§  54.619   Cap.

   (a) Amount of the annual cap. The aggregate annual cap on federal
   universal service support for health care providers shall be $571
   million per funding year, of which up to $150 million per funding year
   will be available to support upfront payments and multi-year
   commitments under the Healthcare Connect Fund Program.

   (1) Inflation increase. In funding year 2018 and subsequent funding
   years, the $571 million cap on federal universal support in the Rural
   Health Care Program shall be increased annually to take into account
   increases in the rate of inflation as calculated in paragraph (a)(2) in
   this section. In funding year 2020 and subsequent funding years, the
   $150 million cap on multi-year commitments and upfront payments in the
   Healthcare Connect Fund Program shall also be increased annually to
   take into account increases in the rate of inflation as calculated in
   paragraph (a)(2) in this section.

   (2) Increase calculation. To measure increases in the rate of inflation
   for the purposes of paragraph (a)(1) in this section, the Commission
   shall use the Gross Domestic Product Chain-type Price Index (GDP-CPI).
   To compute the annual increase as required by paragraph (a)(1) in this
   section, the percentage increase in the GDP-CPI from the previous year
   will be used. For instance, the annual increase in the GDP-CPI from
   2017 to 2018 would be used for the 2018 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. This percentage increase
   shall be added to the amount of the annual Rural Health Care Program
   funding cap and the internal cap on multi-year commitments and upfront
   payments in the Healthcare Connect Fund Program from the previous
   funding year. If the yearly average GDP-CPI decreases or stays the
   same, the annual Rural Health Care Program funding cap and the internal
   cap on multi-year commitments and upfront payments in the Healthcare
   Connect Fund Program shall remain the same as the previous year.

   (3) Public notice. After calculating the annual Rural Health Care
   Program funding cap and the internal cap on multi-year commitments and
   upfront payments in the Healthcare Connect Fund Program based on the
   GDP-CPI, the Wireline Competition Bureau shall publish a public notice
   in the Federal Register within 60 days announcing any increase of the
   annual funding cap based on the rate of inflation.

   (4) Amount of unused funds. All unused collected funds shall be carried
   forward into subsequent funding years for use in the Rural Health Care
   Program in accordance with the public interest and notwithstanding the
   annual cap. The Administrator, on a quarterly basis, shall report to
   the Commission on unused Rural Health Care Program funding from prior
   years.

   (5) Application of unused funds. On an annual basis, in the second
   quarter of each calendar year, all unused collected funds from prior
   years shall be available for use in the next full funding year of the
   Rural Health Care Program notwithstanding the annual cap as described
   in paragraph (a) in this section. The Wireline Competition Bureau, in
   consultation with the Office of the Managing Director, shall determine
   the proportion of unused funding for use in the Rural Health Care
   Program in accordance with the public interest to either satisfy demand
   notwithstanding the annual cap, reduce collections for the Rural Health
   Care Program, or to hold in reserve to address contingencies for
   subsequent funding years. The Wireline Competition Bureau shall direct
   the Administrator to carry out the necessary actions for the use of
   available funds consistent with the direction specified in this
   section.

   (b) [Reserved]