Law & Courts

Houston Settles Over E-Rate Corruption Allegations

By The Associated Press — March 15, 2010 2 min read
  • Save to favorites
  • Print

The largest public school system in Texas has agreed to pay $850,000 as part of a civil settlement relating to claims that employees accepted meals and other gifts in connection with the federal E-rate program.

The agreement settles allegations by the U.S. Department of Justice that the Houston school district provided false information to the Federal Communications Commission’s education-rate program, which provides funding for schools and libraries to connect to and utilize the Internet.

The Justice Department said last week that the Houston district, which has more than 200,000 students attending 295 schools, also engaged in noncompetitive bidding practices for E-rate contracts.

Greg Meyers, the president of the Houston school board, said settling the allegations was a sound business decision that will help level the digital playing field for students by restoring school technology funding awards.

Under the E-rate program, created by Congress in the Telecommunications Act of 1996 and funded by fees collected from telephone users, schools apply for aid to pay for hardware and monthly service fees for Internet connections.

Protecting ‘Integrity’

The Justice Department contended that the Houston Independent School District provided false information to the E-rate program and otherwise violated the program’s requirements by engaging in noncompetitive bidding practices for E-rate contracts. It further alleged that district officials received gratuities from technology vendors, including trips, meals, and loans.

Digital Directions

Education Week recently began a special technology feature that will appear in every issue of the newspaper, covering news, trends, and ideas about digital learning and administrative uses of tech tools in schools.

Visit Education Week Digital Directions Web site for regular updates on news, trends, and ideas in education technology.

“The E-rate program provides critical support for Internet access and wiring to the most underserved schools in the country,” Tony West, the assistant attorney general for the civil division of the Justice Department, said in a statement. “We are committed to protecting the integrity of this important program that benefits our neediest children.”

Mr. West noted that the resolution announced last week resulted from an ongoing federal investigation of possible fraud and anti-competitive conduct in the E-rate program in Texas. The investigation is a collaborative effort involving the Justice Department’s civil division, the U.S. attorney’s office for the Northern District of Texas, and the FCC’s office of the inspector general.

The settlement with the Houston district is part of the federal government’s efforts to combat fraud through the use of enforcement tools such as the False Claims Act. Since January 2009, the Justice Department’s total recoveries in False Claims Act cases have topped $3 billion.

Related Tags:

A version of this article appeared in the March 17, 2010 edition of Education Week as E-Rate Claims Lead to Fine for Houston

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
Student Well-Being Webinar
Creating Resilient Schools with a Trauma-Responsive MTSS
Join us to learn how school leaders are building a trauma-responsive MTSS to support students & improve school outcomes.
School & District Management Live Online Discussion A Seat at the Table: We Can’t Engage Students If They Aren’t Here: Strategies to Address the Absenteeism Conundrum
Absenteeism rates are growing fast. Join Peter DeWitt and experts to learn how to re-engage students & families.

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

Law & Courts Supreme Court Appears Unlikely to Strike Down School E-Rate Program
The Supreme Court seems unlikely to strike down the E-rate program, though some justices questioned its funding structure and oversight.
5 min read
The Supreme Court in Washington, June 30, 2024.
The U.S. Supreme Court considers a major challenge to the E-rate program for school internet connections on March 26.
Susan Walsh/AP
Law & Courts Trump Asks Supreme Court for OK to Move Ahead With Deep Teacher-Training Cuts
The Trump administration on Wednesday asked the Supreme Court to allow it to cut hundreds of millions of dollars for teacher training.
2 min read
President Donald Trump, left, holds up a signed executive order as young people hold up copies of the executive order they signed at an education event in the East Room of the White House in Washington, Thursday, March 20, 2025.
President Donald Trump, left, holds up a signed executive order as young people hold up copies of the executive order they signed at an education event in the East Room of the White House in Washington, Thursday, March 20, 2025. The Trump administration asked the Supreme Court to permit the cut of funding for teacher training programs.
Ben Curtis/AP
Law & Courts See All the Lawsuits Filed Over Trump's Education Policies
Here’s a look at the moves that have drawn litigation, and where the complaints stand.
3 min read
Republican presidential nominee former President Donald Trump speaks during a news conference held at Trump Tower, Friday, Sept., 6, 2024 in New York.
Donald Trump speaks during a news conference held at Trump Tower on Sept. 6, 2024 in New York. His education actions since returning to the White House in January 2025 have drawn numerous lawsuits alleging he's overstepping his authority.
Stefan Jeremiah/AP
Law & Courts Opinion Can States Bar Religious Charter Schools? The Supreme Court Will Soon Decide
Recent U.S. Supreme Court decisions suggest that bans on faith-based charter schools may violate the Free Exercise Clause.
13 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