2026 Texas State Match Fund for E-rate

Overview

The Texas Education Agency (TEA) is offering a State Match Fund up to $5,000,000 to help eligible school systems enhance their federal E-rate support. These funds are intended to support eligible E-rate projects, provided that each grantee meets the standards outlined in Texas Government Code Section 490I.0106, which governs broadband infrastructure eligibility for participating school districts. 

E-Rate funding from the federal government provides a subsidy based on your rate of economically disadvantaged rate. Meaning if you have 50% of students who are economically disadvantaged for a total project cost of $10M, the E-Rate discount is 80%. E-rate without the State Match would provide $8.0M and $2.0M must be funded locally.  Texas Applicants using the State Match Program would receive an additional 10% from the E-Rate Program plus 10% from the Texas State Match Program. Therefore, Special Construction Cost for an applicant with an 80% or a 90% E-Rate discount would pay $0.00 for approved special construction cost.   

Please note the important dates to the right.

Eligibility - FY 2026 

• To qualify for the FY2026 State Match, applying entities must certify that the projects for which they are seeking E-Rate funds provide network facilities in public rights of way or public utility easements, etc. Funding may not be used to build any physical network segment of broadband infrastructure on school district property that specifically connects end users to the main internet network, such as any equipment that delivers Internet service to a facility or building (e.g. last mile network) unless the property is listed as an unserved or underserved location.  
• In cases where broadband infrastructure must be built on school district property where the location is considered served and ineligible for last mile funding, the funded infrastructure must only include physical equipment that carries a signal from interconnection points and aggregation facilities to a demarcation point, access point, or physical location at which two or more networks or communication devices share a connection (e.g. middle-mile network). In addition, only special construction charges associated with the middle-mile transport infrastructure (as defined in Utilities Code §43.003(5)) portion of the project(s) are eligible for the FY 2026 state match and only if these circuits are necessary for the utilization of services by the eligible entities.
• Funds are awarded on a first-come, first-served basis for eligible entities based upon receipt of the FY26 Texas State Match Form.A by TEA. Form 471 must be submitted and certified before FY26 Texas State Match Form.A submittal to TEA.

Eligibility Determinations (Unserved / Underserved Locations)

• Eligibility for the State Match is based on service availability data provided by the Texas Broadband Development Office (BDO). The BDO relies on the FCC Broadband Data Collection (BDC) Map as its authoritative source for determining whether a school is considered underserved or unserved. The FCC map is based on ISP self-reported data and is updated on a rolling basis.
• Any updates to a school’s broadband status must be submitted through the FCC’s availability challenge process. Additional information on submitting an availability challenge is available on the FCC’s website.

Process to Apply for State Match Funds

• Indicate State Match on Form 471 when submitting to USAC
• Next, submit FY26 Texas State Match Form.A to TEA after filing 471
• TEA reviews FY26 Texas State Match Form.A and approves/denies request
• If project is approved by TEA and applicant has received FCDL from USAC, applicant submits FY26 Texas State Match Form.B to TEA
• TEA will review FY26 Texas State Match Form.B and notify applicant if they are approved to draw down funds. Please note that funds cannot be drawn down until project is complete and vendor has been paid for applicant's share of the invoice.
• FY26 Texas State Match forms must be sent to erate@tea.texas.gov

Forms & Templates

FY26 Texas State Match Form.A - Application for 2026 Texas State Match Funds

FY26 Texas State Match Form.B - Acceptance of 2026 Texas State Match Funds

Resources

• Unserved and Underserved Eligibility List
• FY26 Texas State Match Form.A (Word)
• Universal Service Administrative Co. (USAC) – Frequently Asked Questions (FAQS)
• FCC Broadband Data Collection Help Center