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Carry-Forward of Unused E-rate Funds for Funding Year 2014

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Released: May 2, 2014


Federal Communications Commission

News Media Information 202 / 418-0500

445 12th St., S.W.


Washington, D.C. 20554

TTY: 1-888-835-5322

DA 14-609

Released: May 2, 2014




CC Docket No. 02-6

Pursuant to section 54.709(a)(3) of the Commission’s rules,1 on January 31, 2014, the Universal
Service Administrative Company (USAC) submitted projections of demand and administrative expenses
for the federal universal service fund for the second quarter of 2014.2 According to USAC’s projections,
$600 million in unused funds from previous funding years is available to carry forward to increase
disbursements to schools and libraries via the E-rate program, more formally known as the schools and
libraries universal service program.3 Section 54.507(a)(3) of the Commission’s rules states that “[a]ll
funds collected that are unused shall be carried forward into subsequent funding years for use in the [E-
rate program] in accordance with the public interest and notwithstanding the annual cap.”4
On March 28, 2014, pursuant to section 54.507(a) of the Commission’s rules,5 the Wireline
Competition Bureau announced that the E-rate program funding cap for Funding Year 2014 is
On April 17, 2014, USAC submitted an estimate of demand for the E-rate program for Funding
Year 2014 (July 1, 2014 to June 30, 2015) of $4.825 billion, which includes estimated demand for priority
one services (telecommunications, telecommunications services and Internet access) of $2.630 billion.7
USAC’s initial demand estimate is always higher than the commitments ultimately made by
USAC because some applicants withdraw requests for funding and other requests are adjusted downward

1 47 C.F.R. § 54.709(a)(3).
2 See USAC, Federal Universal Service Support Mechanisms Fund Size Projections for Second Quarter 2014,
Mechanism%20Quarterly%20Demand%20Filing.pdf (last visited May 2, 2014).
3 Id. at 42.
4 47 C.F.R. § 54.507(a)(3).
5 47 C.F.R. § 54.507(a).
6 See Wireline Competition Bureau Announces E-rate Inflation-Based Cap for Funding Year 2014, CC Docket No.
02-06, Public Notice, DA 14-426 (Wireline Comp. Bur. rel. Mar. 28, 2014).
7 See USAC, Estimate of Demand for Schools and Libraries Universal Service Support Mechanism for Funding
Year 2014, CC Docket No. 02-6 (filed Apr. 17, 2014), available at (last visited May 2, 2014).

after review. USAC estimates that to fully fund priority one services it will need $200 million more than
the Funding Year 2014 cap. Therefore, consistent with the Commission’s rules, the Wireline Competition
Bureau announces that $200 million in unused funds will be carried forward to ensure funding is available
for all eligible priority one funding requests received from schools and libraries in Funding Year 2014 in
excess of the annual cap.
For further information, please contact James Bachtell, Wireline Competition Bureau at (202)
418-7400 or TTY (202) 418-0484.
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