Code of Federal Regulations (alpha)

CFR /  Title 47  /  Part 54  /  Sec. 54.505 Discounts.

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(b) Discount percentages. Except as provided in paragraph (f), the discounts available to eligible schools and libraries shall range from 20 percent to 90 percent of the pre-discount price for all eligible services provided by eligible providers, as defined in this subpart. The discounts available to a particular school, library, or consortium of only such entities shall be determined by indicators of poverty and high cost.

(c) Matrices. Except as provided in paragraphs (d) and (f) of this section, the Administrator shall use the following matrices to set discount rates to be applied to eligible category one and category two services purchased by eligible schools, school districts, libraries, or consortia based on the institution's level of poverty and location in an ``urban'' or ``rural'' area. ----------------------------------------------------------------------------------------------------------------

Category one schools and Category two schools and------------------------------------------------------------- libraries discount libraries discount

matrix matrix----------------------------------------------------------------------------------------------------------------

Discount level Discount level

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% of students eligible for national school lunch program Urban Rural Urban Rural

discount discount discount discount----------------------------------------------------------------------------------------------------------------< 1......................................................... 20 25 20 251-19........................................................ 40 50 40 5020-34....................................................... 50 60 50 6035-49....................................................... 60 70 60 7050-74....................................................... 80 80 80 8075-100...................................................... 90 90 85 85----------------------------------------------------------------------------------------------------------------

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(f) Additional discounts for State matching funds for special construction. Federal universal service discounts shall be based on the price of a service prior to the application of any state-provided support for schools or libraries. When a governmental entity described below provides funding for special construction charges for networks that meet the long-term connectivity targets for the schools and libraries universal service support program, the Administrator shall match the governmental entity's contribution as provided for below:

(1) All E-rate applicants. When a State government provides funding for special construction charges for a broadband connection to a school or library the Administrator shall match the State's contribution on a one-dollar-to-one-dollar basis up to an additional 10 percent discount, provided however that the total support from federal universal service and the State may not exceed 100 percent.

(2) Tribal schools. When a State government, Tribal government, or federal agency provides funding for special construction charges for a broadband connection to a school operated by the Bureau of Indian Education or by a Tribal government, the Administrator shall match the governmental entity's contribution on a one-dollar-to-one-dollar basis up to an additional 10 percent discount, provided however that the total support from federal universal service and the governmental entity may not exceed 100 percent.

(3) Tribal libraries. When a State government, Tribal government, or federal agency provides funding for special construction charges for a broadband connection to a library operated by Tribal governments, the Administrator shall match the governmental entity's contribution on a one-dollar-to-one-dollar basis up to an additional 10 percent discount, provided however that the total support from federal universal service and the governmental entity may not exceed 100 percent. Sec. 54.506 [Reserved]