Category Two funding got expanded, but the eligibility paperwork tightened. A quick read for K-12 IT leads filing this cycle.
The Category Two Budget Increase
The FCC's 2026 E-Rate programme increased Category Two (C2) per-student budgets from $167 to $198 for most eligible schools, with higher rates for rural and tribal applicants. C2 funding covers on-premises equipment: Wi-Fi access points, network switches, and UPS units. The five-year C2 budget cycle means schools that exhausted their prior cycle allocation can now access fresh funds. Applications opened February 1, 2026, with Form 471 due April 10.
What Tightened: Eligibility Documentation
The FCC tightened documentation requirements around equipment disposal and competitive bidding. Schools must now document the disposal of replaced equipment (model, serial number, disposal method) as part of the application record. The competitive bidding window must be at minimum 28 days, and any vendor preference cited in the RFP must be technology-neutral and justified in writing. Applications that used a vendor-specific specification in their RFP without a technology-neutral justification are at higher audit risk.
Cybersecurity Pilot: Still Limited Slots
The E-Rate Cybersecurity Pilot Programme, which can fund firewalls, endpoint protection, and identity management for eligible schools and libraries, is still accepting applications — but slots are significantly oversubscribed. Priority is given to applicants with demonstrated cybersecurity incidents or documented high-risk posture. If you applied in the first round and were wait-listed, resubmitting with updated incident documentation or a third-party risk assessment improves your position.
What to Do This Week
File your Form 470 (competitive bidding) immediately if you have not already — the 28-day window must close before you can file Form 471. Ensure your USAC portal account is up to date, including your entity profile and contact information. If you plan to apply for Category One (broadband/fibre) funding in addition to Category Two, verify your broadband contract dates — many schools have C1 commitments expiring this cycle and need to rebid.
- C2 per-student budgets increased to $198 in 2026 — eligible equipment includes Wi-Fi, switches, and UPS
- Equipment disposal documentation and technology-neutral RFP language are now required and audited
- The Cybersecurity Pilot Programme prioritises applicants with documented incident history or third-party risk assessments
- Form 470 must be filed and the 28-day window must close before Form 471 can be submitted