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FCC Creating 'USF Strike Force' to Combat Program Fraud

I've been writing about the dysfunction of the FCC's E-Rate program for a very long time. The system, which you pay into via Universal Service Fund (USF) fees, is designed to deliver broadband and technology services to the nation's schools and libraries. Instead, like the larger USF, it's more like a slush fund, where money paid in frequently isn't tracked by the government, and spending accountability is minimal to non-existent. As you might expect, this has traditionally resulted in oodles of fraud by both carriers and schools.

At various times, between 26% and 40% of USF funds have been poured into E-Rate, and the program has doled out more than $25 billion since its inception in 1998. The program has great potential and occasionally great successes, yet it js repeatedly marred by the fact the FCC historically has not done a good job tracking spending. For years now, the General Accounting Office (GAO) has issued an endless flood of reports on how the FCC should actually pay attention, and for just as many years the FCC has insisted they'd get right on that.

Fast forward to 2014 and the FCC now says that they'll be creating a "USF strike force" tasked specifically with combating fraud in the program. According to the FCC announcement, this new organization will work to more quickly identify fraud and work with law enforcement to ensure that program abusers are prosecuted.

"The Commission is committed to aggressively rooting out waste, fraud, and abuse," states Chairman Wheeler. "The USF Strike Force expands the Commission’s activities, including those of the FCC Office of Inspector General, to protect the integrity of the Universal Service Fund and ensure that the American people’s money is wisely spent."

Most recommended from 11 comments



karpodiem
Hail to The Victors
Premium Member
join:2008-05-20
Troy, MI

2 recommendations

karpodiem

Premium Member

No Fiber, no money

USF should be limited to terrestrial deployments, and fiber only.