FEDERAL COMMUNICATIONS COMMISSION 
WASHINGTON 
OFFICE OF 
THE CHA.IA MA."' 
The llonorable Mark Paean 
U. S. llouse of Representatives 
313 Cannon llouse Office Building 
Washington, D.C. 205 15 
Dear Congressman Paean: 
January 23, 20 15 
Thank you for your letter supporting increased funding for the E-rate program. I agree 
with your views that increased investment in theE-rate program will provide technology 
essential for providing students with the skills necessary for the modem workforce. Access to 
high speed broadband will increase educational opportunities for students throughout the United 
tates, including for students in Wisconsin. 
I consider modernization of the E-rate program among the most important tasks currently 
facing this Commission. This past July, the Commission approved the first major modification 
in the E-rate program's 18 year history. TheE-Rate Modernization Order took significant steps 
towards addressing the Wi-Fi gap in America's schools and libraries. We established an annual 
funding target of $1 billion for Wi-Fi, as well as a fairer method for distributing funds so that all 
schools and libraries can benefit, including far more rural schools and libraries than in the past. 
Based on Commission analysis, Wisconsin, in particular, could benefit by up to $9 1 million in 
new Wi-Fi funding to impact over 985,000 students in approximately 3, I 00 schools and 460 
libraries. 
llowever, American schools and libraries still face a connectivity gap. 1 wo-thirds of 
schools and libraries do not subscribe to sufficient high-speed connectivity. In addition, nearly 
one-third of all schools and three-fourths of all libraries cannot get a high-speed connection 
because the infrastructure simply is not available. This gap is wor t in rural America. But it is 
not just rural communities that arc being di proportionately left behind. Low-income schools in 
both rural and urban communities significantly lag behind affluent schools. Nearly 40 percent of 
artlucnt schools have high-speed access versu less than 15 percent of lower-income urban and 
rural schools. 
Closing this connectivity gap requires raising theE-rate spending cap. Our December 
Modernization Order took the critical step of making more funding available for schools and 
libraries to purchase broadband cormectivit) capable of delivering speeds up to I Gbps over the 
next five years. We have looked long-term to forecast the funding nl.!eds going forv.ard and 
based the nev.. $3.9 billion spending cap on those fore~asts. This mcrease is the first reset of the 
cap since it was initially set at $2.25 bill ion in J 997, an amount that was not atljusted for 
inflation until2010. 
Page 2 The llonorable Mark Pocan 
What ""ill actually be spent and the rate that Americans will be asked to contribute 
wi II var) from year to year. E-rate is funded by fees on consumers' phone bi lis. A':> ) ou note, 
the increase may over time require Americans to contribute approximately 16 cents a month for a 
telephone line annually about the cost of a cup of coffee at Dunkin· Donuts. 
I can assure you that! take the fiduciary responsibili ty over the investment of America's 
contributions very seriously. That is why we have placed an emphasis on improving the cost­
effectiveness of the program. The December Order makes further changes to the E-ratc program 
rules to ensure more competition for E-rate dollars and to maximize the cost-effectiveness of E­
rate supported purchases. 
I appreciate your interest in this matter. Please let me knov. if 1 can be of an) further 
assistance. 
:;ji~ 
Tom Wheeler