Commissioner Pai Releases Financial Projections for E-Rate Proposal
NEWS
Federal Communications Commission
News Media Information: (202) 418-0500
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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.
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