The universal service support program for K-12 schools and libraries is often called the E-rate or Education Rate.

The Federal Telecommunications Act passed in the Spring of 1996 called for major changes in the telecommunications industry. The act placed an emphasis on competition and deregulation, and included new rules on who could tap funds in an account known as the Universal Service Fund (USF).

On May 8, 1997, the Federal Communications Commission released a Report and Order on Universal Service. Section 254(h) of the Telecommunications Act of 1996, better known as the Snowe-Rockefeller-Exon-Kerrey amendment, states that schools and libraries should have access to telecommunications services for educational purposes at discounted rates.