On May 11, 2026, the FCC’s Wireline Competition Bureau released Public Notice DA 26-460 directing USAC to fully fund all eligible Category One and Category Two E‑Rate requests for Funding Year 2026 (July 1, 2026 – June 30, 2027). USAC’s total FY 2026 demand estimate is $3.515 billion ($1.701 billion for Category One and $1.814 billion for Category Two), which is well below the E‑Rate funding cap of $5.2 billion.
In addition, USAC projects $600 million in unused funds from prior years that the Bureau has instructed USAC to apply to offset collection requirements needed to fully meet this demand. Because of the combination of the annual cap and these carry-forward dollars, the Bureau has determined there is sufficient funding to cover all eligible Priority (Category One) and internal connections (Category Two) requests for FY 2026 and has formally directed USAC to proceed on that basis. This action provides assurance to schools and libraries that compliant funding requests for both broadband services and internal connections will not be reduced due to a funding shortfall in FY 2026.
To view the full FCC Public Notice, Click Here
