Program Integrity
Assuring effective stewardship of the E-Rate program by protecting against misconduct is a priority shared by USAC, the FCC, and Congress, as well as program applicants, service providers, and the general public. To that end, the U.S. Department of Justice (DOJ), the FCC Enforcement Bureau, and the FCC’s Office of Inspector General (OIG) are committed to investigating instances of alleged misuse of funds, failure to comply with program rules, or other potential waste, fraud, or abuse of funds. To see a full list of cases of investigations across all Universal Service Fund (USF) programs, visit the Investigations Documents webpage.
E-Rate program rules impose significant restrictions on applicants, consultants, and service providers regarding the direct or indirect offering, solicitation, or acceptance of gifts from service providers or prospective service providers. Gifts are defined as gratuities, favors, entertainment, loans, or any other thing else of value. To learn more, visit the Gift Rules webpage.
Are you an E-Rate participant who needs to report potential waste, fraud or abuse of funding or a rule violation? Use the button below to submit a Whistleblower Alert.
Helpful Resources
Competitive bidding is a formal process to identify and request the eligible equipment and services the applicants need, so that potential service providers can review those requests and submit responsive bids for them. This process is designed to be fair and open, free from conflicts of interest, and requires the applicant to select the most cost-effective service offering using price of the eligible services and equipment as the primary factor in its bid evaluation factors. See additional resources below:
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After you file and certify an FCC Form 471 within the annual application filing window, Program Integrity Assurance (PIA) reviewers at USAC check the information on your form for completeness and accuracy and may have additional questions for you to answer. All FCC Form 471 applications go through an initial review and a final review, which may involve questions from PIA reviewers on eligibility of the entities receiving service, eligibility of the services/equipment requested, discount calculations, contracts, and the competitive bidding process. See additional resources below: |
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Applicants and service providers may invoice USAC for the discounted portion of the bill for the approved eligible services/equipment after invoicing prerequisites are met. These prerequisites include the applicant paying their non-discounted share of costs for the eligible services/equipment to their service provider(s), submitting the FCC Form 486 to inform USAC that the services have started, and the receipt or delivery of the approved eligible services/equipment. See additional resources below:
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Additional Resources |
Additional information to review includes: |
Recent Cases of E-Rate-Related Law Enforcement Investigations
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Kentucky Businessmen Sentenced in Decade Long Scheme to Defraud FCC |
On June 6, 2023, Charles A. “Chuck” Jones, 52, and Mark J. Whitaker, 51, both of Murray, Kentucky, have been convicted of federal crimes and sentenced for a decade long scheme to defraud the Federal Communications Commission’s (FCC) E-Rate program. |
On February 28, 2023, Damian Williams, the United States Attorney for the Southern District of New York, announced the sentencing of all seven defendants who previously pled guilty to defrauding the federal E-Rate program, in connection with E-Rate funds provided to private religious schools in Rockland County, New York. |
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On November 3, 2020, Concept Schools, NFP, agreed to pay $4.5 million as part of a civil settlement to resolve allegations that it violated the False Claims Act by engaging in non-competitive bidding practices in connection with the E-Rate program. |
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Dallas Charter School CEO Convicted in Kickback Scheme Sentenced to 7+ Years |
On January 30, 2020, a Dallas charter school CEO was sentenced to more than seven years in federal prison for her role in a corruption scandal following an investigation by the FBI Dallas Field Office. |