“U.S. Rep. Tom Trancredo (R.-Colo.) has introduced legislation (H.R. 1252) to terminate the Federal Communications Commission’s (FCC) E-Rate program, the $2.25 billion fund designed to help schools and libraries connect to the Internet and financed by fees added to consumers’ telephone bills.”
“Following the passage of the 1996 Telecommunications Act, telecoms were faced with the burden of finding a way to cover the costs of providing discounted services to schools and libraries. The telecoms convinced Congress was to pass the cost off to consumers by levying a surcharge in the form of a universal service fee on telephone bills.” (from Internet.com)
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