Federal

Auditors Are Critical of the FCC’s Stewardship of the E-Rate Program

March 22, 2005 2 min read
  • Save to favorites
  • Print

The Federal Communications Commission is doing a poor job of overseeing the E-rate program, the Government Accountability Office said in a report last week.

The report, “Greater Involvement Needed by FCC in the Management and Oversight of the E-rate Program,” is available from the GAO. ()

According to the congressional watchdog agency, the FCC has not devised useful performance goals and measures for the program, which provides money to schools and libraries for Internet connections and other telecommunications costs. Because the FCC did not isolate the impact of E-rate money in connecting schools, it remains unclear to what extent increases in such schools can be attributed to the federal funds, the GAO says.

The commission has shifted important responsibilities to the Universal Services Administrative Co., or USAC, a quasi-private entity that administers the program, the report notes. Combined with the FCC’s lax oversight, that move has permitted fraud and abuse to occur, the report contends.

The “education rate” program, which has channeled nearly $14 billion in aid to schools and libraries since its inception in 1997, provides eligible institutions with discounts of up to 90 percent on telecommunications services and Internet access. There have been numerous allegations of fraud, waste, and abuse by recipients and vendors.

The GAO report was released at a March 16 congressional hearing, where the FCC came under fire.

“The mismanagement of the E-rate program seems to know few bounds,” Rep. Joe L. Barton, R-Texas, the chairman of the House Energy and Commerce Committee, said at the hearing before the panel’s oversight and investigations subcommittee.

The GAO report, which led some lawmakers to question whether the FCC was the best agency to oversee the program, reviews how the structure of the E-rate program has affected its management by the FCC, looks into the development and use of performance goals and measures, and assesses the effectiveness of the current accountability measures imposed by the agency.

According to the report, the role of USAC has made it difficult for the FCC to ensure that accountability and financial requirements for the E-rate program are met.

A Move to Education Dept.?

To address those issues, the report recommends that the FCC establish E-rate performance goals and measures, examine which federal accountability requirements apply to the E-rate, and reduce the backlog of recipients’ appeals on funding decisions.

Jeffrey Carlisle, the chief of the FCC’s wireline competition bureau, defended the management of the program. He pointed out the commission has adopted new rules for the recovery of improperly disbursed funds and directed USAC to conduct extensive audits of E-rate beneficiaries.

“We believe that the current USAC structure is consistent with congressional intent and conforms to congressional guidance,” he said in a statement.

While several members of subcommittee expressed a desire to see the program continue, they questioned Mr. Carlisle on why the commission has been slow to recover misused funds, why structural and administrative changes were not made earlier, and whether the FCC is the most competent agency to oversee the E-rate.

“The only logical place it could go—and I’ll make no friends by saying this—is the U.S Department of Education,” Mr. Carlisle replied. The FCC, he said, is a relatively small agency and has done the best it could to direct the program efficiently.

Related Tags:

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
Belonging as a Leadership Strategy for Today’s Schools
Belonging isn’t a slogan—it’s a leadership strategy. Learn what research shows actually works to improve attendance, culture, and learning.
Content provided by Harmony Academy
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Too Many Initiatives, Not Enough Alignment: A Change Management Playbook for Leaders
Learn how leadership teams can increase alignment and evaluate every program, practice, and purchase against a clear strategic plan.
Content provided by Otus
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
Beyond Teacher Tools: Exploring AI for Student Success
Teacher AI tools only show assigned work. See how TrekAi's student-facing approach reveals authentic learning needs and drives real success.
Content provided by TrekAi

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Federal Ed. Dept. Hangs Banner of Charlie Kirk Alongside MLK Jr., Ben Franklin
It's part of a celebration of the nation's 250th anniversary.
1 min read
New banners of Booker T. Washington, Catharine Beecher and Charlie Kirk hang from the Department of Education, Sunday, March 1, 2026, in Washington.
New banners of Booker T. Washington, Catharine Beecher, and Charlie Kirk hang from the U.S. Department of Education on March 1, 2026, in Washington.
Allison Robbert/AP
Federal Ed. Dept. Wants to Revamp Assistance Program It Calls 'Duplicative,' 'Confusing'
The department's Comprehensive Centers have already been through a year of shakeups.
3 min read
A first grade classroom at a school in Colorado Springs, on Feb. 12, 2026.
A 1st grade classroom at a school in Colorado Springs, Colo., on Feb. 12, 2026. The U.S. Department of Education released a proposal to rework a decades-old program charged with helping states and school districts problem-solve and deploy new initiatives, calling the current structure “duplicative” and “confusing.”
Kevin Mohatt for Education Week
Federal Will the Ed. Dept. Act on Recommendations to Overhaul Its Research Arm?
An adviser's report called for more coherence and sped-up research awards at the Institute of Education Sciences.
6 min read
The U.S. Department of Education building is pictured on Oct. 24, 2025, in Washington, D.C.
The U.S. Department of Education building in Washington is pictured on Oct. 24, 2025. A new report from a department adviser calls for major overhauls to the agency's research arm to facilitate timely research and easier-to-use guides for educators and state leaders.
Maansi Srivastava for Education Week
Federal Trump Talks Up AI in State of the Union, But Not Much Else About Education
The president didn't mention two of his cornerstone education policies from the past year.
4 min read
President Donald Trump enters to deliver the State of the Union address to a joint session of Congress in the House chamber at the U.S. Capitol in Washington, Tuesday, Feb. 24, 2026.
President Donald Trump enters to deliver the State of the Union address to a joint session of Congress in the House chamber at the U.S. Capitol in Washington, Tuesday, Feb. 24, 2026. The president devoted little time in the speech to discussing his education policies.
Kenny Holston/The New York Times via AP, Pool