Industries

    $28M in Federal Funding Left on the Table

    An analysis of every Wisconsin public library's E-Rate Category 2 activity reveals that 94% of libraries are walking away from money already allocated to them — and exactly what the funded 6% did differently.

    321
    WI public libraries analyzed
    20
    Received C2 funding
    $28M+
    Estimated unclaimed budget
    100%
    Consultant success rate
    All Case StudiesThe Problem

    $28 million sitting unclaimed

    The E-Rate program was designed to ensure libraries and schools could afford the technology infrastructure they need. Category 2 (C2) funding covers internal network equipment — switches, access points, cabling, firewalls — at discounts of 30%–90%.

    Every eligible library receives a minimum C2 budget of $25,000 per five-year cycle. Larger libraries receive significantly more, calculated by square footage. Milwaukee Public Library's C2 budget for the prior cycle approached $2.9 million — and only a fraction was claimed.

    The funds don't roll over. Each five-year cycle has its own budget. If your library doesn't apply and receive funding in this cycle, that allocation is gone.

    The Data

    What we found across 321 libraries

    Libraries that received C2 funding (FY2021–2025)20 (6%)
    Libraries funded in the new FY2026–2030 cycle0 (0%)
    Average C2 budget — libraries that applied$284,744
    Average C2 budget — libraries that did not apply$94,652
    Average size of funded libraries63,239 sq ft
    Average size of unfunded libraries17,230 sq ft
    Libraries that used a professional consultant3 of 321

    One finding stands out above all others: every library that used a professional E-Rate consultant received funding. Every library that tried to navigate the process alone was dramatically less likely to succeed. This is not a coincidence.

    Why Most Libraries Don't Apply

    A process designed by the federal government

    A complete E-Rate C2 application requires:

    1. 01

      File a Form 470

      Post a public solicitation for bids and wait a mandatory 28 days. The form must describe technology needs accurately enough to receive compliant bids.

    2. 02

      Evaluate bids and select a vendor compliantly

      Vendor selection must follow USAC rules — price of eligible products must be the primary criterion, with documentation.

    3. 03

      File a Form 471

      Within USAC's January–March window, file the funding request with accurate cost and service details. Errors can delay or deny the application.

    4. 04

      Respond to PIA review questions

      USAC's Program Integrity Assurance team may ask follow-ups. Slow or incomplete responses can reduce funding.

    5. 05

      Manage delivery, invoicing, and BEAR filing

      After receiving the Funding Commitment Decision Letter, coordinate delivery, pay the vendor, and file for reimbursement on schedule.

    What the Funded 6% Did

    Two patterns explain success

    Large urban systems with internal capacity

    Milwaukee, Madison, Kenosha, and La Crosse public libraries each have administrative staff who could absorb the application workload. Milwaukee, working with an external consultant, received $775,845 — the largest disbursement in the state.

    Small libraries with regional support

    A cluster of small Dane County libraries — Oregon, Monona, Stoughton, Belleville, Poynette, New Glarus, Black Earth, Marshall — succeeded with shared administrative help from the South Central Library System. Other regions, largely, did not.

    The Takeaway

    The barrier is process, not eligibility

    Nearly every public library qualifies. The barrier is process complexity — and that barrier is entirely solvable with the right support. The FY2026–2030 cycle is open right now, and the first libraries to file will be the first to be funded.

    Find your library's C2 budget

    Look up your library by name and see exactly how much E-Rate Category 2 funding is available to claim this cycle.

    The new FY2026–2030 cycle is open. Allocations don't roll over.