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Libraries, Schools to Begin Getting E-rate Subsidies at Last

Vice-President Al Gore announced November 23 that over the next two months up to 7,000 libraries and 40,000 schools across the country will receive $1.275 billion in federal subsidies for Internet connections.

Long-awaited letters committing the funds have gone out to the first 3,000 libraries and schools, earmarking $73 million in discounts through next June; some 30,000 have applied for the subsidies through the Federal Communications Commission's universal service fund. The Schools and Libraries Corporation, which manages the fund, says only about 3% of the first 3,000 applicants were turned down, and it will respond to the rest of the applications in December and January.

The e-rate was created by the Telecommunications Act of 1996. Since its creation, however, the subsidies have endured a 50% cut and fierce Congressional criticism over the way the FCC was managing the program.

Posted November 30, 1998.

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