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 18-163
Released:  February 20, 2018
WIRELINE COMPETITION BUREAU ANNOUNCES E-RATE INFLATION-BASED 
CAP FOR FUNDING YEAR 2018
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 2018 is $4,062,030,726.
2
  The 
new cap represents a 1.8 percent inflation-adjusted increase in the $3,990,207,000 cap from funding year 
2017.
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 $71,823,726 increase for the E-rate program funding cap as a whole, including a $53,407,386 
increase for the category one services funding level and a $18,416,340 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 2018 funding year runs from July 1, 2018 to June 30, 2019.  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. 26, 2018, Table 1.1.4, 
https://www.bea.gov/iTable/iTable.cfm?reqid=19&step=2#reqid=19&step=3&isuri=1&1910=x&0=-
99&1921=survey&1903=4&1904=2015&1905=2017&1906=a&1911=0 (GDP-CPI table; based on gross domestic 
product of 111.419 in 2016 and 113.427 in 2017, we calculate an increase of 1.8%). Note that the 2016 gross 
domestic product figure of 111.419 has been revised downward by BEA since the Bureau announced the E-rate 
program funding cap for funding year 2017 last year. See Wireline Competition Bureau Announces E-rate Inflation-
Based Cap for Funding Year 2017, CC Docket No. 02-06, Public Notice, 32 FCC Rcd 1869, n.3 (WCB 2017).
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).