If that were true, and if a federal subsidy were introduced, then we would certainly attempt to design the most efficient system to administer that subsidy. H.R. 1746 is a step toward a better subsidy system that the current E-Rate program. However, this proposed legislation can be significantly improved. The principles outlined above should guide any effort including the development and refinement of H.R. 1746 to reform the E-Rate program. Following are only a few examples of where this legislation can be improved.
People use the Internet.
Students, library patrons, and rural health care professionals are not the direct beneficiaries of the E-Rate. H.R. 1746 would make resources available to states, not to schools and certainly not to students. The closer a subsidy is moved to the ultimate beneficiary, the better and more accountable the subsidy system. The sunset provision in H.R. 1746 is very important. It, however, could be improved by repealing the remainder of the federal excise tax on telecommunications at the same time that the proposed trust fund expires.