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USF Collection and Disbursement Process

Senator Thune (R-SD) recently sent a letter to the FCC inquiring about the Universal Service Fund collections and disbursement process.  Senator Thune is the Chair of the Senate Commerce Committee that has jurisdiction over FCC policy issues. FCC Chairman Ajit Pai responded to Senator Thune on September 5th and described the process in detail. In regards to the specifics tied to the E-rate program, Pai wrote:
“The FCC also has provided guidance to help USAC manage E-rate funds and understand which funds can be canied forward, by instructing USAC on how to reserve for potential disbursements. Recently, the Commission's Office of Managing Director (OMD) provided guidance directing USAC to reserve 100 percent of the funds it would need to cover three categories of potential disbursements: (1) pending applications; (2) funding that has been committed but not yet disbursed; and (3) appeals pending with USAC and the Commission. It also reminded USAC of the relationship between reserving funds for potential disbursements for each funding year and the carry forward procedures, the importance of accurately representing unused funds on a quarterly basis, and that USAC should include any de-obligated and unused 3 funds for each funding year in its proposed carry forward amount.”
FCC Chairman’s September 5th letter can be viewed here.
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