The FCC has approved the USAC Schools and Libraries Committee’s recommendation to deny Funding Year 2011 Priority Two requests at or below the 79% discount level. Funding Year 2011 Wave 38, issued on March 13th, was the first wave that reflected denials due to program demand. The decision impacts 610 applicants, with requests totaling $87.7 million. Currently, USAC is funding FY 2011 P2 applications at the 90% level only. To date, 1,844 applicants have received commitments, totaling $253 million. There are still 1,791 P2 applications pending at 90%, totaling $787 million. It is expected that the final FY 2011 P2 discount threshold will not be set for several months.