The Federal Communications Commission has ordered that approximately $600 million in unused funds from previous years be rolled into the pool of available funding for the 2008 funding year which begins on July 1.
This additional funding will allow the Universal Service Administrative Company to make E-rate funding commitments for Priority Two service requests for the upcoming funding year. Last year, the FCC rolled over about $650 million for FY 2007, which allowed the discount threshold for Priority Two services to drop to 81%.
In May, USAC reported to the FCC that approximately $600 million is available from FY 2002-2004 for future use. Historically, tens of millions of committed dollars go unused because of missed deadlines, staff turnover, lack of understanding of program rules, and overestimation of the amount of funding needed. The FCC's 3rd Report and Order allows for the carryover of unused funds from previous funding years to increase the overall funds available for disbursement.
The FY 2008 FCC Carryover Notice can be viewed here.