Skip Navigation

Federal Communications Commission

English Display Options

Commission Document

Commissioner Pai Releases Financial Projections for E-Rate Proposal

Download Options

Released: July 10, 2014
image01-00.jpg612x792

NEWS

Federal Communications Commission

News Media Information: (202) 418-0500

445 12th Street, S.W.

Internet: http://www.fcc.gov

Washington, DC 20554

TTY: (888) 835-5322

This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action.

See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).

FOR IMMEDIATE RELEASE

CONTACT:

July 10, 2014

Matthew Berry (202) 418-2005

Email: Matthew.Berry@fcc.gov

OFFICE OF FCC COMMISSIONER AJIT PAI

RELEASES FINANCIAL PROJECTIONS FOR FCC’S E-RATE PROPOSAL

Proposal Slashes Funding Available for Internet Connectivity

Tomorrow, the FCC is scheduled to vote on a proposal to change E-Rate, a program designed to

help schools and libraries connect to the Internet. That proposal promises over $5 billion for Wi-Fi but

doesn’t identify where the money will come from to fund this new program.

After crunching the numbers provided by FCC staff, the Office of Commissioner Ajit Pai has

developed financial projections that validate the concerns of congressional leaders of both parties that the

proposal’s promises would come out of funding available today for Internet connectivity. Here are the

results:

Over the next five years, the FCC’s Wi-Fi proposal would cut over $2.7 billion

($2,716,652,262) in funding available for Internet connectivity for schools and libraries.

In Year 3, the proposal would cut over $645 million ($645,658,643) or 27% of funds

available for Internet connectivity.

In Year 4, the proposal would cut over $985 million ($985,937,579) or 39% of funds

available for Internet connectivity.

In Year 5, the proposal would cut over $1.085 billion ($1,085,056,039) or 41% of funds

available for Internet connectivity.

Because of these spending cuts, many rural schools would lose all of their funding for

Internet connectivity in Years 3 through 5.

The FCC’s Washington-knows-best approach would deprive local school districts of the

flexibility to meet local needs. By slashing funds available for Internet connectivity, the program will

likely provide many American students with “Wi-Fi to nowhere.”

Educators and librarians deserve better than more broken promises. The better course would be

fiscally responsible, student-centered E-Rate reform. This would promote digital learning and place trust

in local communities, instead of government officials in Washington, DC.

Note: We are currently transitioning our documents into web compatible formats for easier reading. We have done our best to supply this content to you in a presentable form, but there may be some formatting issues while we improve the technology. The original version of the document is available as a PDF, Word Document, or as plain text.

close
FCC

You are leaving the FCC website

You are about to leave the FCC website and visit a third-party, non-governmental website that the FCC does not maintain or control. The FCC does not endorse any product or service, and is not responsible for, nor can it guarantee the validity or timeliness of the content on the page you are about to visit. Additionally, the privacy policies of this third-party page may differ from those of the FCC.