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
Assessment Webinar
Reflections on Evidence-Based Grading Practices: What We Learned for Next Year
Get real insights on evidence-based grading from K-12 leaders.
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
Promoting Integrity and AI Readiness in High Schools
Learn how to update school academic integrity guidelines and prepare students for the age of AI.
Content provided by Turnitin
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
Reading & Literacy Webinar
What Kids Are Reading in 2025: Closing Skill Gaps this Year
Join us to explore insights from new research on K–12 student reading—including the major impact of just 15 minutes of daily reading time.
Content provided by Renaissance

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 Dramatic Cuts to Ed. Data Programs Will Have Far-Reaching Consequences, Researchers Warn
Education research organizations asked Congress to intervene in cuts to ed. data, research staff.
6 min read
Image of performance data analysis.
NicoElNino/iStock/Getty
Federal See Which Schools Trump's Education Department Is Investigating and Why
The agency has opened more than 80 investigations. Check out our map and table to review them.
2 min read
President Donald Trump speaks before signing an executive order barring transgender female athletes from competing in women's or girls' sporting events, in the East Room of the White House, Wednesday, Feb. 5, 2025, in Washington.
President Donald Trump speaks at the White House on Feb. 5, 2025, before signing an executive order barring transgender females from competing in women's or girls' sports. Transgender athlete policies have been a common subject of investigations into schools, colleges, state education departments, and athletic associations by the U.S. Department of Education since Trump took office.
Alex Brandon/AP
Federal Opinion Federal Ed. Research Has Been Slashed. Here’s What We All Lose
The long-term costs to our students far outstrip any short-term taxpayer savings from the Trump cuts.
Stephen H. Davis
4 min read
Person sitting alone on hill looking at the horizon feeling sad, resting head in hand. Mourning the loss of education research data.
Vanessa Solis/Education Week + iStock/Getty Images
Federal Trump Says RFK Jr. Will Oversee Special Education, Child Nutrition
Advocates are wary as the president's comments don't specify when or how the transition will happen.
Robert F. Kennedy, Jr., speaks before Republican presidential nominee former President Donald Trump at a campaign event, Sept. 27, 2024 in Walker, Mich.
Robert F. Kennedy, Jr., speaks a campaign event for then candidate Donald Trump on Sept. 27, 2024 in Walker, Mich. President Trump has announced that the U.S. Department of Health and Human Services, now led by Kennedy, would handle “special needs and all of the nutrition programs and everything else.”
Carlos Osorio/AP