Two education nonprofits on Tuesday filed a joint brief supporting a U.S. Supreme Court case against an AT&T subsidiary in Wisconsin stemming form whistleblower allegations that schools and libraries benefiting from the Federal Communication Commission’s E-Rate program were overcharged for broadband services.

The two educational nonprofit organizations — the Schools, Health & Libraries Broadband Coalition and the Southern Education Foundation — filed the brief in support of the case against Wisconsin Bell, an AT&T subsidiary in Wisconsin. The FCC’s E-Rate program provides subsidies to help eligible schools and libraries afford telecommunications and internet services. Depending on the poverty level of the school, the subsidies can cover up to 90% of internet costs.

However, the E-Rate program mandates that broadband providers charge schools and libraries the lowest possible price for internet services. This lowers the amount of subsidies the schools and libraries ask for.

Along with the issue of whether Wisconsin Bell knowingly overcharged schools and libraries that benefited from the E-Rate program, the legal question of the case is whether the subsidies — which are filed by reimbursement requests submitted by schools or libraries to the FCC — under the E-Rate program are considered “claims” under the federal False Claims Act. The claims law relates only to funds distributed by federal entities to private companies, and whistleblowers can use the law to sue...

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