Approved but never claimed: how E-rate money lapses after it is awarded

A funding commitment letter feels like the end of the process. It is not. Approved money still has to be claimed, and every claim has a deadline.

Two ways to be paid

• The vendor bills USAC directly and gives you a discounted bill. You do nothing more to collect.
• You pay the full bill and claim the discount back by filing an invoice form. If you miss the deadline, the money lapses.

The deadlines

The service-started form must be certified within 120 days of the service start date or of the funding letter, whichever is later. File late and the start date moves and the funding is cut to match.

Invoice deadline rules changed on June 18, 2026. The deadline is now the latest of: 120 days after the last date to receive service; 120 days after the funding letter; 120 days after a revised funding letter; or 60 days after a first denial of a timely claim. You can request one 120-day extension per funding request, before or within 15 days after the original deadline.

What the data shows

In our count of USAC's funding records, 8,644 applicants have 2024 funding that was approved, never paid out, and is now past its deadline: about $215 million in total. Part of that is services that came in under budget, which is not a loss. The rest is money that was granted and then simply not collected.

For funding year 2025, most equipment claim deadlines fall in late January 2027. If your district has approved 2025 equipment funding that has not been paid out, that is the date to watch.