STEVE DAINES COMMITTEES MONTANA APPROPRIATIONS ENERGY AND NATURAL RESOURCES 320 H ART SENATE OFFICE B UILDING WASH INGTON , DC 20510 FINANCE (202) 224-2651 tlnitrd ~tatrs ~rnatr INDIAN AF FAIRS July 10, 2019 447 Chairman Ajit Pai Federal Communications Commission 445 12th Street SW Washington, D.C. 20554 Dear Chairman Pai, Expanding broadband connectivity and access is a priority that I know we both share. This can be done with a mix of reducing burdensome regulation and targeted federal investment. I want to first thank you for your efforts to reduce regulation, which has helped contribute to a surge in broadband investment, moving Montana from 31 % unserved in 2016 to 14 % unserved in 2019. However, I am troubled by reports of duplicative federal investment from the Universal Service Program for Schools and Libraries (E-rate) that has led to wasteful overbuilding of broadband infrastructure. Overbuilding existing networks leads to less broadband deployment to those who need it most and abuses taxpayer resources. I encourage the Federal Communications Commission to take actions to reduce government-funded overbuilding, specifically in the E-rate program. E-rate is an important program that helps connect unserved schools and libraries so that our educational institutions can better serve their communities. However, reports of overbuilding from around the U.S., Montana, and most recently Texas, highlight a need to reform the program. Overbuilding occurs when federal funds from programs like E-rate are given to providers or non­ profits to duplicate existing networks that a different provider installed using federal funds from other programs. What this means is that instead of using our limited federal resources to connect completely unserved schools, we are instead using them to overbuild already existing networks. This is a complete abuse of federal funds, which leads to less connectivity and hurts our rural schools and communities. I have long worked to reduce overbuilding and prioritize unserved rural areas, including last congress introducing the RURAL Broadband Act to., help prevent abuse in the Department of Agriculture's Rural Utility Services program. I hopethat we can work together to reduce overbuilding in the E-rate program and throughout the federal government so that our unserved communities can better educate their students and contribute to the global economy. Thank you for your attention to this matter. I look forward to continuing to work with you to bridge rural broadband gap and finally connect our most unserved areas. Sincerely, United States Senator