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E-Rate Program Back on Track

The Senate passed a package of telecommunications laws late December 8 that exempts the Universal Service Administrative Company, which oversees e-rate funding discounts to libraries and schools, from having to comply with more restrictive accounting rules enforced by the FCC in response to reported problems of fraud and abuse. The bill complements similar legislation approved by the House in November and will be sent to President Bush for his signature.

USAC spokesman Mel Blackwell said in the December 8 Washington Post that a backlog of some 4,000 applications for e-rate funding, amounting to more than $400 million in requests, have been delayed since the FCC suspended the program in August in order to implement the stricter rules.

Posted December 10, 2004.

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