PUBLIC NOTICE
Federal Communications Commission
445 12
th
St., S.W.
Washington, D.C. 20554
News Media Information 202 / 418-0500
Internet: https://www.fcc.gov
TTY: 1-888-835-5322
DA 17-243
Released:  March 13, 2017
WIRELINE COMPETITION BUREAU ANNOUNCES E-RATE INFLATION-BASED 
CAP FOR FUNDING YEAR 2017
CC Docket No. 02-6
Pursuant to section 54.507(a) of the Commission’s rules,
1
the Wireline Competition Bureau 
(Bureau) announces that the E-rate program funding cap for funding year 2017 is $3,990,207,000.
2
  The 
new cap represents a 1.3 percent inflation-adjusted increase in the $3,939,000,000 billion cap from 
funding year 2016.
3
  The Commission began indexing the funding cap to inflation in 2010 to ensure that 
E-rate program funding keeps pace with the changing broadband and telecommunications needs of 
schools and libraries.
4
  
For further information, please contact James Bachtell, Wireline Competition Bureau at (202) 
418-7400, or (202) 418-0484 (TTY).
- FCC -
                                                     
1
47 CFR § 54.507(a). Sections 54.507(a)(1) and (2) of the Commission’s rules require an adjustment of the E-rate 
program’s annual cap based on the gross domestic product chain-type price index (GDP-CPI) measure of inflation.  
See Schools And Libraries Universal Service Support Mechanism; A National Broadband Plan For Our Future, CC 
Docket No. 02-6, GN Docket No. 09-51, Order, 25 FCC Rcd 18762, 18782, para. 39 (2010) (E-rate Sixth Report and 
Order); 47 CFR §§ 54.507(a)(1), (2).
2
This represents a $51,207,000 increase for the E-rate program funding cap as a whole, including a $38,077,000
increase for the category one services funding level and a $13,130,000 increase for the category two services 
funding level.  See 47 CFR § 54.507(a)(3) (noting that the Bureau will release a public notice “announcing any 
increase of the annual funding cap including any increase to the $1 billion funding level available for category two 
services based on the rate of inflation”).  The 2017 funding year runs from July 1, 2017 to June 30, 2018.  The E-rate 
program is more formally known as the Schools and Libraries universal service support program.
3
National Income and Product Accounts Table, Bureau of Economic Analysis, revised Jan. 27, 2016, Table 1.1.4, 
https://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1#reqid=9&step=3&isuri=1&904=2012&903=4&906=a&
905=1000&910=x&911=0 (GDP-CPI table; based on gross domestic product of 109.999 in 2015 and 111.452 in 
2016, we calculate an increase of 1.3 percent).
4
E-rate Sixth Report and Order, 25 FCC Rcd at 18781, para. 36.  The Commission did not increase the funding cap 
in funding year 2015 pursuant to section 54.507(a)(1) of the Commission’s rules. 47 CFR § 54.507(a)(1).