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 NEWS  News  media  Information  202  /  418-  0500  TTY  202  /  418-  2555  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 FOR  IMMEDIATE  RELEASE:  NEWS  MEDIA  CONTACT:  October  6,  2004  Mark  Wigfield,  202-  418-  0253 
 Email:  mark.  wigfield@  fcc.  gov 
 FCC  TAKES  STEPS  TO  RESOLVE  E-  RATE  DELAYS 
 Washington,  D.  C.  –  The  Federal  Communications  Commission  Wednesday  announced  several  steps  it  is  taking  to  alleviate  a  temporary  cash  flow  problem  in  a 
 program  that  provides  vital  subsidies  for  telecommunications  services  and  the  Internet  in  the  nation’s  schools  and  libraries. 


 While  the  Schools  and  Libraries  program  has  adequate  funds  to  pay  all  its  bills,  stringent  government  accounting  standards  ordered  by  the  FCC  to  protect  the  integrity  of 
 the  $2.25  billion  program  have  temporarily  delayed  approval  of  new  subsidies.  The  FCC  is  working  with  the  administration,  Congress  and  the  schools  to  get  funds  flowing  as  soon  as 
 possible  while  still  protecting  the  fund. 
 Over  $2  billion  in  support  that  has  already  been  approved  is  being  paid  without  delay  and  will  continue  to  be. 


 On  Monday,  the  FCC  directed  the  corporation  administering  the  program,  the  Universal  Service  Administrative  Company,  or  USAC,  to  liquidate  $210  million  in 
 investments  that  were  made  using  cash  balances.  This  is  designed  to  expedite  approval  of  some  of  the  delayed  commitments  to  the  schools. 


 The  FCC  is  also  exploring  a  variety  of  options  with  USAC  to  ease  the  temporary  cash  flow  problems  as  the  new  accounting  standards  are  being  implemented.  FCC 
 Chairman  Michael  Powell  is  pushing  to  make  these  changes  as  quickly  as  possible  while  at  the  same  time  maintaining  rigorous  accounting  controls. 


 He  stressed  the  commission’s  deep  commitment  to  this  vital  program  in  an  October  5  letter  to  Senators  Olympia  Snowe  and  John  D.  Rockefeller  that  details  why  the 
 agency  moved  to  enact  these  crucial  accounting  measures  and  actions  the  FCC  is  taking  to  ease  the  transition. 


 -FCC- 
 News  about  the  Federal  Communications  Commission  can  also  be  found  on  the  Commission’s  web  site  www.  fcc.  gov. 
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