FCC Directs USAC to Fully Fund Eligible C1 and C2 E-Rate Requests

The Federal Communications Commission's Wireline Competition Bureau (Bureau) announced that there is sufficient funding available to fully meet the Universal Service Administrative Company’s (USAC) estimated demand for category one and category two requests for E-Rate-supported services for funding year 2025. On March 27, 2025, USAC submitted a demand estimate for the E-Rate program for funding year 2025.  USAC estimates the total demand for funding year 2025 will be $3.225 billion, which includes estimated demand for category one services of $1.806 billion, and of $1.418 billion for category two services. The Bureau announced that the E-Rate program inflation-based cap for funding year 2025 is $5.059 billion.  Additionally, as of March 31, 2025, USAC projects that $500 million in unused funds from prior funding years is available for use in E-Rate funding year 2024.5