Idaho reaches $3.5 million settlement with FCC over broadband network

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The state of Idaho and dozens of school districts have reached a settlement with federal officials over a broadband network contract deemed void by the Idaho Supreme Court.

The agreement announced Wednesday settles all financial claims between the state and 63 Idaho school districts, and the Federal Communications Commission regarding the Idaho Education Network.

The settlement calls for Idaho to pay the FCC $3.5 million to resolve claims for reimbursement of E-Rate program payments to the state and school districts for IEN broadband internet connectivity.

The E-Rate program provides discounts to assist schools and libraries in obtaining affordable telecommunications and internet access, and was used to help with the IEN.

However, the IEN contract was declared void by the Idaho Supreme Court in March 2016 over constitutional concerns.  Later that year, FCC’s E-Rate administrative arm told the state it would deny funding requests for 2013 and 2014, totaling nearly $14 million, and also required Idaho to pay back all $14.1 million in E-Rate funds received from 2009 to 2012.

The settlement payment was issued Tuesday from money previously appropriated to the Legislative Legal Defense Fund.  (Idaho Governor’s Office)

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