USDA agency in line for $1.5 billion of broadband money has been criticized for lack of oversight

The stimulus deal struck by House and Senate negotiators would allocate approximately $1.5 billion in broadband funds to the U.S. Department of Agriculture's Rural Utilities Service. But critics worries that the RUS does not have sufficient oversight to ensure that broadband programs are properly administered.

In 2005, the USDA's inspector general reported that one-fourth of the loan money reviewed "was either not used as intended, not used at all, or did not provide the expected return of service." Cecilia Kang writes in The Washington Post that, in a separate investigation, the inspector general found that "$430,000 went to a Lubbock, Texas high-speed Internet service provider that used the money for pilot lessons for its president and treasurer."

USDA says that they have worked to correct past problems. Ag Secretary Tom Vilsack said: "It's important for folks to give us an opportunity to prove that past mistakes are in the past and corrected and that we will do a more progressive job to make sure people who need broadband service will get it."

Others say USDA lacks the experience to administer broadband grants. Ben Scott, policy director of public interest group Free Press, says the money should be administered by the National Telecommunications and Information Administration, which would handle the rest of the approximately $6 billion set aside to help create morebroadband infrastructure. (Read more) But NTIA did a questionable job of managing the consumer side of the digital TV transition.

The Daily Yonder reports that local broadband providers have told the rural news outlet "that they have experienced long delays and interminable red tape in dealing with USDA's utilities branch." But Sen. Tom Harkin, D-Iowa, fought for the agency, saying it was more familiar with rural communities and their needs. (Read more)