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

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Brief Summary

A Senate report reveals the ugly truth about the FCC's E-Rate program: for every dollar meant to help schools get online, a hefty cut goes to a legion of consultants who essentially serve as gatekeepers to a labyrinthine federal application process. Ted Cruz, likely while brandishing a chart, notes these fees total between $200 million and $400 million annually—enough to buy a lot of fiber optic cable, or a few private islands for 'grant strategists.'

Why This Matters

For the average taxpayer, this is confirmation that the federal bureaucracy has become a perpetual motion machine of red tape, feeding itself. For parents and students, it means your school's bandwidth might be limited by the cost of the middleman's salary. And for anyone hoping for a smaller, more efficient government, it's a stark reminder that 'simplification' is a four-letter word in Washington — unless it's followed by 'consulting fee.'

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