WASHINGTON, D.C. – Congressman Denny Rehberg (R-MT-AL) and Congresswoman Betsy Markey (D-CO-04) today introduced bipartisan legislation in the U.S. House that would permanently exempt the Universal Service Fund (USF) from the Anti-Deficiency Act.  Although Congress has exempted USF from the Anti-Deficiency Act (ADA) annually since 2004, this bill creates continuity by making that exemption permanent.

“Rural communities depend on Universal Service for more than their telephone service,” said Rehberg, a member of the House Appropriations Committee and the Rural Education Caucus.  “These funds also help rural schools provide students with vital internet access and technology that will prepare them to compete on a level playing field.  I’m not willing to look Montana’s rural students in the eye and tell them their internet access is gone because of some bureaucratic bungling in Washington, D.C.”

“This bill helps us continue to close America’s digital divide,” said Rep. Markey. “Our communities’ schools, libraries, businesses and families – particularly in rural areas – rely on affordable telecommunications services. Since its creation, the Universal Service Fund has fundamentally transformed our education and communications systems, and ensuring its future strength will help children all across America succeed in a 21st century economy.”

USF subsidizes telephone rates for millions of consumers and businesses located in rural areas where phone service would otherwise be prohibitively expensive.  It also provides discounts to schools and libraries on their Internet service through the E-Rate program.  The funds are collected and redistributed by the telecommunications industry, not the United States Treasury.

Nevertheless, in 2004 the Office of Management and Budget decided USF must comply with the Anti-Deficiency Act and its special government accounting rules.  The ADA is a valuable measure that prevents over-spending by federal agencies by preventing them from promising funding in advance of appropriations, or spending more federal dollars than have been appropriated.

Each year since, Congress has passed a temporary exemption for USF from ADA, although rural schools find it difficult to make financial plans not knowing whether that exemption will be made in the future or whether that funding will cease.  Rehberg and Markey’s legislation finally settles this question for good.

"We applaud Representatives Rehberg and Markey for taking the lead on protecting the E-Rate program from unnecessary and damaging funding disruptions,” said Don Knezek, CEO of the International Society for Technology in Education and Keith Krueger, CEO of the Consortium for School Networking in a joint statement. “Students at Montana's schools and patrons at its libraries rely on Internet connectivity for distance learning courses, research and day-to-day communication. Service interruptions or wholesale shutdowns -- as happened in 2004 to the E-Rate with the application of the Anti Deficiency Act (ADA) -- would work significant harm on Montana's K12 students and libraries. This bill is critical to ensuring that students and library patrons gain access to the tools and technology that they need to compete in the global economy. Our members appreciate Rep. Rehberg's and Markey’s legislation and we will work hard to pass it."