PUBLIC NOTICE
Federal Communications Commission
445 12th St., S.W.
Washington, D.C. 20554
News Media Information 202 / 418-0500
Fax-On-Demand 202 / 418-2830
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Internet: http://www.fcc.gov
ftp.fcc.gov
DA 12-1148
Released:  July 18, 2012
WIRELINE COMPETITION BUREAU ANNOUNCES CARRY-FORWARD
OF UNUSED SCHOOLS AND LIBRARIES UNIVERSAL SERVICE FUNDS 
FOR FUNDING YEAR 2012
CC Docket No. 02-6
Pursuant to section 54.709(a)(3) of the Commission’s rules,
1
on April 26, 2012, the Universal 
Service Administrative Company (USAC) submitted projections of demand and administrative expenses 
for the federal Universal Service Fund for the third quarter of 2012.
2
  According to USAC’s projections, 
$400 million in unused funds from funding years 2003-2010 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.
3
  In addition, while preparing projections of demand and 
administrative expenses for the federal Universal Service Fund for the fourth quarter of 2012, USAC 
identified another $650 million available to be carried forward, for a total of $1.050 billion in funding 
available for funding year 2012.
4
Section 54.507(a)(3) of the Commission’s rules states that “[a]ll funds 
collected that are unused shall be carried forward into subsequent funding years for use in the [E-rate 
program] in accordance with the public interest and notwithstanding the annual cap.”
5
  
Consistent with the Commission’s rules, the Wireline Competition Bureau announces that $1.050 
billion in unused funds will be carried forward to increase disbursements to schools and libraries in 
funding year 2012 in excess of the annual cap.
6
                                                     
1
47 C.F.R. § 54.709(a)(3).
2
See Federal Universal Service Support Mechanisms Fund Size Projections for Third Quarter 2012, available at
http://www.usac.org/about/tools/fcc/filings/2012/Q3/USAC%203Q2012%20Federal%20Universal%20Service%20
Mechanism%20Quarterly%20Demand%20Filing.pdf.
3
Id. at 38.
4
Letter from Richard A. Belden, Chief Operating Officer, USAC, to Julie Veach. Chief, Wireline Competition 
Bureau, FCC (dated July 10, 2012), available at http://apps.fcc.gov/ecfs/document/view?id=7021985425.  USAC’s 
Universal Service Support Mechanism Fund Size Projections for the Fourth Quarter 2012 is due to be submitted to 
the Commission Aug. 2, 2012.  Id.
5
47 C.F.R. § 54.507(a)(3).  See also Schools and Libraries Universal Service Support Mechanism, CC Docket No. 
02-6, Third Report and Order and Second Further Notice of Proposed Rulemaking, 18 FCC Rcd 26912, 26933-35, 
paras. 52-57 (2003) (amending section 54.507(a) of the Commission's rules).
6
The 2012 funding year for purposes of the schools and libraries cap is July 1, 2012 to June 30, 2013.  See 47 
C.F.R. § 54.507(b).
For further information, please contact James Bachtell, Wireline Competition Bureau at (202) 
418-7400 or TTY (202) 418-0484.
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