Tales of Fraud, Abuse in School E-Rate Program

Abstract

A new report from the Government Accountability Office (GAO) puts forth renewed charges of fraud and mismanagement in the federal government's E-rate Program, designed to subsidize technology to connect U.S.schools and libraries to the Internet. The report was prepared for the House Energy and Commerce Committee, which is conducting its own investigation. Rep. Joe Barton (R-Tex.), chairman of the committee, blamed the Federal Communications Commission, unscrupulous vendors, and certain schools for the problems in the program, which he said was a "disgrace." Although investigations have led to a handful of penalties for abuse in the program, the report advises increased efforts to clean it up. Among the report's recommendations are calls to "comprehensively determine which federal accountability requirements apply to E-rate; establish meaningful E-rate performance goals and measures; and take steps to reduce its backlog of appeals."