The FCC’s proposed consultant rules: what’s in the 2026 FNPRM
On June 25, 2026 the FCC adopted a sweeping Notice of Proposed Rulemaking reviewing the entire E-Rate program (published in the Federal Register August 14, 2026). One section aims squarely at consultants. Everything below is a proposal, not a rule — the comment cycle runs through late summer 2026 — but it signals where the program is heading.
What the FNPRM proposes for consultants
- Registration: individual Consultant Registration Numbers for each person (not just each firm).
- An annual sworn filing (a proposed Form 5654) certifying compliance.
- Mandatory training on program rules and fraud awareness before receiving EPC access.
- Mandatory Letters of Agency that describe the consultant–applicant relationship, with retention of LOAs, consulting agreements, and related records.
- A ban on percentage-of-funding fees — compensation contingent on funding secured.
The bigger question in the same rulemaking
The same document asks broader questions — including whether the E-Rate program should be limited or restructured. Education groups have filed strongly in support of the program; nothing is decided. Consultants advising nervous clients should keep the distinction sharp: asked-about is not adopted.
What a consultant can do now (no matter how the vote goes)
- Move to flat-fee agreements. If the percentage-fee ban lands, contingent-fee contracts will need restructuring; flat annual fees per category are already the cleanest model.
- Get LOAs on file for every client, describing scope and relationship — the thing the FCC proposes to require is the thing auditors already ask for.
- Keep records organized per district: agreements, LOAs, filings, correspondence. Proposed retention requirements only formalize existing audit reality.
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