Advisory Alert: New FCC Order Increases E-rate Program by $1.5 Billion Annually, and Introduces a Number of New Changes Including “Equalizing” Treatment of Lit and Dark Fiber

On December 19, the FCC released the text of its Second Report and Order in its E-rate modernization proceeding. The new Order increased the annual spending cap on the E-rate program by an additional $1.5 billion—taking the cap from $2.4 billion to $3.9 billion per year starting in the 2015-2016 funding year. This increase was expected after its prior order in July announced a new two-year initiative to fund deployment of WiFi but stopped short of raising the cap. The FCC predicts that requests for funding will “not . . . immediately” reach the new cap, although it notes that it is not possible to “perfectly predict” what levels of funding school and libraries will seek in upcoming funding years. (The new Order also extends the $1 billion annual WiFi initiative for an additional three years, without explicitly noting whether those funds are subject to the overall cap.)

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