This week the USAC Schools and Libraries Committee held a non-quarterly board meeting and due to demand and available funds recommended to the FCC that they deny priority two requests at 84% and below. However, at this point, the FCC has approved the denial of priority two discounts at the 82% discount threshold.
In the next couple of weeks the SLD will start issuing FY 2006 funding waves in which they will start to fund priority two applications at the 86%. There is $73 million in priority two requests pending at the 86% level. Hopefully because of the 2-5 rule, limits on transferability and use of rollover funds, we will start to see the priority two discount threshold go down below 80% in future years.