FCC Announces Carry-Forward of Unused Schools and Libraries Universal Service Funds for Funding Year 2013

On May 2, 2013, the Universal Service Administrative Company (USAC) submitted projections of demand and administrative expenses for the federal universal service fund for the third quarter of 2013. According to USAC’s projections, $450 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. The Federal Communications Commission’s rules state that “[a]ll funds collected that are unused shall be carried forward into subsequent funding years for use in the [Erate program] in accordance with the public interest and notwithstanding the annual cap.”

Consistent with the FCC’s rules, the Wireline Competition Bureau announces that $450 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 2013 in excess of the annual cap.