful “what to do by what date” chart at the bottom.  Many of these changes and updates were also presented in the FY 2025 Veterans Webinar.

Also, if you’re new to E-rate or need a refresher, please be sure to register for one of the upcoming Beginners’ Trainings being held this week:  https://e-ratepa.org/?page_id=745.

  1. Off-Campus Hotspot Eligibility

Off-campus hotspots and related mobile wireless Internet services are eligible for Category 1 E-Rate funding beginning in FY 2025.  Applicants are limited to device/service plan funding caps and all equipment and services are subject to the E-rate competitive bidding process.  Complete details are available at: https://e-ratepa.org/wp-content/uploads/2024/10/Hot-Spot-Lending-Webinar-Oct-2024-PA.pdf  and on USAC’s site.   The Form 470 has been revised to include options for this equipment/service option and screenshots are available on slide 4.  Also, I created a calculator for determining your 3-year hotspot budget (and 45% calculation) and it’s available at:  https://e-ratepa.org/wp-content/uploads/2024/10/Hot-Spot-3-Year-Budget-Calculation-Worksheet-.xlsx.

  1. School Bus Wi-Fi Eligibility
    Beginning in FY 2024, school bus wi-fi equipment and service became E-rate eligible.  The FY 2025 Form 470 has been modified to include new Category 1 options for School Bus Wi-Fi Equipment and School Bus Wi-Fi Internet Service (must be requested separately).  A School Bus Wi-Fi Guide is available at:  https://e-ratepa.org/wp-content/uploads/2024/10/School-Bus-Wi-Fi-Eligibility-and-Filing-Guide-1.pdf.  Also, helpful RFP templates are available at:  https://e-ratepa.org/?p=35259. 

  2. Category 2 Budgets – What’s Remaining for Your School or Library
    FY 2025 is the 5th and final year of the current 5-year Category 2 budget which spans FY 2021 – FY 2025.   To view your remaining C2 budget for FY 2025 (as of 9/17/2024), see: https://e-ratepa.org/?p=35679.  If you update your C2 enrollment in EPC, the C2 budget will change and the results can be found on USAC’s C2 Budget Data Tool at: https://opendata.usac.org/E-rate/E-Rate-C2-Budget-Tool-FY2021-/8z69-hkn7.  Simply use the filter on the right side of the page.
    1. Updating Category 2 Enrollment Data/Library Square Footage in EPC
      The FY 2025 ‘Administrative Window’ is the period when schools and libraries update their schools’ enrollment and NSLP/CEP data or library’s square footage.  If your school participates in NSLP or CEP, you may wish to wait until the PDE enrollment data is released mid-December before deciding whether to update your C2 enrollment budget and requesting a C2 budget recalculation with USAC.  However, if you would like to update your C2 data in EPC now, here’s a guide to help:  https://e-ratepa.org/wp-content/uploads/2024/10/Entering-Enrollment-NSLP-Square-Footage-in-EPC-FY-2025.pdf.
    2. Have Unspent Category 2 Funding from FY 2021 – 2024?
      If you were committed funding in Funding Years 2021, 2022, 2023 or 2024 and your expenses were not as high as you anticipated or you didn’t need the funding, you may want to file a Form 500 to cancel or reduce the FRN.  Why?  Because these remaining funds will be put back into your Category 2 budget for the remaining 2 years of this C2 budget cycle.  Please note:  If you don’t use the funding and don’t file the Form 500, the funds aren’t automatically reinstated into your account.  You must take this proactive step to reduce the funding commitment to get the funds back into your C2 budget.  To learn more about returning unused C2 funding from prior years, see:  https://e-ratepa.org/?p=35679.
  1. USAC Moving FRN Status Tool Into Open Data

For many years, applicants and service providers have used the FRN Status Tool (FST) to download FRN details by funding year.  Soon, USAC will be decommissioning this tool and requiring everyone to use Open Data instead.  Open Data contains about every piece of application data since 2015, and requires a bit more filtering to obtain the data you need.  There are OD “Tools” that have pre-determined datasets, but all E-rate datasets also are available.  The tool most similar to the FST is: https://opendata.usac.org/E-Rate/E-Rate-FRN-Status-Tool-FY2016-/8xzh-ytkh.  I encourage you to become familiar with Open Data and the tools available, and watch USAC’s OD Training Webinar. 

  1. EPC Log-in Errors and How to Resolve

In the last few months, applicants have been reporting they are receiving the following error message when logging into EPC after they go through multi-factor authentication:  “AuthSDKError: Unable to parse a token from the URL”.   We have found the three possible ways to overcome this error are:

1)  Cleare your cache.

2)  Select Control F5 when you receive the error.

3)  Enter this USL after receiving the error and it often takes you directly into EPC without requiring a new authentication – https://portal.usac.org.

  1. Changing EPC Account Administrators/Adding New EPC Users
    If you need to change your EPC Account Administrator or Add/Remove EPC Users, be sure to refer to my EPC Guide:  https://e-ratepa.org/wp-content/uploads/2014/03/EPC-How-To-Guide-as-of-Nov-2023.pdf.  Also, if you need any new E-rate contacts added to the PA E-rate Listserve, please e-mail me their contact information.
  1. FY 2025 Form 471 Filing Window Dates
    The FCC has not yet released the official FY 2025 Eligible Services List (ESL) which means that USAC cannot yet announce the official Form 471 Filing Window dates.  However, they indicated recently that they expect the window dates to be very similar to last year, which means it would likely open around the second week in January and close around mid-late March 2025.  For a suggested FY 2025 bidding/filing timeline, see the chart at the bottom of this message. 
  2. Updating Entity Profiles in the “Administrative Window”
    The “Administrative Window” is the period before the 471 application window, during which time schools update their enrollment and NSLP (or CEP%) data in each school’s EPC profile, update their Category 2 enrollment data (if it increased), and libraries update their square footage (if it changed).  The Admin Window is now open and is expected to close the first week in January.  Schools are required to update their EPC profiles with their fall 2024 data.   In mid-December I will send to the listserve a spreadsheet from PDE that provides the enrollment, NSLP (or CEP%) data along with a guide that will walk you through the process for updating each school’s EPC profile. 
  3. Unsure Whether You Need to Rebid Category 1 Services for FY 2025?
    In order to remind you of the status of your current Category 1 contracts (telecom and Internet), see this listserve message that shows a list of all FY 2024 C1 funded and pending FRNs, and the expiration dates of those contracts.  The spreadsheet also shows an additional column – “Julie’s Rebidding Status Notes” – explaining whether I think the service must be rebid for FY 2025.  https://e-ratepa.org/?p=35734
  1. Extending an Existing Contract for FY 20245
    If your original contract included (finite, not open-ended) voluntary extensions and you wish to exercise one of those extensions for FY 2025, be certain to notify the vendor in writing of that decision before the Form 471 is filed.  USAC will ask for a copy of that written notification during PIA review, so be sure to retain evidence of that notification.
  1. Important PEPPM Reminder
    If you will be using the PA PEPPM Contract as the bidding vehicle for your FY 2025 procurements, ALWAYS download and use the most recent version of the PEPPM Category/Awarded Vendor List when sending PEPPM mini-bids.  The Category/Awarded Vendor List is Attachment C on the PEPPM page:  https://e-ratepa.org/?page_id=6121 and is a live document.  Additional product lines are added, authorized resellers change, and vendor contact information changes, so it’s important that you always use the most recent version.  Also, the updated FY 2025 PEPPM Mini-Bid Guide is available at:  https://e-ratepa.org/wp-content/uploads/2015/01/PEPPM-E-rate-Bidding-Guide-2024.pdf.
  1. $3,600 Category 2 Bidding Exemption for Libraries – reminder

Beginning in FY 2024, libraries will have a Category 2 Form 470 bidding exemption) where the total pre-discount price is $3,600 or less per library per funding year.  The cost cannot be averaged across a number of libraries and signed contracts are still required prior to filing the Form 471.  For example, if a library system requests C2 support for 3 libraries, the amount of funding for each library must be $3,600 or less to be eligible for this exemption from filing the Form 470.  Schools are not included in this exemption.

  1. 10% Ineligible Internet Usage Safe Harbor – reminder

Beginning immediately, a 10% ineligible usage safe harbor for all applicants is established which says that cost allocation is not required when ineligible usage of Internet is limited to 10% or less of total usage.  This change is a huge relief for our Career Technology Centers that offer adult education classes, schools that operate child-care and health care centers, etc. as they no longer have to worry about whether a nominal amount of their Internet usage is being used for technically ineligible purposes.  “As a means of providing a safe harbor, we adopt a presumption that if at least 90% of an applicant’s requested Internet service is being used for eligible purposes, the remaining ineligible use of the Internet service will be presumed to be ancillary and, therefore, cost allocation is not required.”  The FCC emphasized that applicants are still required to select the most cost-effective Internet service offering to meet its needs, may seek E-rate funding only the amount of bandwidth needed for eligible use.  

  1. Funding Year 2025 Suggested Timeline: 

If you haven’t yet done so, now is the time to file Form 470s for expiring or new Category 1 services, and Form 470s (or PEPPM mini-bids) for Category 2 purchases that you will need for FY 2025 (July 1, 2025 – June 30, 2026). 

Step:Timeline:
Post Form 470 in EPC to competitively bid all new/expiring contracts (unless using the PEPPM mini-bid option for C2)Now – early December (by Thanksgiving, if possible!)
Update enrollment/NSLP data in school EPC profilesNow – early January (hint: wait for PDE data in mid-Dec)
Conduct bid evaluationEarly January
Obtain school board approvalJanuary or February board meeting (no later)
Sign vendor contractsBy End of February
Create Contract Records in EPC/upload signed contractsLate February/Early March
Submit Form 471February/early March
Earliest applicants can purchase C2 equipmentApril 1, 2025
Funding Commitment Letters (FCDLs) issuedEnd of April – Sept 1 (goal)
File Form 486Upon receipt of FCDLs
Earliest that FY 2025 BEARs or SPIs can be submitted to USACJuly 1, 2025
  

If you have any questions, please don’t hesitate to contact me! 

— Julie


Julie Tritt Schell
Pennsylvania E-rate Coordinator
717-730-7133 – o
jtschell@comcast.net
www.e-ratepa.org    

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