The E-Rate program provides 20-90% discounts on telecommunication services, internet access, and internal connections to schools and libraries. It allocates $2.25 billion annually from the Universal Service Fund. Schools and libraries qualify for E-Rate discounts based on the percentage of students eligible for the Federal Free and Reduced Lunch Program. E-Rate does not cover computers, fax machines, modems, software, professional development, or asbestos removal. Applicants must develop a technology plan and conduct a needs assessment to receive funding for eligible telecommunication and internet services.