CATEGORY 2 Competitive Bidding
In the E-rate program, Category Two (C2) funding covers internal connections, their maintenance, and managed internal broadband services. This includes equipment like routers, switches, and wireless access points, as well as the wiring and services needed to distribute internet access within a school or library building.
Essentially, Category One (C1) focuses on the connection to the internet itself (like the internet service), while Category Two deals with the infrastructure within the building that distributes that internet access.
Here's a more detailed breakdown:
Internal Connections
This covers the physical infrastructure needed to get internet from the point of entry to the various devices and users within a school or library. This includes things like:
- Routers and switches
- Wireless access points (Wi-Fi)
- Cabling and wiring
- Firewall services
- Uninterruptible Power Supply (UPS) for backup power
- Racks for organizing equipment
- Caching
Basic Maintenance of Internal Connections (BMIC)
This covers the ongoing upkeep and support needed to keep the internal network functioning properly. This includes things like:
- Repair and upkeep of eligible hardware
- Wire and cable maintenance
- Configuration changes
- Basic technical support (online and phone)
- Software upgrades and patches
Managed Internal Broadband Services (MIBS)
This covers the management and operation of the internal network by a third-party provider, such as managed Wi-Fi services.
FY2026-2030 Category 2 Five-Year Budget Cycle
💸 Upcoming Cycle
July 1, 2026 – June 30, 2031
💸 C2 Budget Multipliers
- Schools – $201.57/student
- Libraries – $5.43/sq. ft.
💸 Funding Floors
- Schools and Libraries – $30,175.00
- Tribal Libraries – $66,385.12
💸 District and Library System-wide
- One Budget for all
- No longer site-specific budgets
💸 Size, entity count and Sq. Ft. Matters
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