Opinion Pieces

The Truth About Lifeline

A program prone to waste, fraud, and abuse

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Washington, Oct 3 | comments

Recently, an outside advocacy group began an automated “robocall” campaign in Southern Ohio to encourage residents to call me to “prevent Congress from turning off the Lifeline program for our veterans.”  I received this phone call and so did many of my friends and neighbors.  

While their website doesn't provide sufficient information, it appears the group, which goes by the innocuous-sounding name, “Prepaid Wireless Users of America,” represents prepaid wireless companies that benefit from a federal program, known as Lifeline.  It has also been called the “Obama Phone” program. 

While I wholeheartedly support a company’s right to advocate for their cause, let’s have a transparent debate – and not use our veterans to cloud the issue.

The calls fail to mention the documented waste, fraud, and abuse in the Lifeline program, which I’m working to end.  It’s a cynical, age-old Washington tactic and one reason why many Americans are frustrated with politics. 

Lifeline was created in 1984 to assist some low-income Americans with phone services so they would have access to emergency and job services.  It’s funded by government-mandated fees that telephone companies often pass onto customers through the “Universal Service” fee on their bill.  In 2005, the Federal Communications Commission expanded the program beyond landlines to allow prepaid wireless carriers to participate, which led to tremendous waste, fraud, and abuse.

Participation in the program skyrocketed beginning in 2008.  By 2012, the USF more than doubled and grew from $823 million to $2.2 billion. The Government Accountability Office reported in 2010 that these increases were caused by the expansion to wireless carriers.

In 2011, a Dayton Daily News investigation found that over 26,000 subscribers were suspected of signing up for multiple lines with different wireless carriers.  Last year, the Wall Street Journal revealed that 41 percent of subscribers nationwide were not able or didn’t respond to FCC requests to confirm eligibility.

In response, the FCC recently created a database to prevent duplicative subscriptions to Lifeline. This is a step in the right direction, but more must be done. 

That is why I cosponsored H.R. 176, the Stop Taxpayer Funded Cell Phones Act of 2011, which would eliminate Lifeline program subsidies to wireless carriers. The prepaid wireless companies behind the robocalls oppose this bill because they don’t want to lose these federal subsidies.

While it is true some subscribers to Lifeline are veterans, that doesn’t change the reality that some wireless carriers and subscribers have abused the program. There are even reports of subscribers who have sold their phones on Craigslist.

As an Iraq War veteran, I understand the sacrifices our warfighters have made to serve our nation. I find it unacceptable that some are facing difficult financial circumstances. That is why I have made it a top priority in Congress to help veterans transition into the civilian workforce and receive the benefits and care they have earned. 

It is unfortunate that this group is attempting to sway public opinion by using veterans to protect the status quo – and their members’ profits.

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