A Student-Centered E-Rate Program: Focus on Libraries 
Commissioner Ajit Pai of the Federal Communications Commission has proposed to modernize 
the E-Rate program to meet the needs of the digital age.  For libraries, his plan focuses on five key 
goals: 
1. Simplify the Program 
• Libraries need to fill out only two forms: an initial application and a report back on how the 
money was spent 
• Initial application can be no more than one page 
• Universal Service Fund administrator does all the calculations, reducing the burden on libraries 
• Less red tape means fewer delays, more predictability, and no need to hire consultants 
2. Fairer Distribution of Funding 
• Reserves about 10 percent of E-Rate funding for libraries 
• Gives every library in America an E-Rate budget; every librarian knows how much funding is 
available on day one 
• Libraries receive money based on objective metrics 
• Additional funds allocated for libraries in rural and/or low-income areas as well as small libraries 
to account for higher costs and different needs 
3. Focus on Next-Generation Technologies for Library Patrons 
• Patrons come first; eliminates disincentive to spend money on Wi-Fi 
• No more funding for stand-alone telephone service 
• Equal funding for all eligible services; local libraries (not Washington) set priorities 
4. More Transparency and Accountability 
• Creates website where anyone can find out exactly how any library is spending E-Rate funds; 
enables patrons, city councils, press, and public to conduct effective oversight 
• Head librarian must certify that E-Rate funds were used to help patrons 
5. Fiscal Responsibility 
• Ends the “more you spend, more you get” phenomenon:  Libraries given fixed amount of money 
and must contribute at least one dollar for every three E-Rate dollars they receive 
• Better incentives, reduced waste, and less red tape allows program to accomplish much more 
with the same amount of money; over $1 billion more in first year provided for next-generation 
technology 
• Caps overall USF budget before any increase in E-Rate budget; any expansion in E-Rate must be 
accompanied by corresponding cuts elsewhere in USF