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

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
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
The Principal's Role in Collective Efficacy and Student Outcomes
Learn practical strategies that help principals translate their confidence into stronger collective teacher efficacy and student outcomes.
Content provided by Otus

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 Education Department Tells Schools Race Can’t Factor Into Student Discipline
A letter to educators follows up on last month's rescission of longstanding discrimination rules.
5 min read
Assistant Secretary for Civil Rights for the Department of Education nominee Kimberly Richey testifies before the Health, Education, Labor and Pensions committee about her nomination in Washington, D.C., on June 5, 2025.
Assistant Secretary for Civil Rights Kimberley Richey testifies before the Senate's Health, Education, Labor and Pensions committee at her nomination hearing in Washington on June 5, 2025. A new letter to educators from Richey instructs schools not to consider race at all in school discipline policies, following the Trump administration's rescission of longtime anti-discrimination rules.
Jason Andrew for Education Week
Federal Q&A What Head Start's English-Only Rule Could Mean for English Learners
Research shows it's not necessary to lose a home language to learn English.
3 min read
Long Beach, CA - March 20 : Teacher Monica Alvarado, left, leads activities with staff in the infant class at Educare Los Angeles at Long Beach , a very high-quality child care center in Long Beach on Wednesday, March 20, 2024 in Long Beach, CA.
Teacher Monica Alvarado, left, leads activities with staff in the infant class at Educare Los Angeles at Long Beach, a very high-quality child care center in Long Beach on Wednesday, March 20, 2024 in Long Beach, Calif. Head Start programs for early childhood education will no longer promote bilingualism under a proposed rule change.
Brian van der Brug / Los Angeles Times via TNS
Federal After Months of Standstill, Ed. Dept. Announces New Federal Research Funding
The agency outlined its fiscal 2027 grantmaking amid questions about its sluggish spending.
7 min read
The Department of Education headquarters in Washington, D.C. on Friday, July 17, 2026.
The Department of Education headquarters in Washington on Friday, July 17, 2026. Federal funding for education research may be starting to flow, even as the overall spending picture remains unclear.
Eric Lee for Education Week
Federal Trump Signs Executive Order Calling for Spacing Out Childhood Vaccines
The order calls for splitting the MMR vaccine into three separate shots, a sequence not currently available in the U.S.
3 min read
President Donald Trump speaks as Health and Human Services Secretary Robert F. Kennedy Jr., right, and Jayme Franklin listen during a meeting to sign an executive order about vaccines, Monday, Aug. 10, 2026, in the Oval Office of the White House in Washington.
President Donald Trump speaks as Health and Human Services Secretary Robert F. Kennedy Jr., right, and Jayme Franklin listen during a meeting in the Oval Office of the White House on Aug. 10, 2026. Trump signed an executive order to change childhood vaccination schedules.
Jacquelyn Martin/ AP Photo