Federal Communications Commission	DA 19-669



DA 19-669
Released:  July 17, 2019

WIRELINE COMPETITION BUREAU DIRECTS USAC TO FULLY FUND ELIGIBLE CATEGORY ONE AND CATEGORY TWO E-RATE REQUESTS
CC Docket No. 02-6
In this Notice, the Wireline Competition Bureau (Bureau) announces that there is sufficient funding available to fully meet the Universal Service Administrative Company’s (USAC) estimated demand for category one and category two requests for E-Rate supported services for funding year 2019. The 2019 funding year runs from July 1, 2019 to June 30, 2020.  The E-Rate program is more formally known as the schools and libraries universal service support program.  Category one services include telecommunications, telecommunications services and Internet access.  Category two services include internal connections, basic maintenance of internal connections and managed internal broadband services.

On April 1, 2019, USAC submitted a demand estimate for the E-Rate program for funding year 2019. See Letter from Catriona Ayer, Vice President, Schools and Libraries Division, USAC, to Kris Monteith, Chief, Wireline Competition Bureau, FCC, CC Docket No. 02-6, at Attach. (Apr. 1, 2019).
  It estimates the total demand for funding year 2019 will be $2.896 billion, which includes estimated demand for category one services of $1.91 billion and of $985 million for category two services. Id.  The demand estimate for funding year 2019 has since been adjusted to $2.597 billion. See USAC, Federal Universal Service Support Mechanisms Fund Size Projections for Third Quarter 2019 (May 2, 2019), https://www.usac.org/about/tools/fcc/filings/2019/q3/USAC%203Q2019%20Federal%20Universal%20Service%20Mechanism%20Quarterly%20Demand%20Filing_Final.pdf, at 66 (Third Quarter USF Size Projections).
 
The Bureau announced that the E-Rate program funding cap for funding year 2019 is $4.15 billion. See Wireline Competition Bureau Announces E-Rate and RHC Programs’ Inflation-Based Caps for Funding Year 2019, CC Docket No. 02-06, Public Notice, 34 FCC Rcd 1138 (WCB 2019); 47 CFR § 54.507(a)(3).
  Additionally, according to USAC projections, $1 billion in unused funds from previous years is available for use in E-Rate funding year 2019. See Third Quarter USF Size Projections at 66.
  
The Chief of the Bureau is delegated authority to determine the proportion of unused funds needed to meet category one demand and to direct USAC to use any remaining funds to provide category two support. 47 CFR § 54.507(a)(5).  
  In light of the current funding cap of $4.15 billion and available carry forward funding of $1 billion, there is sufficient funding to fully fund all category one and category two funding requests.  We therefore direct USAC to fully fund eligible category one and category two requests, using the $1 billion in E-Rate funds unused from previous years, and any additional funds needed under the current cap to fully meet demand for such services.
For further information, please contact James Bachtell, Wireline Competition Bureau at (202) 418-7400 or TTY (202) 418-0484.
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