Senate Report Finds E-Rate Consultants Earn Up to $400 Million
The U.S. Senate Commerce Committee reports that consultants earn hundreds of millions annually helping schools navigate the FCC's complex E-Rate funding process.
A report released by the United States Senate Commerce Committee on October 13 reveals that consultants assisting schools and libraries in securing Federal Communications Commission (FCC) E-Rate funding receive between $200 million and $400 million annually. The report notes that some districts, including Milwaukee Public Schools, pay more than $250,000 per year for these services despite receiving millions in funding over the last two decades.
Ted Cruz, Chair of the Senate Commerce Committee, described the application process as "Byzantine" and argued that the high cost of consulting fees requires greater scrutiny of fund distribution and taxpayer value. The committee recommended that the FCC mandate public disclosure of consultant compensation and freeze the program's expansion until fraud risks and vulnerabilities are resolved.
These findings follow a comprehensive review announced in June by FCC Chair Brendan Carr to determine if the E-Rate program should be reformed or terminated entirely.
