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

English Learners K-12 Essentials Forum Rethinking Instruction for English Learners
Join this free event to explore teacher preparedness, family communication, and strategies to ensure equity and opportunity for students.
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
From Passive to Active Reading: Student Engagement in the Age of AI
What the research tells us about active reading and student engagement—and what it means for teaching in an AI-enabled world.
Content provided by Pearson
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
Professional Development Webinar
Micro-Learning, Macro Results: Reimagining Professional Learning
Rethink professional learning with 3 strategies that personalize professional learning, validate expertise, and support educator retention.
Content provided by Mira Education & Modiv EDU

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 Opinion Public Educators Are Skeptical of the New Federal Tax Credits. They Needn't Be
Unlike vouchers, the new scholarships can benefit students choosing to attend public schools.
Deborah A. Gist & Thomas Arnett
•
5 min read
Giant tax funnel drops money into a public school building. Federal tax scholarships, public schools, private schools, charter schools
Vanessa Solis/Education Week + Getty
Federal Ed. Dept. Officially Kills Biden Rule That Added LGBTQ+ Protections to Title IX
The Education Department reinstates 2020 Title IX regulations effectively in place since early 2025.
4 min read
NEW YORK, NEW YORK - JUNE 13: Local elementary schools participate in the annual Brooklyn Gay Pride Parade, celebrating its 30th year, June 13, 2026 in the Park Slope neighborhood of the borough of Brooklyn, New York City.
Local elementary schools participate in the annual Brooklyn Gay Pride Parade, celebrating its 30th year on June 13, 2026, in the Park Slope neighborhood of the borough of Brooklyn, New York City. The Trump administration has officially rescinded a Biden-era regulation that extended Title IX's prohibition on sex discrimination to cover discrimination based on sexual orientation and gender identity.
Andrew Lichtenstein/Corbis via Getty Images
Federal OpenAI's Models Probed Websites of Department of Education, Other Agencies
The department's office for civil rights was probed in an attempted hack, according to a report.
3 min read
FILE - The OpenAI logo is displayed on a cell phone in front of an image generated by ChatGPT's Dall-E text-to-image model, Dec. 8, 2023, in Boston. (AP Photo/Michael Dwyer, File)
Federal Trump Administration Moves to Limit Fixes for Systemic Racism in Schools
The Trump administration has limited remedies schools can use to address systemic racial injustice.
7 min read
Jovonia Lewis poses for a portrait outside of the Durham Board of Education building on Sept. 21, 2026, in Durham, N.C.
Jovonia Lewis poses for a portrait outside the Durham Board of Education building on Sept. 21, 2026, in Durham, N.C. In 2018, the U.S. Department of Education reached an agreement with the Durham district after finding it disproportionately suspended Black students. The second Trump administration has limited the remedies schools can use to address systemic racial injustice.
Matt Ramey/AP