CAGW Seeks Strict Scrutiny of Broadband Stimulus Grants

CAGW | November 14, 2009 

CAGW this month filed letters with the National Telecommunications Information Administration (NTIA) objecting to 23 applications for broadband grants totaling $550 million under the “economic stimulus” bill.  “There have been numerous reports of waste and mismanagement of stimulus funds, such as hundreds of underage ‘first-time homebuyers,’ including a four-year-old, seeking the $8,000 tax credit,” remarked CAGW President Tom Schatz.  “There is a total of $4.7 billion at stake in the Broadband Technology Opportunities Program (BTOP), which should not become another opportunity to waste the taxpayers’ money.”  CAGW’s letters note that the entire NTIA budget in fiscal year 2009 was $658 million.  The $4.7 billion provided in the stimulus bill for the BTOP is 624.5 percent greater than that amount.  NTIA’s prior experience in issuing broadband grants was limited to the discontinued Technology Opportunities Program, which provided $233 million in grants from 1994-2004, or 5 percent of the BTOP total.  “In order for NTIA to spend $4.7 billion expeditiously without waste or mismanagement, the agency will have to thoroughly review each application.  There is a September 30, 2010 deadline to spend the stimulus money, so there may be a temptation to just say ‘yes’ to every applicant,” added Schatz.  Read more about the applications for broadband stimulus grants that CAGW has called into question. 

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