The State Matching Provision was instituted as part of the E-rate Modernization Orders implemented over the last few years. In the Second E-rate Modernization Order, the FCC adopted rules providing additional Category One funding to match state funding for special construction to connect schools and libraries to high-speed broadband services that meet the FCC’s long-term capacity broadband goals. The E-rate Program will increase an applicant’s discount rate for special construction charges up to an additional 10% to match state funding on a one-to-one dollar basis. For schools operated by the Bureau of Indian Education or Tribal governments and libraries operated by Tribal governments, the one-to-one dollar match of up to 10% will be available for funding received for special construction costs from states, Tribal governments, or other federal agencies.
Schools must participate in the E-rate program to be eligible to receive state matching funds.