WASHINGTON — Costs to run a coupon program that is helping people shift to digital television are about to exceed a congressionally mandated cap, and the Bush administration is asking for more money.
Administrative costs for the program are capped at $160 million. The program provides two $40 coupons per household to consumers who will need converter boxes when full-power television stations shift to digital broadcasting in February.
The boxes retail for between $40 and $70.
Without legislative action, the Commerce Department’s National Telecommunications and Information Administration says it may run out of funds to administer the program by the end of January, according to a letter delivered to Congress late last week.
Federal law allocated $1.5 billion toward the coupon program with a maximum of $160 million to be used toward administrative expenses. So far, the NTIA has committed $157.2 million to IBM, the coupon program’s contractor — nearly $40 million more than the initial contract award.
