Federal Communications Commission	DA 21-1063



DA 21-1063
Released:  August 27, 2021

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 2021. The 2021 funding year runs from July 1, 2021 to June 30, 2022.  The E-Rate program is more formally known as the schools and libraries universal service support mechanism.  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 March 26, 2021, USAC submitted a demand estimate for the E-Rate program for funding year 2021. See Letter from Craig Davis, Vice President, Schools and Libraries Division, USAC, to Kris Monteith, Chief, Wireline Competition Bureau, FCC, CC Docket No. 02-6, at Attach. (Mar. 26, 2021).
  USAC estimates the total demand for funding year 2021 will be $3.03 billion, which includes estimated demand for category one services of $1.69 billion and of $1.34 billion for category two services. Id.  The demand estimate for funding year 2021 was reflected as $2.794 billion in the Fourth Quarter USF Size Projections.  See USAC, Federal Universal Service Support Mechanisms Fund Size Projections for Fourth Quarter 2021 (Aug. 2, 2021) https://www.usac.org/wp-content/uploads/about/documents/fcc-filings/2021/fourth-quarter/financials/USAC-4Q2021-Federal-Universal-Service-Mechanism-Quarterly-Demand-Filing_Final.pdf at 51 (Fourth Quarter 2021 USF Size Projections).
 
The Bureau announced that the E-Rate program funding cap for funding year 2021 is $4.27 billion. See Wireline Competition Bureau Announces E-Rate and RHC Programs’ Inflation-Based Caps for Funding Year 2021, CC Docket No. 02-6, Public Notice, DA 21-332 (WCB Mar. 19, 2021); 47 CFR § 54.507(a)(3).
  Additionally, according to USAC projections, $500 million in unused funds from prior funding years is available for use in E-Rate funding year 2021. See Fourth Quarter 2021 USF Size Projections at 51.
  
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 $4.27 billion and available carry forward funding of $500 million, there is sufficient funding to fully fund all category one and category two funding requests for funding year 2021.  We therefore direct USAC to fully fund eligible category one and category two requests, using the $500 million in E-Rate funds unused from prior years, and any additional funds needed under the current funding 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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