Fraud Threatens Federal School Internet Program
The E-Rate program was designed to help schools and libraries get wired for the Internet. The government has disbursed more than $8 billion since 1998. The money comes from a monthly 8.7 percent tax on your phone bill that shows up as the "Universal Service Fund."
But investigators say some unscrupulous vendors and school officials have used E-Rate to line their pockets. Revelations of fraud cast doubt on the future of the program, which was championed by the Clinton administration.
