Federal Communications Commission	DA 19-170


DA 19-170
Released:  March 8, 2019

WIRELINE COMPETITION BUREAU ANNOUNCES E-RATE AND RHC PROGRAMS’ INFLATION-BASED CAPS FOR FUNDING YEAR 2019

CC Docket No. 02-6
WC Docket No. 02-60

Pursuant to sections 54.507(a) and 54.675(a) of the Commission’s rules, 47 CFR §§ 54.507(a), 54.675(a).
 the Wireline Competition Bureau (Bureau) announces the E-Rate and Rural Health Care (RHC) programs’ funding caps for funding year 2019. The Commission’s rules require an adjustment of the E-Rate and RHC programs’ annual caps 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); Promoting Telehealth In Rural America, WC Docket No. 02-60, Order, 33 FCC Rcd 6574, 6580, para. 13 (2018) (RHC Program Funding Cap Order); 47 CFR §§ 54.507(a)(1)-(2), 54.675(a)(1)-(2).  The E-Rate program is more formally known as the Schools and Libraries universal service support program.
  The new caps represent a 2.2% inflation-adjusted increase in each program cap from funding year 2018. National Income and Product Accounts Table, Bureau of Economic Analysis, revised Feb. 28, 2019, Table 1.1.4, https://apps.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 107.932 in 2017 and 110.337 in 2018, we calculate an increase of 2.2%).  Note that the 2017 gross domestic product figure has been revised downward by BEA since the Bureau announced the E-Rate and RHC program funding caps for funding year 2018.  See Wireline Competition Bureau Announces E-rate Inflation-Based Cap for Funding Year 2018, CC Docket No. 02-06, Public Notice, 33 FCC Rcd 1923, n.3 (WCB 2018) (2018 Inflation Funding Cap PN) (using a gross domestic product figure of 113.427 for 2017 to determine E-Rate program funding cap for funding year 2018); RHC Program Funding Cap Order, 33 FCC Rcd at 6584, n.75 (using a gross domestic product figure of 113.425 for 2017 to determine RHC program funding cap for funding year 2018).


E-Rate Program:  The E-Rate program funding cap for funding year 2019 is $4,151,395,402. This represents a $89,364,676 increase for the E-Rate program funding cap as a whole, including a $66,450,160 increase for the category one services funding level and a $22,914,516 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 2019 funding year runs from July 1, 2019 to June 30, 2020.  
  The new cap represents a 2.2% inflation-adjusted increase in the $4,062,030,726 cap from funding year 2018. See supra note 3; 2018 Inflation Funding Cap PN.
  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. 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).


RHC Program:  The RHC Program funding cap for funding year 2019 is $593,782,000. This represents a $12,782,000 increase for the RHC program funding cap.  The 2019 funding year runs from July 1, 2019 to June 30, 2020.
  The new cap represents a 2.2% inflation-adjusted increase in the $581,000,000 cap from funding year 2018. See supra note 3; RHC Program Funding Cap Order, 33 FCC Rcd at 6584, para. 23.
  The Commission began indexing the funding cap to inflation in 2018 to ensure that RHC Program funding keeps pace with the changing broadband and telecommunications needs of rural healthcare providers. RHC Program Funding Cap Order, 33 FCC Rcd at 6583, para. 21.


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

2