On December 17, 2025, the Federal Communications Commission (FCC) released the Funding Year (FY) 2026 E‑Rate Eligible Services List (ESL), outlining the products and services eligible for E‑Rate discounts in the upcoming funding cycle. The FY2026 ESL remains consistent with prior years, continuing the program’s focus on high‑speed connectivity and modern network infrastructure.
Category One Services — Broadband internet access, data transmission, and leased lit and dark fiber remain fully eligible, enabling applicants to secure reliable, high‑capacity broadband connections.
Category Two Services — Support continues for internal connections, Basic Maintenance of Internal Connections (BMIC), and Managed Internal Broadband Services (MIBS), all designed to help schools and libraries maintain strong and secure internal networks.
Key Update: Software-Based Services Now Included Under Internal Connections
Beginning in FY2026, the Internal Connections category explicitly includes software‑based functionality that was previously divided between Internal Connections and BMIC—a split that often caused confusion and funding challenges. The updated definition now covers:
- Software-based services supporting eligible internal connections
- Bug fixes and security patches for internal connections software
- Software-based technical support for eligible internal connections
- Remote configuration and change management of eligible internal connections software
With this change, BMIC is narrowed to on‑site, in‑person configuration and repair of eligible equipment only. Starting in FY2026, the following activities are no longer considered BMIC:
- Online or phone-based technical support
- Software or firmware upgrades
- Deployment of security patches
Pro‑ration and Service‑Splitting Rules Eliminated
The FCC has removed the previous pro‑ration and cost‑splitting rules for software and similar services that spanned Internal Connections and BMIC. Applicants no longer need to divide a single software license across categories or amortize one‑time license fees across multiple years. Instead, funding must now be requested in the year the cost is incurred.
For multi‑year licenses or remote‑based services funded under prior rules, applicants may:
- Request support for the remaining term beginning in FY2026 under the updated structure, or
- Continue receiving pro‑rated support based on their original funding treatment.
Managed Internal Broadband Services (MIBS): Unchanged but Under Review
The FY2026 ESL retains MIBS as a separate Category Two option with no structural changes. However, the FCC acknowledged continued stakeholder concerns about overlap between MIBS and BMIC, specifically the distinction between proactive managed services and traditional break‑fix support. While no rule changes were adopted for FY2026, the FCC noted it may revisit these issues in a future rulemaking.
Firewalls and Security: Clarifications Only
The FCC did not expand E‑Rate eligibility for standalone cybersecurity tools. The current framework remains in place, though the Commission noted that many eligible network devices now include integrated security features as standard functionality.
DNS, DHCP, and Core Network Services: No Change
No new eligibility was added for standalone DNS, DHCP, or IP address management functions. These remain unchanged but may be reconsidered in future FCC proceedings.
Cost Allocation: No Additional Requirements
The FCC declined to add new cost‑allocation provisions for uninterruptible power supply (UPS) units or switch ports serving security cameras, noting that both topics are under review in a separate proceeding.
Click here to view the full FY2026 ESL final proceeding. FCC Approves FY2026 ESL
