Internet Grants to Schools Halted as the F.C.C. Tightens the Rules By STEPHEN LABATON
WASHINGTON, Oct. 3 - Public libraries and schools around the nation have suddenly stopped receiving any new grants from a federal program that is wrestling with new rules on how it spends $2.25 billion each year to provide high-speed Internet and telephone service. The moratorium at what is known as the E-Rate program began two months ago, with no notice, and may last for months, causing significant hardships at schools and libraries, say state officials and executives at the company that runs the program. The suspension came after the Federal Communications Commission, in consultation with the White House, imposed tighter spending rules that commission officials say will make it easier to detect fraud and waste in the program. As much as $1 billion in grants the states say they expected to receive by the end of the year may be affected, one official estimate says. That has led state administrators to either take money from other educational programs or postpone paying their phone and Internet companies. "We are fearful that they could shut down our service," said Curt Wolfe, chief information officer for North Dakota. The federal program contributes more than 60 percent of the money, or about $1.7 million a year, that pays for Internet services and to link video services for the state's 100,000 students, he said. < snip > http://www.nytimes.com/2004/10/04/business/media/04fcc.html?hp=&oref=login&p agewanted=print&position= -- You are a subscribed member of the infowarrior list. Visit www.infowarrior.org for list information or to unsubscribe. This message may be redistributed freely in its entirety. Any and all copyrights appearing in list messages are maintained by their respective owners.
