The 2025 E-rate Trends Report offers one of the clearest pictures yet of what schools and libraries are experiencing as they prepare for the next funding cycle. With 1,329 respondents representing every state, the feedback is remarkably consistent, and it points directly to the choices applicants will need to make heading into the FY2026 Form 471 filing window.
Here are the big themes shaping the months ahead:
E-rate remains essential and demand isn’t slowing down
An overwhelming 97% of respondents describe E-rate as vital to their mission. Applicants continue to rely on the program not only for basic connectivity but also for the broadband and Wi-Fi performance required for digital learning. This stability gives districts confidence as they plan ahead, especially with a new five-year Category Two cycle beginning in FY2026.
Costs are rising and budgets are feeling it
Bandwidth, equipment, and cybersecurity expenses continue to increase faster than many school and library budgets. Nearly every open-ended survey comment touches on some form of financial strain.
Applicants describe:
- Inflation in transport and internet access costs
- Higher lifecycle costs for Wi-Fi and switching
- Growing pressure to fund security layers and failover paths
The combination of rising prices and static discount thresholds puts a premium on early planning, especially for C2 budgeting across a new five-year cycle.
Cybersecurity and redundancy are no longer “nice to have”
One of the strongest signals in this year’s data: applicants see network security and reliability as integral to connectivity.
Across the survey:
- 97% believe cybersecurity tools should qualify for E-rate funding
- Applicants repeatedly cite the need for dual/backup connections
- Many describe cybersecurity as their fastest-growing unfunded requirement
Even as the Cybersecurity Pilot Program moves forward, most applicants are outside the pilot and must plan strategically for ongoing security needs.
EPC progress is real but frustrations remain
Applicants report improvement in EPC ease of use, but it remains the top administrative challenge. Respondents highlight navigation issues, profile-update confusion, and redundant PIA inquiries, especially for smaller and rural entities.
What applicants can do next
As applicants begin preparing for the FY2026 filing window, the Trends Report points to three practical steps:
1. Review and update EPC profiles
Accurate student counts, annex lists, and contract records are essential for clean C2 budgets.
2. Build a five-year C2 plan
A multi-year view helps districts prepare for Wi-Fi 7, switch refresh cycles, cybersecurity add-ons, and network resiliency.
3. Assess network reliability and security needs
Understanding bandwidth growth projections and identifying single points of failure will support both E-rate filings and local planning.
The bottom line
The message from 1,329 applicants is clear: E-rate continues to be essential, effective, and deeply relied upon, but the gap between needs and budgets is widening. The new C2 cycle, rising cybersecurity pressures, and increasing resiliency expectations make early preparation more important than ever.
Download the Full Trends Report
Applicants and policymakers can explore all findings, charts, and applicant comments in the complete report here.
