The FCC has authorized USAC to deny all FY2013 Priority Two funding requests. As reported by USAC, the FCC on February 24 approved a USAC recommendation to deny requests for 90% discounts on internal connections and basic maintenance.  USAC had previously received authorization from the FCC to deny priority two discount requests of 89% and below.

FY2013 is the first year that action has been taken to deny all internal connections and basic maintenance requests. On February 1, 2014, USAC reported that there was $600 million that could be rolled into FY2013. However, this amount fell far short of the record $1.79 billion requested for 90% priority two discounts. In a February 20 blog post, FCC Associate Bureau Chief Trent Harkradar made clear that there was insufficient funding for internal connections in FY2013 and laid out the FCC’s rationale for denying these requests.

This week’s decision directly impacts 4,436 applicants who were still awaiting word on their FY 2013 priority two funding requests. Denial letters will be released on March 5, 2014, as part of the FY2013 funding wave 41. Funding wave reports are available on