WASHINGTON-The two champions of E-rate, Sens. Olympia Snowe (R-Maine) and Jay Rockefeller (D-W.V.), have introduced legislation to permanently exempt the universal-service fund from the Anti-Deficiency Act. E-rate is the part of the USF that pays to connect schools and libraries to the Internet.
“The legislation that we are introducing would prevent phone bills from rising and maintain essential technology funding for schools and libraries. The concept of universal service has been with us nearly as long as the telephone itself, and the bill marks one key step in ensuring that this vital policy remains intact in the 21st century,” said Snowe.
Just before Congress adjourned last year, it temporarily exempted the universal-service fund from the ADA.
The telecom industry became concerned when the Universal Service Administrative Co. halted E-rate subsidies last year because of an accounting change.
USAC is a quasi-governmental organization created by the Federal Communications Commission to administer universal-service subsidies. As part of its efforts to tighten control on the much-derided E-rate program, the FCC ordered USAC to begin using Generally Accepted Accounting Principles, which meant it had to comply with the ADA. Because it couldn’t comply with the new accounting standards, USAC suspended E-rate payments in August.
Congress said USF subsidies were not subject to ADA for one year.
