On May 7, 1997, the Federal Communications Commission (FCC) adopted a Universal Service Fund Order implementing the Telecommunications Act
of 1996. The law and subsequent Order's intent was to facilitate affordable access to modern telecommunications and information services
for eligible schools and libraries. The program, known as Education Rate or Erate makes up to $2.25 billion annually available to provide
discounts on eligible services to schools and libraries.
The not-for-profit Universal Service Administrative Company (USAC) is responsible for administering the Fund under the direction of the
FCC. The Schools and Libraries Division (SLD) of USAC administers the day-to-day operations of the E-Rate program.