FCC Proposes Reforms to Lifeline Program Amid Reports of Abuse

The Federal Communications Commission (FCC) has proposed changes to programs designed to assist low-income Americans with phone and internet services, responding to concerns about misuse, particularly in California and other regions.

FCC Chairman Brendan Carr stated, “The government should not be spending money to provide phone or internet service to the dead,” as the commission introduced reforms to the Lifeline program, which subsidizes mobile and internet services.

Lifeline programs represent around $1 billion in annual outlays. A recent report from the agency’s Office of Inspector General (OIG) highlighted that taxpayer money had been used to subsidize services for over 116,000 deceased individuals.

The proposed reforms aim to strengthen the integrity of the Lifeline programs and include the following measures:

• Limiting Lifeline eligibility to U.S. citizens and individuals meeting specific qualifications from the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
• Implementing enhanced criteria to verify that participants are indeed legal, living, and eligible individuals.
• Improving efficiency and integrity in the program, including new measures for states that currently do not engage in verification through the Universal Service Management Company.
• Simplifying the Lifeline program rules to reduce confusion for all stakeholders involved.

In January, Carr observed that California had the highest rate of opt-out state usage, allowing it to claim federal funding for phone and internet services linked to its 94,000 deaths.

On Tuesday, the FCC announced an investigation into Lifeline providers and other opt-out states.

In light of the situation, Carr emphasized, “The government should not spend money to provide phone and internet service to the dead. This critical connectivity program is under scrutiny for possible enrollment of deceased and duplicate subscribers.” He also noted that California’s attempts to bypass federal regulations against misuse of funds have led to its removal from the ‘opt-out’ program, prompting investigations into companies that may be promoting this wastefulness.