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John Harrington, CEMP

E-rate and the Federal Shutdown: What Schools and Libraries Need to Know

Introduction

The federal government shutdown has renewed questions across the education community: Will E-rate funding be delayed? Could application reviews or payments be disrupted? While headlines focus on political gridlock in Washington, the reality for schools and libraries is more nuanced.

At Funds For Learning, our mission is to help education leaders navigate uncertainty with clarity. Here’s what we know, and what we’re watching closely.

Short-Term Impacts: What’s (Mostly) Unchanged

USAC Operations Continue

The Universal Service Administrative Company (USAC), which manages the E-rate program, operates using funds collected from telecommunications providers, not direct congressional appropriations. This means the majority of E-rate’s day-to-day operations continue during a government shutdown.

FCC Oversight May Slow

However, some oversight and policy functions rest with the Federal Communications Commission (FCC). During a prolonged shutdown, staff furloughs at the FCC could temporarily delay decisions requiring direct FCC action, such as waiver requests or rule clarifications.

Application Work Can Continue

Schools and libraries can still file forms, update their EPC profiles, and prepare for the upcoming Form 471 filing window. FFL’s tools and team remain fully operational to assist applicants through every step.

Longer-Term Considerations: Budget and Policy Risks

While E-rate funding is not appropriated annually, the broader federal budget climate matters. Proposals that seek to reduce federal support for communications infrastructure or reallocate Universal Service contributions could influence E-rate’s long-term stability.

Congressional debates about federal spending priorities often ripple into the Universal Service Fund (USF) conversation. Policymakers on both sides have raised questions about modernizing or restructuring the USF, a discussion likely to intensify if the shutdown extends or budget pressures grow.

Why It Matters

Reliable broadband is not a luxury: it’s a lifeline for learning. Any disruption in funding, review timelines, or confidence in the E-rate program can slow progress for schools already working hard to close the digital divide. The shutdown highlights how dependent essential programs are on stable governance and long-term investment.

Funds For Learning’s Perspective

For nearly three decades, FFL has helped schools and libraries secure over $3.6 billion in E-rate support. We’ve weathered past shutdowns, policy changes, and funding delays. Our experience shows that preparation and persistence matter most in times like these.

Our team continues to monitor federal developments closely and will share updates if any E-rate filing deadlines, funding waves, or FCC activities are affected. In the meantime, applicants should proceed with their usual planning and documentation.

Looking Ahead

While Washington debates budgets, educators continue their work. We believe the best response to uncertainty is action, ensuring every student and community has access to the connectivity they deserve.

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