Ed-Tech Policy

E-Rate Program Told to Direct Money to Schools Now

By Andrew Trotter — October 11, 2004 1 min read
  • Save to favorites
  • Print

Trying to alleviate a severe cash crunch in the federal E-rate program, the Federal Communication Commission directed the program’s manager last week to convert $210 million in investments to ready cash that could be provided to schools and libraries.

But an official at the Universal Service Administrative Co., the nonprofit company that runs the E-rate program, was unsure whether any schools and libraries would receive funding commitments before November—usac’s most optimistic estimate before the FCC’s announcement last week. (“Cash Freeze for E-Rate Hits Schools,” Oct. 6, 2004.)

“It’s almost fluid every day—we are taking a look at available cash on hand, funding commitments that are obligated right now, and how much money we get from [telecommunications] carriers,” Mel Blackwell, USAC’s vice president for external communications, said Oct. 7.

Capitol Hill Heat

In August, USAC halted funding of nearly $3.4 billion in requests for the “education rate” discounts on telecommunications services, which are awarded each year to support eligible projects and services requested by schools and libraries. Most of those projects go nowhere until the E-rate funding commitments are mailed out.

Usac froze funding for projects because officials feared that they did not have enough money to meet their obligations under accounting rules for federal agencies that went into effect this month, according to Mr. Blackwell.

Over the past few weeks, however, a chorus of protest has risen from state and school officials. And a hearing last week of the U.S. Senate Committee on Commerce, Science, and Transportation that had been scheduled to focus on waste, fraud, and abuse in the E-rate program instead highlighted the fiscal jam.

In a statement released before the hearing, Sen. Olympia J. Snowe, R-Maine, charg ed that the accounting change “could imperil a program that helps countless communities around the country. As a result, no school or library in the country has received any funding, nor even a commitment for funding, since Aug. 3.”

Related Tags:

Events

Artificial Intelligence K-12 Essentials Forum How AI Use Is Expanding in K-12 Schools
Join this free virtual event to explore how AI technology is—and is not—improving K-12 teaching and learning.
Federal Webinar The Trump Budget and Schools: Subscriber Exclusive Quick Hit
EdWeek subscribers, join this 30-minute webinar to find out what the latest federal policy changes mean for K-12 education.
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
Curriculum Webinar
End Student Boredom: K-12 Publisher's Guide to 70% Engagement Boost
Calling all K-12 Publishers! Student engagement flatlining? Learn how to boost it by up to 70%.
Content provided by KITABOO

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

Ed-Tech Policy Download Four Ways to Supercharge Your School's Cellphone Policy (Downloadable)
The first step is creating a cellphone policy. But it takes these four ingredients to make the policy work.
2 min read
Cell phones sit in a cell phone locker at Boys’ Latin School of Maryland in Baltimore on Oct. 24, 2024.
Cell phones sit in a cell phone locker at Boys’ Latin School of Maryland in Baltimore on Oct. 24, 2024.
Jaclyn Borowski/Education Week
Ed-Tech Policy Opinion If You're Going to Ban Cellphones, Do It Right
An educator offers school and district leaders a cooperative, restorative approach to restricting cellphone use in schools.
Nicholas Bradford
5 min read
School cellphone ban policies to restrict cell phones in schools to reduce distractions and help avoid social media addiction resulting in academic problems and mental health issues in a classrooom.
Wildpixel/iStock
Ed-Tech Policy More States Are Moving to Ban Cellphones at School. Should They?
While cellphone bans are popular with many educators, some researchers say there's not much evidence yet that these policies work.
A student uses their cell phone after unlocking the pouch that secures it from use during the school day at Bayside Academy on Aug. 16, 2024, in San Mateo, Calif.
A student uses a cellphone after unlocking the pouch that secures it from use during the school day at Bayside Academy in San Mateo, Calif., on Aug. 16, 2024.
Lea Suzuki/San Francisco Chronicle via AP
Ed-Tech Policy What Schools Look Like Without the Cellphone Distraction
Student behavior has improved and disciplinary referrals have gone down, administrators say.
7 min read
School kids placing putting phones away during class
Dobrila Vignjevic/E+