Study Warns Ending E-Rate Program Could Reduce U.S. Real GDP by $4.2 Billion
A new study commissioned by the Schools, Health & Libraries Broadband Coalition (SHLB) and conducted by the Brattle Group indicates that eliminating the E-Rate program would significantly harm the U.S. economy. The study, released at the AnchorNets conference in Washington, projects that axing the broadband subsidy for schools and libraries would reduce the country’s real Gross Domestic Product (GDP) by $4.2 billion. This reduction is equivalent to approximately $1.60 in lost economic activity for every $1.00 of rescinded E-Rate funding. The E-Rate program currently spends about $2.6 billion annually to discount broadband subscriptions and networking gear for educational institutions and libraries. SHLB Executive Director Joey Wender highlighted the program's efficiency, stating that for every dollar spent, it generates $1.60, a return he described as highly desirable for any private equity fund. The Federal Communications Commission (FCC), which manages the E-Rate fund, is currently reviewing the program,...
