Saying some fraud has already been uncovered, Sen. Roger Wicker (R-Miss.), ranking member of the Senate Commerce Committee, wants an investigation into whether billions of dollars in broadband subsidy spending already handed out went “appropriately” to unserved areas and areas economically affected by the pandemic.

Wicker is concerned the money could be used to overbuild existing providers while doing little to close the digital divide.

The CARES Act, which included COVID 19 relief-related broadband subsidies, also created the Pandemic Response Accountability Committee (PRAC) to try to prevent waste, fraud and abuse, which are always a potential problem in any large government subsidy.

Wicker said PRAC, which is part of the Council of the Inspectors General on Integrity and Efficiency, is in the best position to review multiple broadband subsidies across multiple agencies, including the Federal Communications Commission, the National Telecommunications and Information Administration (NTIA) and the Department of Agriculture, as well as state and local governments.

“The speed at which funds were disbursed in response to the COVID-19 pandemic, and the sheer amount of money involved, put the funds at high risk of fraud and misuse, making the work of oversight entities like the PRAC and IGs essential to a successful national recovery,” Wicker said in making the request. “We are already finding fraud within these new programs," which he said would continue absence the needed oversight from PRAC.”

In a letter to PRAC chair Michael Horowitz, Wicker pointed to the fact that the FCC's Inspector General had found that some broadband providers had been "fraudulently enrolling households in the Emergency Broadband Benefit [EBB] program."

Wicker asked Horowitz to answer a number of questions related to broadband subsidy oversight, including what broadband availability data the NTIA and the Treasury Department used to determine where the money went or is going. NTIA is counting on better maps from the FCC, which is in the process of creating them, but a process that is not yet complete.

Wicker also wants to know “what level of coordination is occurring between FCC, Treasury, USDA, and NTIA to protect against overbuilding and duplication of funding awards?;” “what, if any, federal, state, or local regulatory barriers are impeding or increasing costs to broadband deployment funded by these programs?;” and “what oversight measures are NTIA and Treasury implementing to ensure providers meet their buildout obligations?” ■

Republican congressional leaders have reached out to key Biden administration agencies to make sure the billions of dollars in various broadband subsidy programs created by Congress goes to areas unserved by broadband, particularly rural areas, rather than to “duplicative and wasteful subsidized overbuilding.”

The definition of “access" is key, as Republicans generally define access as the availability of  “any” high-speed broadband service — definitions differ, but speeds of 25 Megabits per second downstream and 2 Mbps upstream are considered the low end. The Biden Administration, though, has suggested that price and competition can also be factored into the access equation, which would allow for upgrades where there is already service.

Republican lawmakers sent letters to the Federal Communications Commission, the National Telecommunications & Information Administration and the departments of Treasury, Agriculture and Education, making clear where they thought the money should go. They also requested an accounting of where any of the money from the CARES Act, American Rescue Plan Act and Consolidated Appropriations Act has gone.

Also: Commerce Says CARES Act Includes $1.5 Billion for Broadband

Signing on to the letters were Reps. Cathy McMorris Rodgers (R-Wash.), ranking member of the House Energy & Commerce Committee;  James Comer (R-Texas), ranking member of the Oversight and Reform Committee; and Kay Granger (R-Texas), ranking member of the Appropriations Committee.

The NTIA is the lead agency on most of the Infrastructure Act grants, overseeing the distribution of almost $1.5 billion for access for unserved areas, tribal lands and minority communities; $42.45 billion for broadband deployment; $2.75 billion for “digital equity” grants and $1 billion for middle-mile infrastructure.  

“As you work to allocate grants pursuant to these laws, we urge you to prioritize funding for unserved communities that lack access to any broadband connection rather than funding duplicative or upgraded service in areas that already have broadband access,” the lawmakers wrote.

Also: ISPs Team to Track Biden's Broadband Billions

The legislators want answers by Jan. 14.

Anong the questions they want the FCC to answer are how it is preventing duplication with other subsidy programs — including the Rural Digital Opportunity Fund (RDOF), which is giving out its own billions for broadband in rural areas — and how the commission is preventing the overbuilding of existing service.

Small and midsized cable operators could be missing out on some government help related to COVID-19.

As part of a virtual event co-sponsored by “Strong Women of Cox California” and the California Cable & Telecommunications Association, participants will get a brief top-line briefing on a government-funded COVID-19 related tax credit some folks could be leaving on the table.

As part of President Joe Biden‘s American Rescue Plan, the 2020 CARES Act Employee Retention Tax Credit (ERTC) was adjusted to apply to more small and midsized companies.

At the Oct. 13 virtual event, Josh Fox from Bottom Line Concepts, a company that helps its clients find government aid programs, says it has found clients as much as $10 million in ERC tax breaks, up to $33,000 per employee.

According to RTC Funding, which also tracks government aid, the tax break is available for any business with under 500 employees and can be applied for retroactively.

It suggests that one reason some folks may not have taken advantage of the ERC is that they have already gotten money through the Paycheck Protection Program (PPP) and may not know that they can get the ERC tax break in addition to that.

In addition, the initial ERTC program was only available to companies that had suffered at least a 50% decline in gross receipts for any quarter in 2020. But the credit has been expanded to companies with a 20% or greater hit on revenue. It also applies to any business suffering a partial closure, according to RTC Funding.

The Federal Communications Commission said it has approved a first tranche of 62 telehealth applications for $41.98 million in its second round of funding for COVID-19 telehealth services.

In round one, the FCC allocated $200 million of CARES Act funding for 539 applications from 47 states, as well as the District of Columbia. 

The money goes to healthcare providers, but then some of it is passed along to broadband service providers. That‘s because the funds can be used to pay for telecommunications and information services, as well as connected devices, so consumer technology companies also benefit from the program.

Also Read: FCC Approves Telehealth Funding, Round 2

“During the COVID-19 pandemic, access to health care has proven to be not only a national issue, but also a local issue, and it is imperative that every community is given the tools to access this care as safely and effectively as possible," said acting FCC chair Jessica Rosenworcel.

She said the FCC factored in the hardest-hit and lowest-income areas, including tribal areas and previously unfunded states and territories, in deciding how to distribute the initial funds in the $249 million telehealth program mandated by Congress.

The next tranche will go to the next highest-scoring areas, in terms of need, until at least $150 million has been committed.

Trade associations representing broadband, streaming, wireless and tech companies have teamed up to urge Congress to fund broadband infrastructure and services, including by extending CARES Act broadband money, saying time is of the essence.

That came in a joint letter to the House and Senate leadership Wednesday (Dec. 2) from groups including NCTA-the Internet & Television Association, USTelecom, and the Internet Association.

Related: House Members Seek Permanent Broadband Aid

"Throughout the COVID-19 crisis, America’s broadband, communications infrastructure, cloud, and application providers have kept our communities connected and provided tools to help us live remotely," they write. "Even as the global economy closed down, America’s internet has remained open, strong, and resilient, ensuring our nation and our families can continue to work, learn, and function."

But they concede that while progress is being made toward universal service, "several million" Americans still lack broadband access.

They said Congress has a "unique and urgent opportunity to address the near-term broadband needs of millions of families and students" and that legislation is needed to fund 1) broadband adoption, 2) broadband deployment and investment, and 3) the new FCC broadband mapping initiative Congress itself has mandated in the Broadband Data Act.

"[A]s you finalize end of year legislation, we respectfully ask you to support funding for broadband service for families and students by extending the current CARES Act funding and ensuring that the Federal Communications Commission (FCC) has funding to develop accurate broadband maps," they wrote.

Some Wyoming cable broadband providers have complained to FCC Commissioner Michael O'Rielly about potential overbuilding of their systems by the recipients of CARES Act COVID-19 ad bill grants. O'Reilly has, in turn, reached out to the state for some answers, according to a copy or a letter to Wyoming Governor Mark Gordon.

The grants are being administered by the Wyoming Business Council's (WBC) Connect Wyoming program, O'Rielly, who is no fan of using government money to overbuild existing networks built with private capital, told the governor that based on information brought to his attention, "the WBC has not publicly released the applications or proposed coverage maps for the grant recipients, nor has it taken the requisite steps to ensure subsidized overbuilding did not and will not occur."

CARES Act Bill Has Billions for Broadband

O'Rielly said that there are allegations--he does not say from whom--that one or more of the grant recipients will wind up overbuilding recipients of the FCC's Universal Service Fund Connect America Fun Phase II money. He said if that is true, it would "not only artificially impair the value of the FCC’s past and current subsidies but would also undercut providers’ willingness to compete in future FCC reverse auctions."

He told the governor he would like the WBC to immediately release coverage maps for its projects so that current cable and fiber broadband providers in the state can challenge duplicative projects and stop funding for any that subsidize overbuilding.

The CARES Act had $1.5 billion in funding to aid communities impacted by COVID-19 that could be used for broadband deployment among many other things. Then there was another $16 billion that could be tapped for distance learning, including connectivity.

Democratic Senators Ed Markey (Mass.) and Chris Van Hollen (Md.) are calling for $4 billion in funding in the next COVID-19 relief package for home ed tech.

They said the money should be used to insure that K-12 students have home internet connectivity and devices.

The FCC presides over an E-rate educational broadband subsidy fund for school and library connectivity, but FCC chairman Ajit Pai has said that must be used for connections in physical schools and libraries, per statue, and not for home access and devices for students having to get their schooling at home. Democrats argue that the FCC can and should extend the definition of school to remote learning.

Related: Educators Say Distance Learning Dollars, Equity, Are Keys to Reopening Schools

Sens. Markey and Van Hollen, joined by Senator Majority Leader Charles Schumer (D-N.Y.), Ranking Member Maria Cantwell (D-Wash.), and Senators Michael Bennet (D-Colo.), Maggie Hassan (D-N.H.), and Brian Schatz (D-Hawaii), introduced a standalone bill to allocate that $4 billion, Emergency Educational Connections Act, back in May.

The senators scheduled a virtual hearing at about the same time House Democrats were pressing Pai over his reading of the statute to disallow that home broadband and device funding through E-rate.

Pai back in June pointed out that while the FCC's hands were tied when it comes to applying E-rate schools and libraries funding to remote learning during the pandemic, there are billions of dollars that could already be applied to that purpose that Congress has already allocated and the FCC is working on getting educators to spend on education tech.

He pointed out on a webinar that the CARES Act COVID-19 aid bill allocated $16 billion for schools and that the FCC was working with the Department of Education to let schools know that one of the things that money could be used for is educational tech. 

A couple dozen House members have asked the bipartisan leadership of the House and Senate to make COVID-19-related funding for temporary internet access programs available for "permanent solutions." 

The CARES Act allocated $150 billion for state and local governments to respond to the crisis, including for internet access programs during the pandemic. 

Related: COVID-19 Crisis Hits TV Industry

But the legislators, in a letter to their leadership, said:  "We believe it is necessary to give states flexibility to invest in permanent broadband solutions. This common sense fix will enable states to more efficiently expand internet connectivity across the country, directly meeting the immediate needs caused by the continued COVID-19 health emergency," they said. 

Related: New COVID-19 Aid Bill Heads to President's Desk

Currently, the $150 billion can only be spent on "COVID-19-related costs that were not accounted for in the most recent budget of the unit of government, and were incurred between March 1, 2020, and Dec. 30, 2020." 

They are asking that the next COVID-19 relief bill provide for that flexibility, as well as additional time to spend the money on broadband.

The FCC has approved the final batch of telehealth fund applications through the CARES Act COVID-19 Telehealth Program. 

The legislation gave the FCC $200 million to go to healthcare providers for remote treatment and diagnostics. 

Related: FCC Approves Telehealth Funding Framework 

That was back in late March. The FCC signaled two weeks ago that it was not accepting any more applications because the ones in the pipeline already would likely more than account for the $200 million. 

The FCC's Wireline Competition Bureau Wednesday (July 8) approved the last 25 applications totaling $10.73 million. Those applications were for rural and urban areas and from coast to coast, said FCC chairman Ajit Pai. 

The FCC has approved 539 applications from 47 states, D.C. and Guam. 

“In late March, Congress tasked the FCC with developing from scratch a new $200 million COVID-19 Telehealth Program to help combat COVID-19, support health care providers, and make it easier for Americans to safely access vital healthcare services,” said Pai. " Credit for this tremendous accomplishment is due to Commission staff who went the extra mile to set up the program quickly and process funding requests promptly but thoroughly..." 

It is not clear how much of that money has gone out the door. Healthcare providers generally make the outlay upfront given the immediate need for equipment and connectivity during the pandemic, then will seek the funds from the FCC to cover those expenses. 

The money goes for laptop, smartphones, tablets, connectivity, network upgrades, videoconferencing equipment, software and more for medical, dental and behavioral health diagnoses and treatment. 

The FCC said it has run through the $200 million in telehealth funding Congress gave it in the CARES Act COVID-19 aid bill. 

The FCC has so far given out over $150 million of that money and signaled Thursday (June 25) that with the applications already in and not yet granted, there is more demand than money left.  

The money has gone to healthcare providers for remote health monitoring, connectivity and equipment.

Related: FCC Approves 12th Tranche of Telehealth Funding

The Wirelines Competition Bureau said that it will no longer be accepting applications. 

The FCC started accepting applications April 13 and starting approving them only days later. 

To date, the COVID-19 Telehealth Program has approved 444 applications in 46 states (plus D.C.), totaling $157.64 million.

Related: Sen. Sullivan Slams FCC Alaska Telehealth Clawback 

"Based on the applications received to date, demand for funding exceeds available COVID-19 Telehealth Program funds and, as a result, the FCC does not want to impose burdens on health care providers who may prepare new applications that cannot be funded under the current appropriation," the bureau said. 

Some legislators want the FCC to keep them better informed on how it is spending the $200 million that Congress allocated for telehealth in the CARES Act COVID-19 aid package, suggesting their have been some issues with the process. 

A spokesperson for FCC Chairman Ajit Pai says the FCC has been administering the program transparently.

Democrats Frank Pallone (N.J.) and Mike Doyle (Pa.) wrote FCC chair Ajit Pai Friday (June 12), asking particularly about the health care providers who have applied but have not yet been approved. Various legislators wrote the FCC after providers in their states or districts sought money, urging it to give them all due consideration. 

“While the FCC has posted weekly updates of funding awards, we are troubled by the lack of transparency regarding the health care providers who have applied but have not yet received an award,” they wrote. “We have heard reports that many health care providers are facing issues obtaining funds, particularly those serving tribal lands. Similarly, health care providers report they have been unable to receive funding for some important telehealth equipment that we believe should be covered under the law.” 

The legislators want the following to be done by June 19. 

1. "On FCC’s public facing website, publish a docket that includes all of the applications the Commission has received for the COVID-19 Telehealth Program; 

2. Include information regarding applications that have been approved;

3. "For applications that have been approved, include information regarding the date on which funds were actually dispersed; and

4. "For applications that have been approved, include a summary of any uses or devices that were not approved for reimbursement."

The FCC has so far given out 104.98 million for 305 health care providers in 42 states and Washington, D.C., as of this week. It has issued public notices for each batch of approvals, identifying to whom the money is going, and for what, including for a variety of devices, software, and service. 

We have received the letter and look forward to reviewing it," said an FCC spokesperson. "However, the Commission has been administering this program in a transparent manner. We have been providing weekly announcements of all of the funding applications that have been approved along with the details of those approved telehealth projects provided by the applicants. Moreover, the Commission's website contains a list of all of the approved applications sorted by state. Going forward, our focus has been and must continue to be on processing all of the applications quickly and carefully, an effort that could be undercut if we turn our attention to creating a new system for posting pending applications."

The Senate has passed the Paycheck Protection Program Flexibility Act, which tweaks the CARES Act's program that provided forgivable loans to small businesses if they spent them on keeping workers employed. 

The bill, which has already passed the House, now goes to the President's desk. 

While the bill does not include allowing news outlets--TV and radio stations and newspapers--that are part of larger media groups to qualify individually for the forgivable small business loans it does make changes that affect the small media outlets that do qualify.  

That includes 1) allowing forgiveness for expenses beyond the eight weeks covered by the first bill, 2) eliminating the 25% limit on loan proceeds that can go to non-payroll expenses, 3) full access to payroll tax deferment, and 4) extend the deadline for rehiring beyond June 30 so that it dovetails with the expiration of enhanced unemployment payments.   

“This bill builds on the Paycheck Protection Program by providing more flexibility so businesses can stay solvent, keep current employees, and rehire others," said TechNet President Linda Moore. "TechNet was proud to support this bill in Congress because it allows businesses to make decisions that benefit their employees instead of being forced to make decisions based on arbitrary metrics. We urge the President to sign this bill immediately so businesses and their employees can experience its full benefit.”

The Commerce Department said that the $1.5 billion CARES Act funding to aid communities impacted by COVID-19 is now available, and can be used for broadband deployment among many other things.

The money was allocated to Commerce's Economic Development Administration to use as it saw fit to provide supplemental funds for coronavirus recovery assistance.

Related: FCC Gets $200 Million for Telehealth

“EDA’s CARES Act Recovery Assistance is designed to provide a wide-range of financial assistance to communities and regions as they respond to and recover from the impacts of this pandemic,” said Dana Gartzke, currently acting as assistant secretary of commerce for economic development. “We intend to deploy our CARES Act funding as quickly, effectively, and efficiently as possible, and in a manner that meets the needs of our communities.”

Among the uses the money can be put to, said Commerce, is "the deployment of broadband for purposes including supporting telehealth and remote learning for job skills."

That is in addition to the $200 million in CARES Act funds that was earmarked for an FCC COVID-19-related telehealth program.

Among those eligible for the funds are Indian Tribes, state, county and city governments, nonprofits working with those governments, and institutes of higher education. 

For application information, go here.