FY 2016:
Wave 46 for FY 2016 was released last Wednesday, May 10th for a total of $29.6 million. Cumulative national funding through Wave 46 is $2.62 billion. Wave 47 is scheduled to be released on Thursday, May 18th.
At this point in the year, just as the FY 2017 application window has closed, it is useful to look at the processing of FY 2016 applications in some detail. The following table shows the status of all FY 2016 applications as of Wave 46. Please note the following:
The 1,721 number of applications still pending is a bit misleading because a large, but unreported, number have been characterized by USAC as being on “legal hold,” under some form of detailed investigation. These applications may remain in limbo for some time. We suspect these applications are largely those indicated by “No Status Reported” or “Waiting for Heightened Scrutiny.”
USAC continues to experience system processing problems with a small subset of applications including some recently activated for Initial Review (“IR”) and those shown as “Wave Ready.”
FY 2017:
USAC provided the FCC with the following preliminary demand estimate for the next funding year (see cover letter and preliminary demand table):
Category 1 |
|
$2.296 billion |
Category 2 |
|
$0.904 |
Total Demand |
|
$3.200 billion |
USAC’s preliminary demand table is broken down by discount bands. Remember, as reflected in the table:
- The phase-out of discounts for voice services is 60% for FY 2017, so the maximum discount for voice is 30%; and
- Under the E-Rate Modernization Orders, the maximum discount for Category 2 is 85%.
The final demand level for FY 2017 may be somewhat higher or lower than the preliminary demand figure. Several factors come into play, including:
- Final demand is typically reduced by requests subsequently canceled by applicants or denied during PIA review.
- USAC’s FRN Status Tool, queried the weekend after the close of the application window showed an additional $8 million in demand. This figure did not account for requested amounts of approximately $16 million associated with 400 FRNs apparently erroneously showing $0 requested on otherwise valid entries.
- Final demand can be increased to the extent the FCC waives the application window deadline for additional late-filed applications (specifically, as has been the FCC’s precedent, for applications filed within two weeks of the original deadline — in this year’s instance, by Thursday, May 25th).
The FCC has approved (DA 17-462) USAC’s PIA procedures for FY 2017, and PIA application reviews have already begun. Before funding waves begin for FY 2017, the FCC will be reviewing USAC’s demand estimates and will be setting a roll-over funding amount. Based on our estimate of roll-over funding, plus current FCC rules for new funding this year, there appears to be approximately $5.3 billion available for FY 2017 — well in excess of the demand for both Category 1 and Category 2. Funding waves for FY 2017 are expected to begin in early June and a number of applications have already been designated “Wave Ready.”