Bill Introduced to Detach E-Rate
from Phone Bills, FCC
Sen. Conrad Burns (R-Mont.) and Rep. Billy Tauzin (R-La.) reintroduced legislation May 11 that would transfer funding of the e-rate program to the federal excise tax on telephone service. The funds are currently collected from phone companies, who pass it along to customers on phone bills.
The sponsors stressed that they support federal assistance to schools and libraries for Internet connections. However, they voiced strong objections to the program being paid for by phone users, and they want to remove its administration from the Federal Communications Commission: The House bill (H.R.1746) would hand over the program to the Department of Education, while the National Telecommunications and Information Administration would administer it under the Senate bill (S.1004).
“This bill ensures the continued viability of the Schools and Libraries program by tying it to a specific, predictable funding mechanism,” said Burns. “The bill also makes sure that universal service is saved for its original objective—providing affordable telephone service for folks in rural areas.”
Posted May 17, 1999.
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