US Senate report says spending on consultants for internet subsidy program tops $200 million annually

WASHINGTON, Oct 13 (Reuters) - A US Senate committee report released on Tuesday said consultants who assist schools and libraries in winning funding from a $3 billion annual internet subsidy program receive between $200 million and $400 million annually.

Senate Commerce Committee chair Ted Cruz said consultants help the applicants for the Federal Communications Commission E-Rate program "comply with a Byzantine process that has become a costly feature of the program."

He added that the high fees should "prompt greater scrutiny of how E-Rate funds move, who benefits and whether the program’s current structure delivers value to schools, libraries and taxpayers."