# 47 C.F.R. § 54.507 (2026): Cap

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_507

## Section

- **Citation:** 47 C.F.R. § 54.507 (2026)
- **Heading:** Cap
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 47 CFR: Telecommunication / Chapter I / Part 54 / Subpart F / § 54.507: § 54.507   Cap.

## Text

(a) Amount of the annual cap. The aggregate annual cap on federal universal service support for schools and libraries shall be $3.9 billion per funding year, of which $1 billion per funding year will be available for category two services, as described in § 54.502(a)(2), unless demand for category one services is higher than available funding. (1) Inflation increase. In funding year 2016 and subsequent funding years, the $3.9 billion funding cap on federal universal service support for schools and libraries shall be automatically increased annually to take into account increases in the rate of inflation as calculated in paragraph (a)(2) of this section. (2) Increase calculation. To measure increases in the rate of inflation for the purposes of this paragraph (a), the Commission shall use the Gross Domestic Product Chain-type Price Index (GDP-CPI). To compute the annual increase as required by this paragraph (a), the percentage increase in the GDP-CPI from the previous year will be used. For instance, the annual increase in the GDP-CPI from 2008 to 2009 would be used for the 2010 funding year. The increase shall be rounded to the nearest 0.1 percent by rounding 0.05 percent and above to the next higher 0.1 percent and otherwise rounding to the next lower 0.1 percent. This percentage increase shall be added to the amount of the annual funding cap from the previous funding year. If the yearly average GDP-CPI decreases or stays the same, the annual funding cap shall remain the same as the previous year. (3) Public notice. When the calculation of the yearly average GDP-CPI is determined, the Wireline Competition Bureau shall publish a public notice in the Federal Register within 60 days announcing any increase of the annual funding cap including any increase to the $1 billion funding level available for category two services based on the rate of inflation. (4) Filing window requests

## Nearby sections

- [47 C.F.R. § 54.500 (2026) § 54.500   Terms and definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_500.md)
- [47 C.F.R. § 54.501 (2026) § 54.501   Eligible recipients.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_501.md)
- [47 C.F.R. § 54.502 (2026) § 54.502   Eligible services.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_502.md)
- [47 C.F.R. § 54.503 (2026) § 54.503   Competitive bidding requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_503.md)
- [47 C.F.R. § 54.504 (2026) § 54.504   Requests for services.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_504.md)
- [47 C.F.R. § 54.505 (2026) § 54.505   Discounts.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_505.md)
- [47 C.F.R. § 54.507 (2026) § 54.507   Cap.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_507.md)
- [47 C.F.R. § 54.511 (2026) § 54.511   Ordering services.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_511.md)
- [47 C.F.R. § 54.513 (2026) § 54.513   Resale and transfer of services.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_513.md)
- [47 C.F.R. § 54.514 (2026) § 54.514   Payment for discounted services.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_514.md)
- [47 C.F.R. § 54.515 (2026) § 54.515   Distributing support.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_515.md)
- [47 C.F.R. § 54.516 (2026) § 54.516   Auditing and inspections.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_516.md)
- [47 C.F.R. § 54.519 (2026) § 54.519   State telecommunications networks.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_519.md)
- [47 C.F.R. § 54.520 (2026) § 54.520   Children's Internet Protection Act certifications required from recipients of discounts under the federal universal service support mechanism for schools and libraries.](https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_520.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T47_P54_S54_507. Check the current official text before relying on it. Not legal advice.