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
Recruitment & Retention Webinar
Hiring, Retention, and Fill Rates: A Data-Driven Sub Strategy
Explore what keeps substitutes coming back and hear how one district rebuilt its substitute hiring process and improved its fill rate.
Content provided by Frontline Education
Early Childhood K-12 Essentials Forum Early Childhood Education: Building Essential Skills for Success
Join this free virtual event to examine the biggest challenges in supporting young children, from preschool through elementary school. 
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
Student Absenteeism Webinar
Attendance Isn't an Attendance Problem
Boost attendance by strengthening relationships, belonging, and support with practical strategies from Doug Fisher & Nancy Frey.
Content provided by Corwin

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 Trump Admin. Touts Ed. Dept.'s Help for States as It Tries to Shut It Down
The Trump administration pushes the Education Department's closure, while touting its help for states.
6 min read
Letters on the Department of Education building are missing after removal of America 250 banners, which included those of Booker T. Washington, Catharine Beecher and Charlie Kirk, on March 18, 2026, in Washington.
Letters on the Department of Education building in Washington are missing in this March 18, 2026 photo. The Trump administration continues to push for the agency's closure while also touting its help for states.
Allison Robbert/AP
Federal Opinion What’s Behind the Trump Administration's Push to Reform Head Start?
Assistant Secretary Alex Adams explains the Trump administration’s approach to the early-ed program.
7 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
Federal Ed. Dept. Would Have More Power to Cut Off Grants Under New Rules
The agency last year ended in-progress grants worth more than $2 billion, with courts often objecting.
5 min read
Jeanette Vyhanek, a counselor at Wellstone Elementary, teaches a class of kindergarten students at the St. Paul school on Oct. 31, 2025 in Minnesota.
Jeanette Vyhanek, a counselor at Wellstone Elementary in St. Paul, Minn., teaches a class of kindergarten students on Oct. 31, 2025. Federal grants to expand the ranks of school counselors and other school mental health services were among hundreds terminated by the Trump administration in 2025. New rules from the U.S. Department of Education would give the federal agency greater latitude to end in-progress grants.
Alex Kormann/The Minnesota Star Tribune via TNS
Federal Q&A Education Data Collection Has Cratered Under Trump. Can It Be Rebuilt?
Ed. Dept.'s data-gathering agency is too unstable to adapt to changing needs, a new report claims.
6 min read
A student raises her hand to ask a question in her third grade classroom at Highland Elementary School in Columbus, Kan., on Oct. 17, 2022. The arm of the government that oversees education data which tracks educational outcomes for students, faces major challenges ahead due to financial cuts.
A student raises her hand to ask a question in her 3rd grade classroom at Highland Elementary School in Columbus, Kan., on Oct. 17, 2022. Federal education data-gathering, like the Condition of Education report, includes baseline information on students and schools. But cuts to the Education Department's statistics wings and mounting criticism of how it operates raise questions about how it can best fulfill its mission.
Charlie Riedel/AP