FCC Opens Second E-Rate Application Window for Funding Year 2020

The FCC today directed USAC to open a second funding year 2020 window to allow schools to request additional E-rate discounts for the limited purpose of purchasing additional bandwidth to meet demand for on-campus connectivity.

Key points:

• The Window shall open upon publication of the Order in the Federal Register and will remain open through October 16, 2020.  It usually takes a few weeks for Federal Register publication, so it is likely the Commission has requested expedited publication.
• Schools may only request E-Rate discounts for additional on-campus category one Internet access and/or data transmission services needed as a result of the COVID-19 pandemic. 
• Off-campus use of eligible services, even if used for an educational purpose, is ineligible for support. 
• If eligible based on the competitive bidding exemption outlined below, applicants may request discounts on services already provided in funding year 2020 as early as July 1, 2020.
• Applicants may request E-Rate discounts for their bandwidth increases without conducting additional competitive bidding subject to the limitations below. 
• No additional competitive bidding is required by E-rate rules if the applicant: (1) already sought bids for the services by posting an FCC Form 470; (2) received a Funding Commitment Decision Letter from USAC approving a funding year 2020 funding request for eligible category one Internet access and/or data transmission services that relied on that FCC Form 470, or has such a funding request pending; and (3) requests additional E-Rate discounts during the second application window to purchase additional bandwidth through the existing service provider or a new one. If the FY 2020 application was denied based on competitive bidding reasons, then applicants cannot use that competitive bidding process as a basis for a request in the second window.
• For the purposes of this second funding year 2020 application window only, USAC shall grant funding requests from applicants seeking funding where the price per megabit is the same or less than the original contract.  
• If the price per megabit is higher than the original contract, USAC will limit the funding commitment to the price per megabit in the original contract.  
• This temporary exemption to our competitive bidding rules does not relieve service providers of their obligation to offer the lowest corresponding price for services.  
• We also recognize that many states and localities have waived local procurement rules in light of COVID-19.  To the extent they have not, applicants may post an FCC Form 470 if necessary to comply with local laws.  
• Applicants that wish to apply for this funding opportunity must submit the following information in the narrative section of the new FCC Form 471 funding request: (1) the identification numbers for the funding year 2020 FCC Form 471 and funding request that previously relied on the FCC Form 470; and (2) a statement confirming that the requested E-Rate discounts are for additional bandwidth needed as a result of COVID-19.  To facilitate and expedite USAC’s review, applicants are required to provide additional information in the narrative section about the price per megabit in the original and new funding requests and highlight any difference in pricing.