Senate Report Reveals $200M+ Spent Annually on Consultants for School Internet Subsidy Program
Senate report reveals over $200 million spent yearly on consultants for school internet subsidy program. Experts call for increased oversight.
POLICY WIRE — Washington, United States — A new Senate committee report has revealed that more than $200 million is spent annually on consultants assisting schools and libraries in securing federal funding through the E-Rate internet subsidy program.
The findings, released on Tuesday, highlight growing concerns about the complexity of the $3 billion annual initiative and the increasing reliance on third-party advisors to navigate its requirements. The report estimates that these intermediaries collect between $200 million and $400 million each year, with their involvement linked to approximately 82% of all funding commitments by value.
Lawmakers have called for greater transparency and scrutiny of the program, citing potential for waste, fraud, and abuse. The report also notes that while various committees oversee budget development, the final approval of funds rests with the USAC Board, which requires a two-thirds majority vote to make any changes.
Reporting by Policy-Wire (PW)
