During the July 28th, 2014 USAC Schools & Libraries Committee Meeting, the Board recommended to the FCC that all FY 2014 Priority Two applications be denied because of lack of Universal Service Fund resources to cover the demand for Priority Two services and products. The FCC approved this recommendation, and on August 27th, 2014, the SLD released the first funding decision wave denying Priority Two applications, totaling $1.52 billion for 4,094 applicants.
This is the second consecutive funding year in which no E-rate applicant will receive any E-rate support for Priority Two projects. This decision ultimately affects the 5,300 applicants that specifically went through the competitive bidding and application process to secure these critical funds. There are an additional 1,300 applicants that will receive FY 2014 Priority Two denial letters in the coming weeks, totaling $712.7 million.