The E-Rate program that provides deep discounts on telecommunications services for the nation’s low-income and most rural schools and libraries marks its 11th year of operation since it was established by Congress in the Telecommunications Act of 1996.

Since it’s formal launch in 1998, the E-Rate has provided some $20 billion in discounts on telecommunications services, internet access, and internal connections, and has helped transform many of America’s schools and libraries into modern institutions. Its targeted funding reaches the poorest schools and libraries and those in the most remote rural areas. The federal program provides discounts of from 20 to 90 percent of the cost.

Thanks to the E-Rate, overall public school instructional classroom Internet access jumped from 14 percent in 1996 to 94 percent in 2005. Connectivity levels for students in rural classrooms reached 95 percent; majority-minority schools districts reached 92 percent, and the highest poverty districts reached 92 percent. Today, nearly 100 percent of public libraries provide some form of public Internet access, thanks in part to the E-Rate. Some 2,800 private K-12 schools benefitted from the program.

The E-Rate became a new component of the Universal Service program, administered by the Federal Communications Commission through its Universal Service Administrative Company. Historically, the Universal Service program ensured affordable telephone service in rural communities. Recognizing the growing importance of new technologies and the Internet to improve education and access to critical information, Congress provided up to $2.25 billion annually in discounts to America’s public and private schools and public libraries. Consumers pay the cost of the program through a federal fee on their monthly telephone bill.