USAC issued the demand estimate for E-Rate FY 2018 in a letter to the FCC on 4/17/2018. Demand has been significantly reduced due to the "Category Two" budget cap per student that limits the amount schools and libraries can request for Internal Connections, Basic Maintenance of Internal Connections, and Managed Internal Broadband Services. Additionally, support for voice services has been phased out except for the lowest income applicants which only receive 10% Erate discount for FY2018.
The letter states the following:
The Universal Service Administrative Company’s (USAC’s) estimate of demand for the Schools and Libraries Universal Service Support Mechanism discounts for Funding Year (FY) 2018 is $2.77 billion, of which $2.025 billion is for Category 1 services and $745 million is for Category 2 services. This estimate is based on the total amount of funding that was requested in the FCC Form 471 applications received on or before March 22, 2018, the close of the FY2018 FCC Form 471 filing window (January 11, 2018 to March 22, 2018).