Long-Term Strategic Vision Would Help Ensure Targeting of E-rate Funds to Highest Priority Uses

The GAO assessed issues related to the E-rate program's long-term goals, including: 1) key trends in the demand for and use of E-rate funding and the implications of these trends; 2) the rate of program participation, participants' views on requirements, and FCC's actions to facilitate participation; and 3) FCC's performance goals and measures for the program and how they compare to key characteristics of successful goals and measures. To ensure targeted and efficient use of program funds, FCC should a) report to Congress on its strategic vision for the E-rate program, including long-term goals, and b) report annually in its performance plan on undisbursed funding associated with expired funding commitments. FCC took no position on GAO's recommendations, and USAC noted it stood ready to work with FCC to develop and report performance goals and measures. (GAO-09-253)