The Federal Communications Commission (FCC) has set funding for year three of the eRate at $2.25 billion, the maximum allowed under the program's rules. But with demand for discounts at an all-time high, most schools are likely to receive only a fraction of the total funding they've requested.

The Schools and Libraries Division (SLD) of the Universal Service Administrative Co. (USAC)—the federal agency that administers the eRate—estimates that only schools qualifying for discounts of 81 percent or higher will receive help with their internal connections this year—the wiring, routers, switches, and servers needed to deliver

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