On March 7, 2025, the Federal Communications Commission (FCC) announced that the E-rate program funding cap for FY2025 will be $5.059 billion. This amount represents a 2.4% inflation-adjusted increase from the FY2024 cap of $4.940 billion. The FCC began adjusting the funding cap in 2010 to ensure that the E-rate program funding keeps pace with the changing broadband needs of schools and libraries.
The graph below presents the E-rate funding cap for the last five years, highlighting both the funding amounts in billions and the percentage change year over year.
In FY2021, the funding cap was $4.28 billion, and in FY2022, the funding cap rose to $4.46 billion, reflecting a 4.2% increase. A more significant growth of 7.0% occurred in FY2023, bringing the funding cap to $4.77 billion. However, the growth rate began to decline in FY2024, with only a 3.6% increase to $4.94 billion. For FY2025, the funding cap reached $5.06 billion, but the percentage increase further slowed to 2.4%.
The overall trend shows consistent funding cap increases, though the percentage growth rate peaked in FY2023 and has been declining since. Despite the declining growth rate, the funding cap has steadily risen each year, ensuring continued support for the E-rate program.
The FCC’s Public Notice on FY2025 funding cap can be viewed here.
