Schools and Libraries

Step 6: "Two-in-Five Rule" for Internal Connections

Discounts for Internal Connections are available to an eligible entity two of every five funding years.

Starting in Funding Year 2005, eligible entities will only be able to receive support for Internal Connections in two of every five funding years.  This applies to individual recipients (individual school, library, or non-instructional facility).

For each eligible entity, the five-year period begins in any year, starting with Funding Year 2005, in which that entity receives support for Internal Connections. Entities can use two years within any five-year period.  
Funding year 2007 is the first year that entities will be ineligible for Internal Connections funding based on this rule. The Two-in-Five Tool gives you information on your eligibility for funding of Internal Connections requests for several funding years.

This rule does not apply to Telecommunications and Internet Access services, nor to Basic Maintenance of Internal Connections services categorized as Priority 2.  Basic Maintenance services are eligible for support each year if they are necessary to the operation of the Internal Connections network.

An entity will be considered to have used a year if that entity has been specified in Block 4 of the FCC Form 471, Services Ordered and Certification Form for one or more approved Internal Connections funding requests in that year.

Two-in-Five Tips

  • The rule:
    • applies at the individual school, library or non-instructional facility level;
    • applies regardless of the Billed Entity on the application;
    • does not count funding years used based on whether or not you have invoiced USAC;
    • applies regardless of the type of Internal Connections services. For example, you don’t have two years to get routers and two different years to get PBXs.
  • Carefully review the entities in Block 4 – include just those that will actually receive service.  If you include too many entities, then you will be using their years.  If you put in too few, USAC will not pay invoices for services delivered to those entities since they were not included in the original funding request.

If all requested Internal Connections funding requests are denied, then no Internal Connections support has been received for that funding year. Furthermore, if an FCC Form 500, Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation Form is submitted that cancels all approved Internal Connections funding requests prior to the receipt of any of the specified products and services, then no Internal Connections support has been received for that funding year.

Applicants can remove entities from a Block 4 worksheet in order to gain a year of eligibility for those entities under the Two-in-Five Rule. However, if USAC has disbursed funds on the Funding Request Number (FRN) that features that worksheet, the entities listed in the worksheet cannot regain a year.   The April 20, 2007 issue of our News Brief provides an example.

Applicants must cancel all of the Internal Connections funding associated with an entity in order to get a year back for that entity.  Applicants can use the Form 500 to cancel one or more FRNs in their entirety. 

For instructions on requesting removal of an entity please see the March 2, 2007, issue of our News Brief.


Last modified on 2/22/2008