§ 54.423   Budget.

   (a) Amount of the annual budget. The initial annual budget on federal
   universal support for the Lifeline program shall be $2.25 billion.

   (1) Inflation increase. In funding year 2016 and subsequent funding
   years, the $2.25 billion funding cap on federal universal service
   support for Lifeline 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 paragraph (a) of this section, the Commission shall
   use the Consumer Price Index for all items from the Department of
   Labor, Bureau of Labor Statistics. To compute the annual increase as
   required by this paragraph (a), the percentage increase in the Consumer
   Price Index from the previous year will be used. For instance, the
   annual increase in the Consumer Price Index from 2015 to 2016 would be
   used for the 2017 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 Consumer Price Index decreases or stays the same, the annual
   funding cap shall remain the same as the previous year.

   (3) The Wireline Competition Bureau shall issue a public notice on or
   before July 31 containing the results of the calculations described in
   § 54.403(a)(2) and setting the budget for the upcoming year beginning on
   January 1.

   (b) If spending in the Lifeline program meets or exceeds 90 percent of
   the Lifeline budget in a calendar year, the Wireline Competition Bureau
   shall prepare a report evaluating program disbursements and describing
   the reasons for the program's growth along with any other information
   relevant to the operation of the Lifeline program. The Bureau shall
   submit the report to the Commission by July 31st of the following year.

   [ 81 FR 33095 , May 24, 2016]

   Effective Date Note: At  81 FR 33095 , May 24, 2016, § 54.423 was added.
   This section contains information collection and recordkeeping
   requirements and will not become effective until approval has been
   given by the Office of Management and Budget.

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Subpart F—Universal Service Support for Schools and Libraries

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