Hill Commerce Republicans Press FCC for EBB Fraud Info

Top Republicans on the House and Senate Commerce committees pressed the FCC Monday for information on the agency’s response to the Office of Inspector General’s November report that some emergency broadband benefit providers were falsely claiming a child in a household attended a qualifying low-income school (see 2111220058). Commissioner Brendan Carr said he was “kept in the dark” about the OIG’s findings until the report’s public release (see 2111230067). OIG’s recent findings and past federal watchdog reports about “fraud and abuse” in other FCC programs “raise serious questions about” the commission’s “ability to oversee and manage its programs,” Senate Commerce ranking member Roger Wicker of Mississippi, House Commerce ranking member Cathy McMorris Rodgers of Washington and the GOP ranking members of the Communications subcommittees wrote FCC Chairwoman Jessica Rosenworcel. They noted a 2020 GAO report that said the FCC’s oversight of its E-rate program was “insufficient … to identify potential fraud risks” (see 2009160081). “The upcoming transition of the EBB” to the $14.2 billion affordable connectivity program enacted via the Infrastructure Investment and Jobs Act “provides further reason for concern,” the GOP lawmakers said. “Unlike other FCC subsidy programs, the ACP will be funded through appropriations, rather than Universal Service Fund contributions. We are concerned that the FCC may proceed with rules for a permanent ACP that do not adequately protect American taxpayers or best serve eligible households.” The lawmakers want Rosenworcel to explain by Jan. 7 when her office became “aware of fraud” in EBB, if the FCC has identified the providers that committed fraud and what actions the agency will take to “confirm the eligibility of current EBB recipients.” They also want to know whether Rosenworcel will seek comment on draft rules for ACP “from other commissioners and the public” and if the FCC will take steps to ensure “future enrollees” are eligible for the revised program. The FCC didn’t comment.