USAC has scheduled two webinars to provide Universal Service stakeholders information regarding the Red Light Rule, which applies to all four Universal Service programs. The Red Light Rule is a collective term used to refer to regulations found in the Debt Collection Improvement Act. An E-rate applicant or service provider could be placed on Red Light status if, for example, they receive a Commitment Adjustment (COMAD) because USAC determines that disbursements should not have been made, and those funds are not repaid in a timely fashion. Entities on Red Light status will not receive any funding commitments or disbursements until their debt is paid.
According to a Funds For Learning analysis, in FY 2009 and FY 2010 combined, 20 applicants were denied nearly $2.4 million because they were on the Red Light status. The USAC webinars will discuss actions stakeholders can take to avoid being placed on Red Light status, the steps necessary to be removed from status when debts are repaid.
