Report: 90% of Schools Depend on E-rate Funding Every Year

A new report from Funds for Learning highlights the critical role of the Federal Communications Commission's E-rate program in funding essential technologies and services for K-12 schools. For its 14th annual E-Rate Trends Report, the E-rate consulting and services firm surveyed 2,355 E-rate applicants from a mixture of public and private schools, districts, libraries, and consortia across the United States to find out about stakeholder experience and needs.

The vast majority of respondents (90%) said they can depend on E-rate funding every year, with 94% noting that E-rate funding is vital to their organization's internet connectivity goals. More than 88% indicated that E-rate funding is essential in ensuring equitable access to internet services, particularly for underserved and rural communities.

Cybersecurity remains a top concern for E-rate applicants, the report found, with more than 95% of survey respondents agreeing that network security and management products and services should qualify for Category 2 E-rate funding. At the time of the survey, the FCC's Cybersecurity Pilot Program had not yet been finalized, but 86% of respondents expressed interest in participating in the program. Cybersecurity technologies or services that organizations said would be part of their application include:

  • Intrusion detection/prevention (cited by 87% of respondents);
  • Cybersecurity education and training (83%);
  • Content/malware filtering and DNS security (81%);
  • Next-generation firewalls (79%);
  • Endpoint security (74%); and
  • Multi-factor authentication (60%).

However, Funds for Learning noted that the Cybersecurity Pilot may not be living up to initial expectations. "Anecdotally, interest in the pilot seems to have waned as applicants have learned more about the program's funding limitations," the report said.

The survey also asked about future plans and expectations. Key findings include:

  • 40% of respondents expect their organization's internet bandwidth needs to increase by 25% over the next three years.
  • 69% said they will need to upgrade their current WiFi network within one year or one to three years.
  • By the end of funding year 2025, 57% of respondents expect to have requested 100% of their available Category 2 budget.

"The findings in this report highlight the critical role of the E-rate program in bridging the digital divide for schools and libraries," said Brian Stephens, director of stakeholder engagement of Funds For Learning, in a statement. "However, we must prioritize expanding funding eligibility for cybersecurity services to protect our students and educators in an increasingly complex digital landscape."

The full report is available on the Funds for Learning site (registration required).

About the Author

Rhea Kelly is editor in chief for Campus Technology, THE Journal, and Spaces4Learning. She can be reached at [email protected].

Featured

  • school building protected by a glowing blue shield with circuit patterns, blocking red-orange cyber threat icons

    Establishing a Proactive Defense Against Evolving Cyber Threats

    Here are six good starting points for K-12 districts that want to improve their cybersecurity mitigation strategies and take a more proactive approach to mitigating risk.

  • Stylized illustration showing cybersecurity elements like shields, padlocks, and secure cloud icons on a neutral, minimalist digital background

    Microsoft Announces Host of Security Advancements

    Microsoft has announced major cybersecurity advancements across its product portfolio and practices. The work is part of its Secure Future Initiative (SFI), a multiyear cybersecurity transformation the company calls the largest engineering project in company history.

  • soft-edged digital blocks and AI imagery on a muted background

    OpenAI Launches GPT-4.1, Offering Upgrades in Coding, Context Processing, Efficiency

    OpenAI has introduced GPT-4.1, offering stronger performance across software development, instruction following, and long-context comprehension.

  • The AI Show

    Register for Free to Attend the World's Greatest Show for All Things AI in EDU

    The AI Show @ ASU+GSV, held April 5–7, 2025, at the San Diego Convention Center, is a free event designed to help educators, students, and parents navigate AI's role in education. Featuring hands-on workshops, AI-powered networking, live demos from 125+ EdTech exhibitors, and keynote speakers like Colin Kaepernick and Stevie Van Zandt, the event offers practical insights into AI-driven teaching, learning, and career opportunities. Attendees will gain actionable strategies to integrate AI into classrooms while exploring innovations that promote equity, accessibility, and student success.