On June 6, 2018, FCC Chairman Ajit Pai circulated a draft Order that would increase the overall funding cap for the Universal Service Fund’s Rural Health Care program by $171 million. The current funding cap is $400 million which was originally set in 1997, but the demand for this program has surged over the last few years and outpaces the budget cap. The increase represents an inflation adjustment. For this past funding year, USAC had to prorate the RHC support due to the demand increase.

The proposed funding increase would not impact the overall funding for the E-rate program.  Further information on this proposed increase can be found here.