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The omnibus appropriations bill (HR-2673), expected to clear the ...

The omnibus appropriations bill (HR-2673), expected to clear the House today (Mon.) (see separate story, this issue), would require the FCC to fund any audit of the Universal Service Fund (USF) E-rate program. The conference report on the bill…

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adopts language from the Senate Commerce Justice State (CJS) appropriations bill (S-1585) conference report that prevents appropriations to the FCC be used to audit E-rate. Instead, Congressional appropriators said the money should be taken from the USF. Currently, the FCC Inspector General (IG) is prohibited from using USF money to fund audits through his office. FCC IG Walker Feaster said the result of the bill would likely require the FCC to hire independent auditors to evaluate the E-rate program. The report language showed that the FCC had asked for $3 million to review the E-rate program. The program, which funds telephony and Internet access for schools and libraries, has been under fire from Congressional members. House Commerce Committee Chmn. Tauzin (R-La.) has raised concern about fraud in the $2.2 billion E-rate program. Last week, Tauzin asked the General Accounting Office to examine the policies of the E-rate program (CD Dec 3 p5). That review is in addition to the investigation being conducted by the House Commerce Oversight Subcommittee.