As expected, the Federal Communications Commission decided June 12 to scale back rather than eliminate the universal-service telecommunications discount program money for schools and libraries.
The commissioners voted 3–2 to provide $650 million in subsidies in the second half of this year, bringing the total for 1998 to $1.275 billion—43% less than the $2.25 billion originally sought. The agency has also acted to ensure that the poorest schools and libraries would receive funding first, and decided to pay for the initial round of 30,000 requests for discounts over a period of 18 months rather than the one year originally planned.
The commission also voted to bar any employee of the program from being paid more than $151,000 annually, a response to criticism of administrator Ira Fishman's $200,000 salary.
The program has been under attack by members of Congress and consumer groups who fear it will raise phone bills.
Posted June 8, 1998.