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In addition, not-for-profit libraries are eligible for the e-rate if they are eligible for assistance from a state library administrative agency under the Library Services and Technology Act and are funded as an independent entity; i.e., the library's budget is totally separate from that of any learning institution. For example, higher education institutions are not eligible for e-rate discounts, so an academic library is only eligible if its funding is completely separate from the funding of any higher education institution. A library within an eligible school, however, may receive discounted services as part of the school.

What services are eligible for the e-rate?

Eligible schools and libraries may purchase any commercially available telecommunications services, Internet access and internal connections at discounted rates. To ensure that schools and libraries have maximum flexibility to purchase whatever services they want and need, the ruling allows schools and libraries to select both the technology and the provider that best meet their needs (subject to the competitive bidding process described below). For example, the e-rate applies to basic telephone service, a T-1 line and wireless telecommunications services. E-rate discounts also apply to non-content Internet access (for example, an Internet service provider), including e-mail.


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