Gary Deane spotted This Story that says Congressional investigators believe they can prove that the E-rate program that subsidizes telephone and internet service for schools and public libraries is riddled with waste, abuse, incompetence and in a few instances, fraud.
Under the Telecommunications Act of 1996, the E-rate is funded by $2.25 billion a year in fees paid by long-distance providers, most of whom include the E-rate fee in the “universal service” charge on their customers’ bills.
“It’s clear rate-payers have been ripped off to the tune of tens of millions of dollars,” said Ken Johnson, spokesman for the House Energy and Commerce Committee.
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