On March 25, 2026, the Federal Communications Commission (FCC) announced that the E-rate program funding cap for FY2026 will be $5.2 billion. This amount represents a 2.8% inflation-adjusted increase from the FY2025 cap of $5.059 billion. The FCC began adjusting the funding cap in 2010 to ensure that 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 six 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 a 3.6% increase to $4.94 billion. For FY2025, the funding cap reached $5.06 billion, with growth slowing further to 2.4%.
In FY2026, the funding cap increased to $5.20 billion, representing a slight uptick in the growth rate to 2.8%.
The overall trend shows consistent funding cap increases, though the percentage growth rate peaked in FY2023 and declined in subsequent years before modestly rebounding in FY2026. Despite fluctuations in the growth rate, the funding cap has steadily risen each year, ensuring continued support for the E-rate program.
The FCC’s Public Notice on FY2026 funding cap can be viewed here.
