USAC Recommends Denying All FY 2013 Priority 2 Requests

February 7, 2014

This afternoon the Schools and Libraries Committee of USAC voted to recommend to the FCC that Priority 2 requests (internal connections and basic maintenance of internal connections) at the 90% discount level be denied due to lack of funding. USAC had previously recommended to the FCC that P2 requests at the 89% discount level and below be denied, but the FCC never took action on that recommendation.

The FCC is expected to approve the USAC recommendation.

The demand for FY 2013 Priority 2 requests at the 90% level totaled $1.760 billion. After all Priority 1 requests are funded, there was only $250 million available to fund Priority 2.

Note: I do not believe that the FY 2013 P2 situation is an acknowledgement that Priority 2 funding will never be available again. To the contrary, I believe the reforms announced by the FCC this week (and that will be announced in the Public Notice that’s due to be released in a few weeks) will contain reforms aimed at ensuring more funding will be available for broadband equipment for all schools and libraries.

Please let me know if you have any questions.

– Julie

Julie Tritt Schell
PA E-rate Coordinator

717-730-7133 – o
717-730-9060 – f

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