February E-rate Update
February 3, 2025
Federal Funding Pause Rescinded: On Monday, January 28, the Office of Management and Budget (OMB) issued a memo directing all federal agencies to pause making obligations or disbursements of all federal financial assistance. A federal judge put a stay on the pause; however, in reading the Judge’s Order, I believe the stay only impacted disbursements of funds, but new obligations would have been subject to the OMB memo, meaning they would continue to be paused. Then, on Wednesday, January 29, the acting director of the White House Office of Management and Budget issued a memo stating OMB memorandum M-25-13 “is rescinded.” Should either of these FCC initiatives be included in future funding freezes, I will let you know.
Briefs Filed in Supreme Court USF Constitutionality Case: In July 2024, the 5th U.S. Circuit Court of Appeals found that the Universal Service Fund (USF) was unconstitutional. In earlier decisions, both the 6th and 11th Circuit Courts found the opposite – that the USF was constitutional. The Supreme Court agreed to hear the case and briefs on both sides were filed in mid-January. No date has been set yet for oral arguments, but we expect they will take place in late March or early April. We expect a decision in June 2025. In the meantime, E-Rate and the other three USF programs are operating and will continue, “business as usual.” I’ll keep you posted as the case proceeds.
Third FCC Commissioner Nominated: President Trump has nominated Olivia Trusty, a top Republican aide formerly with the U.S. Senate Commerce Committee, as his pick for the next Republican FCC Commissioner. I expect she will be confirmed in the next few weeks at which time the FCC will have a Republican 3-2 majority.
Status of Off-Campus Hotspots: The new U.S. Senate Commerce Committee Chairman, Ted Cruz, and 13 other Senate Commerce members have introduced a resolution of disapproval under the Congressional Review Act (CRA) that, if passed, would nullify the FCC’s Off-Campus Hotspot Order. The Resolution states that the Telecommunications Act limited the FCC’s USF authority to classrooms, not off-campus services. I will keep you updated on this issue, but for now, continue filing.
Last Year to Use Your Category 2 Funding! Don’t forget that FY 2025 is the 5th and final year of the current 5-year Category 2 budget cycle! To view your remaining C2 budget for FY 2025 (as of 9/17/2024), see: https://e-ratepa.org/?p=35679. If you have updated your C2 enrollment in EPC, the C2 budget will change and the results can be found on USAC’s C2 Budget Data Tool at: E-Rate-C2-Budget-Tool-FY2021-/8z69-hkn7. Simply use the filter on the right side of the page. Unused C2 budgets will not roll over into FY 2026, but a new C2 budget cycle will begin.
Time Running Out to Post 470s – If you haven’t done so already, it is time to post any last-minute Category 2 Form 470s or PEPPM mini-bids for new equipment, or Category 1 Form 470’s for services needing a new contract or month-to-month services (MTM must be filed annually). The only reasons you would not have to file a Form 470 this year are if you are: 1) Using the CABIO bidding exemption for internet, 2) Using the PEPPM mini-bid for equipment, or 3) Are in a multi-year contract that expires on or after 6/30/2026. The very last day that you can post a 470 is February 27, but don’t wait until the final day because this only leaves the final day of the Form 471 window – March 26 — to evaluate your bids, obtain local board approvals, sign contracts, create the contract record, and complete the 471. Please don’t wait another minute to file your Form 470! A rebidding status list, based on the contract expiration dates you listed on the FY 2024 Form 471, is available at: https://e-ratepa.org/?p=35734.
FY 2025 Form 471 Window Dates – The Form 471 window filing window is open and closes March 26, 2025. If you are in a multi-year contract, are using the CABIO bidding exemption, or have completed your bid evaluation and have a signed vendor contract, file your 471 now! All of the Filing Guides and resources are available at: https://e-ratepa.org/?page_id=754.
Extending an Existing Contract for FY 2025 – 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.
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: PEPPM-E-rate-Bidding-Guide-2024.pdf.
If you have any questions, please let me know! Happy filing, everyone!
— Julie
Julie Tritt Schell
PA E-rate Coordinator
jtschell@comcast.net
www.e-ratepa.org
717-730-7133