In FY 2024, 77.0% of E-Rate allocation went to communities where 14.2 million households lack home internet and 9.0 million lack a large-screen device

Every year, the federal government helps schools and libraries pay their internet bills through a program called E-Rate, part of the Universal Service Fund. In 2024, it approved $2.76 billion in discounts for 21,102 institutions across the country: 18,507 schools and school districts, and 2,595 libraries. This study matches every funded institution to Census data for the communities around it, to examine who the program serves and what those neighborhoods look like.

The discount each institution receives is set by the federal government based on how many students qualify for the National School Lunch Program (NSLP) -- free or reduced-price meals, a standard federal measure of household income. Schools where 75 percent or more of students qualify receive the deepest discounts: 80 to 90 percent off their bill. Schools where fewer than 35 percent qualify receive 20 to 49 percent off.

In 2024, 77.0 percent of E-Rate dollars went to the highest-need category. In the ZIP codes where those institutions operate, Census data shows 14.2 million households have no home internet subscription and 9.0 million have no large-screen device such as a laptop, desktop, or tablet.

E-Rate spending falls into four categories defined by the FCC. The largest is internet access: the recurring monthly bill a school or library pays to an internet provider. In this funding year, that category alone accounted for $1.72 billion, or 62.1% of total commitments. This is not a one-time purchase. It is a bill that returns every month. If the discount were removed, the bill would not disappear -- each institution would need to cover the full cost on its own budget.

The Census Bureau tracks not just whether households have internet, but what devices they use. A household with internet access only on a smartphone but no laptop, desktop, or tablet is counted as smartphone-only. A household with no computing device of any kind is counted separately. The figures below cover ZIP codes served by the highest-discount institutions, weighted by household count.

The table below shows all four discount bands, the institutions in each, the committed dollars, how that money splits between recurring internet service and equipment, and the Census figures for surrounding communities. All household figures are estimates derived from Census data.

The two charts below show where institutions and dollars are concentrated across the four discount bands.

The 20 cities below received the most E-Rate funding in 2024. Each row shows the number of schools and libraries receiving funding, the average discount level, and Census estimates for the surrounding communities.