FCC OIG Report Suggests Agency Action to Curb Program Abuses

The FCC needs to do more to verify spending program participation and eligibility requirements, said an Office of Inspector General report on the agency’s top management and performance challenges for FY 2026. The report prioritized protecting FCC programs from abuse, safeguarding national security and strengthening cybersecurity as the top three challenges. The FCC’s “widespread reliance on unvalidated, self-certified eligibility criteria for participation in and seeking reimbursement from FCC programs is a significant vulnerability” that leads to abuse of FCC programs, the report said. “A systemic failure to verify program requirements through reliable source records encourages bad actors to do business with the Commission and allows unscrupulous program participants and their partners -- telecommunications providers, sales agents, consultants, and vendors -- to easily commit fraud against FCC programs,” the report said. The agency should incorporate “common sense verification measures before program funds are disbursed,” the OIG report said. FCC rules don’t currently apply federal regulations for suspending or debarring fraudulent entities to its subsidy programs, the report said. “Thus, as highlighted in all our Semiannual Reports to Congress for the last eight years, FCC should implement regulations necessary for the suspension and debarment guidelines to be applicable to its subsidy programs and other nonprocurement transactions, such as grants or loans, to protect itself and the entire government from fraud and misconduct,” the report said.