1. E-Rate lowers the cost of the broadband, internet, and internal network services that schools and libraries buy. The support arrives as a discount on those specific purchases.

2. The discount is based on need. Schools and libraries serving more low-income communities receive larger discounts, ranging from 20% to 90% of eligible costs.

3. Funding covers only eligible services and equipment, and applicants must run a competitive bidding process to select their providers. The competitive bidding process ensures that cost is the primary factor in applicants’ choice of provider.

4. E-Rate does not pay for laptops, tablets, software, or digital content. The program supports connectivity and the network that carries it.

5. The program operates under an annual spending cap, and participants are subject to audits and oversight.

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