NEWS
Federal Communications Commission
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This is an unofficial announcement of Commission action.  Release of the full text of a Commission order constitutes officia l action.
See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
News Media Information 202 / 418-0500
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FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT:
July 8, 2014 Matthew Berry, 202-418-2005
Email: matthew.berry@fcc.gov  
STATEMENT OF COMMISSIONER AJIT PAI
ON THE BREAKDOWN OF E-RATE NEGOTIATIONS
Any good math teacher would give the FCC’s E-Rate proposal an “F” because the 
numbers just don’t add up.  It promises over $5 billion for Wi-Fi but doesn’t identify where the 
money will come from to fund this new program.  As it stands, the proposal will blow a $2.7 
billion hole in E-Rate’s budget—one that the FCC has promised outside parties it’ll fill with a 
post-election increase in Americans’ phone bills.
The proposal also doesn’t pass the test in other respects.  Rather than giving small, rural 
schools and libraries a fair shake, it continues to direct the bulk of E-Rate funds to large, urban 
school districts.
Rather than fundamentally reforming the E-Rate bureaucracy, the plan doubles down on 
complexity.  Schools and libraries will still have to file reams of paperwork, operate on 
Washington’s timeline, and hire consultants—that is, if they participate in the program at all.
Rather than giving local school boards, principals, teachers, and librarians the flexibility 
to decide what services and technologies best meet their communities’ particular needs, the plan 
takes a Washington-knows-best mindset.  
I have been deeply engaged in this process since this item was circulated.  I reached out 
to the Chairman’s Office one week ago with a list of changes designed to address my concerns.  I 
have repeatedly made myself and my staff available to explain the rationale for my proposals and 
to find a middle ground.  I did all this because I wanted to support this item—because I believe, 
as I said almost exactly one year ago, that “E-Rate is a program worth fighting for.”
I was willing to meet the Chairman’s Office more than halfway, but today, they rejected 
almost every suggestion that I made.  Unfortunately, the Chairman’s Office has no interest in 
seriously negotiating with the Republican Commissioners and is determined to pass this item on 
a party-line vote.  
I am disappointed that this is becoming the Commission norm on high-profile items.  But 
I’m even more disappointed for America’s teachers, librarians, parents, students, and library 
patrons, many of whom I’ve met over the past many months, who will have to wait years more 
for 21
st
-century digital opportunities—for real E-Rate reform.