The NBA has informed teams the new cap is expected to be at $99 million for the 17-18 season.
The most recent projection in April was at $101 million.
Before that lowered projection, it was at $103 million and was at one time projected to be as high as $108 million.
The cap for the 16-17 season was $94.1 million.
A drop in the number of playoff games played contributed to the drop, as did teams spending more in 2016 free agency than anticipated.