On August 5, 2011, the FCC announced that the Funding Year 2011 cap will be increased .9% above the FY2010 funding cap of $2,270,250,000 for a total of $2,290,682,250.
When the E-rate program began in 1998, the funding cap was set at $2.25 billion. However, the price for advanced telecommunications services has continued to increase. The FCC recognized this issue and as part of the Sixth Report & Order, each year the FCC will now adjust the funding cap upward and index the cap measured by inflation.
The FCC will also announce in the near future how much of the unused funds from previous years they will roll over into FY2011. These policy decisions have a direct impact on how many applicants will ultimately receive Priority Two E-rate dollars. USAC reported they potentially have $1.1 billion available that could be rolled over into FY2011.
