Barton Opposes Renewal of E-Rate Exemption from ADA Rules
House Commerce Committee Chmn. Barton (R-Tex.) will oppose efforts to exempt the E-rate program from Anti- Deficiency Act rules that require funding to be in hand before money can be spent, according to a Commerce Committee staffer. Barton and Senate Commerce Committee Chmn. Stevens (R-Alaska) brokered a deal last year that gave the program a one-year pass, but Barton is “inclined to let the ADA exemption expire,” the aide said.
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If efforts arose to attach an exemption to appropriations legislation, “the chairman would strenuously oppose it,” the staffer said. The Commerce-State-Justice appropriations bill was the vehicle for the exemption last year. The extension was considered a temporary step while the committees worked on legislation overhauling the program. The FCC had no comment.
Barton’s position could be the beginning of a difficult struggle over USF with Stevens. Barton’s bill doesn’t deal with the program and none of his previous drafts focused on USF. He has made clear in several public statements that he thinks the program needs revamping, and he oversaw investigations into the program that documented evidence of waste and mismanagement. Stevens wants to revamp the program, and his bill would use the funding to provide broadband to rural areas.
“Philosophically, he’s [Barton] not a big fan of USF,” said Brian O'Hara, NTCA govt. affairs representative. “This is not a shock,” he said, referring to Barton’s intention to abandon support of the ADA exemption: “We are disappointed. We want to get this taken care of.” NTCA, like many other groups, had hoped that the larger telecom bills would tackle USF reform.
The Stevens telecom bill contains a permanent exemption for the E-rate program, so there could be room for negotiation if the 2 bills go to conference, O'Hara said: “Stevens wasn’t pleased that we were going from extension to extension but he understands the problem with the program.”.
The final decision on application of ADA rules to the USF program lies with the Office of Management & Budget, which hasn’t yet said whether they would apply to the high- cost fund. If they did, it could cause major problems for some rural companies which rely heavily on USF money and could face shortfalls.