E-rate Funds To Flow After Congressional Fix

By LJ Staff

On December 8, just before the 108th Congress adjourned, the Senate passed H.R. 5419, which offers a temporary fix of the accounting problem that stalled E-rate discounts for schools and libraries. On August 3, the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC) suspended issuing funding commitment letters, citing new rules that prevented them from making commitments without having money already paid in by telecomm carriers. Lobbying by library and school advocates helped turn the tide. The bill gives libraries and schools a one-year reprieve from the "Anti-deficiency Act," until the end of 2005, and the issue is expected to be discussed in Congress next year.

Since August, E-rate funding had been virtually frozen, thus making it difficult for libraries to plan for spending in 2005. Said ALA President Carol Brey-Casiano, "We are so pleased that Congress has taken this important step toward freeing up E-rate funds for libraries. This is the latest success in a long battle to assure that "universal service" means affordable access for all people in all communities."

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