FCC Order DA 26-166 (February 17, 2026)
The Federal Communications Commission (FCC) granted a series of E‑Rate appeals from applicants and service providers whose invoices were rejected as late, even though they were submitted before the deadlines reflected in Universal Service Administrative Company (USAC) systems and tools.
The FCC waived the E‑Rate invoice filing deadline rule (47 CFR § 54.514(a)) for these funding requests and remanded them to USAC, concluding that the parties reasonably relied on incorrect, system‑generated deadline information. The Commission found these circumstances to be extraordinary and outside the applicants’ control and emphasized that there was no indication of waste, fraud, or abuse.
Key Points
- Appeals were granted for several entities, including CENIC, multiple New York school districts, Prairie‑Hills School District 144, and Sharyland ISD.
- USAC system activity (such as post‑commitment modifications and service reclassifications) inadvertently generated incorrect invoice deadlines in EPC and related tools.
- Applicants and service providers filed invoices or extension requests before the deadlines shown in USAC’s systems but later faced denials or recovery actions after USAC “corrected” those dates.
- The FCC reaffirmed that invoice‑deadline waivers remain uncommon but are warranted when applicants reasonably rely on official USAC information that later proves to be wrong.
The Commission emphasized that while invoice deadline waivers are rarely granted, they are appropriate when applicants are harmed by errors outside their control, particularly when caused by USAC systems.
Background: E-Rate Invoice Deadlines
Under E-Rate rules:
- Applicants file FCC Form 472 (BEAR) if they paid vendors in full.
- Service providers file FCC Form 474 (SPI) if they invoice USAC directly.
- Invoices must be submitted within 120 days after:
- The last date to receive service, or
- The FCC Form 486 notification date (whichever is later).
- A one-time 120-day extension may be requested before the deadline.
The FCC has historically stated that additional extensions or waivers are generally not in the public interest, except in extraordinary circumstances.
Why Relief Was Granted
The FCC found that:
- USAC systems generated incorrect invoice deadlines.
- Applicants submitted invoices before the displayed deadlines.
- Deadlines were later retroactively changed by USAC.
- Some applicants even faced recovery of funds (RIDF) after payments were initially approved.
- There was no evidence of waste, fraud, or abuse.
Because invoice deadlines are numerous and complex, the FCC acknowledged that applicants commonly rely on USAC systems (EPC and data tools) to track deadlines.
Common Issue Across Cases
USAC system actions — such as post-commitment changes, service reclassification, or Form 500 processing — inadvertently created incorrect extended deadlines, which applicants relied upon.
FCC Policy Clarifications
The FCC reaffirmed several important principles:
1. Applicants Are Still Responsible for Compliance – Program participants must understand and follow E-Rate rules regardless of system errors.
2. Waivers Remain Rare – Invoice deadline waivers will only be granted in extraordinary circumstances.
3. Reliance on Official System Information Matters – Relief is more likely when:
- Incorrect information comes from official USAC systems or tools
- Applicants act reasonably and in good faith
- Deadlines are fluid or complex
Practical Takeaways for Applicants
This order provides several important lessons:
✅ Always track invoice deadlines carefully
✅ Request extensions before deadlines whenever possible
✅ Document EPC deadline screenshots when invoicing
✅ Monitor post-commitment changes closely
✅ Appeal quickly if deadlines change retroactively
If you rely on USAC-provided deadline information and it later proves incorrect, relief may be available.
For the full FCC order DA-26-166A1 Click Here
