FCC E-Rate Program Announces Carry-Forward of Unused Service Funds for 2015

Pursuant to section 54.709(a)(3) of the Commission’s rules, on January 30, 2015, the Universal Service Administrative Company (USAC) submitted projections of demand and administrative expenses for the federal universal service fund for the second quarter of 2015. According to USAC’s projections, $1.575 billion in unused funds from previous funding years is available to carry forward to increase disbursements to schools and libraries via the E-rate program, more formally known as the schools and libraries universal service program. In the second quarter of each calendar year, all funds that are collected and unused from prior years shall be available for use in the next full E-rate funding year.  The Chief of the Wireline Competition Bureau is delegated authority to determine the proportion of unused funds to meet category one demand and to direct USAC to use any remaining funds to provide category two support.

Pursuant to the Second E-rate Modernization Order, the E-rate cap for Funding Year 2015 is $3.9 billion.

On May 6, 2015, USAC submitted an estimate of demand for the E-rate program for Funding Year 2015 (July 1, 2015 to June 30, 2016) of $3.92 billion, which includes estimated demand for category one services (telecommunications, telecommunications services and Internet access) of $2.255 billion and of $1.665 billion for category two services (internal connections, basic maintenance of internal connections and managed internal broadband services). No unused funding from previous years is needed to fully fund category one services. We therefore direct USAC to fully fund eligible category one services under the new cap. We also direct USAC to fully fund eligible category two services, first using as much as $1.575 billion in E-rate funds unused from previous years, and then using any additional funds needed under the new cap to fully meet demand.

For further information, please contact James Bachtell, Wireline Competition Bureau at (202) 418-7400 or TTY (202) 418-0484.

E-rate FY 2015 Carry-Forward Public Notice  https://www.fcc.gov/document/e-rate-fy-2015-carry-forward-pn

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