Shocker: Federal phone subsidy program was abused
February 17, 2013 at 10:45 am in News by Tea Party Patriots 19 Comments
At least the Federal Communications Commission (FCC) eventually put tougher verification rules into place. Eventually:
The U.S. government spent about $2.2 billion last year to provide phones to low-income Americans, but a Wall Street Journal review of the program shows that a large number of those who received the phones haven’t proved they are eligible to receive them.
The Lifeline program—begun in 1984 to ensure that poor people aren’t cut off from jobs, families and emergency services—is funded by charges that appear on the monthly bills of every landline and wireless-phone customer. Payouts under the program have shot up from $819 million in 2008, as more wireless carriers have persuaded regulators to let them offer the service.
Suspecting that many of the new subscribers were ineligible, the Federal Communications Commission tightened the rules last year and required carriers to verify that existing subscribers were eligible. The agency estimated 15% of users would be weeded out, but far more were dropped.
A review of five top recipients of Lifeline support conducted by the FCC for the Journal showed that 41% of their more than six million subscribers either couldn’t demonstrate their eligibility or didn’t respond to requests for certification.
I don’t know about you, but I was unaware that part of my cell phone bill goes to this program. Of course, as is typical, it was abused by both recipients and big business partners. This is what happens when the federal government meddles in an area in which it doesn’t belong. Now, according to the WSJ estimate, nearly $1 billion was given out to subscribers who “either couldn’t demonstrate their eligibility or didn’t respond to requests for certification.”
Oversight is key to any government program, as the FCC learned:
The FCC until last year allowed consumers to self-certify, without requiring documentation, that they met federal poverty guidelines. Subscribers didn’t have to recertify once they were enrolled in the program, and there were few checks on whether households signed up for more than one cellphone.
“The program rules we inherited were designed for the age of the rotary phone and failed to protect the program from abuse,” FCC Chairman Julius Genachowski said.
The agency pushed through new rules last year, requiring documentation when a Lifeline customer signs up. Consumers also must certify that no one else in their households is using the program. Carriers now have to check a state or federal social-service database to confirm eligibility and must reverify eligibility every year.
Carriers were required by Jan. 31 to report the number of subscribers they had removed from Lifeline as of the end of last year. The data reviewed by The Wall Street Journal came from those reports.
The FCC said new verification procedures saved nearly $214 million last year, and projected total savings over the next three years would reach $2 billion. Disbursements under the program began to drop in the third quarter after 12 consecutive quarters of increases.
This is the irony of our inefficient, complex federal government – rather than assume efficiency as the standard, we are given the impression that cutting out fraud and wasteful us of taxpayer dollars is something to be praised. How pathetic. How can Congress expects us to trust it and the bureaucracies it creates?
I live on a fixed income, pension and disability barely able to pay bills every month and I have to contribute to free phone program that is full of fraud. Where in the hell is my free phone? I “make” too much to qualify. I’m also 500.00 a month over the limit to qualify for food stamps yet high levels of fraud exisist there too. It just isn’t right…
yeah dont feel bad. people driving nice cars get foods stamp. I dont get any either than I am trying find a job and barely even making it. you and I are not on the 47% list.
My husband is on early retirement SS. I’m currently unemployed and too young to retire and collect SS. We do not qualify for Food Stamps, Cell phones, Utility aid, etc. And next month when they start deducting his Medicare premiums we still won’t qualify…we still have too much income – now down to a little over $200 more than the poverty level for a 2 person household. We are barely making it even though we’ve never lived above our means, drive 12 & 16 yr. old vehicles and thankfully can still afford the mortgage payments. Over the past 12 years with several stints in unemployment for both of us and returns to the workforce at lower and lower wages, we have lost 75% of our income.
We have been productive members of society all our lives and our situation is by no means our choice. My husband just got tired of being laid off – and we all know it’s age related – so he was lucky enough that his last layoff came at the right age. I know for me, age is the thing too, but I still have 6 years at the earliest before I can retire at full benefits. Though we’ve weathered bad times before, I’ve never felt as hopeless as I do now.
Just drop your income below the limit and you will find yourself able to get all kinds of aid. Ridiculous but true
I also am appalled at this program. We all know that many low income people have big cars and big tv’s. They could also afford a phone, which could cost less than $20 a month for a land line..I am a senior citizen on oxygen, and live on my SS, a little over $1,000 a month. I get $16 in food stamps…I sure could use a little more…
I tell my kids all the time that stealing is stealing. If you illegally download music or software, it is the same as going into a store and stuffind a CD in your coat.
So this is the equivalent of these socialist parasites partnering up with government t and robbing us at gun point on the street. They are unlawfully taxing us to give our money to people knowingly committing a crime by taking it.
I tried to get in on the scam but Utah was ineligible because we vote the wrong way.
The only thing I can think of is, “No shit”.
Wow, what a bunch of hypocrites and uninformed people you are. The comments read as such:
I live off of SS and disability but those 47%ers don’t deserve crap, they are just a bunch of crooked people!
Or I tried to get in on this program but I make too much, in which case why are you trying to get in on a program you have no business being on. You are proving what is being said about people that shouldn’t qualify being on the program.
Almost all of you admit to getting money from govt in some way yet are pointing the finger at others that receive help. What a demented game of finger pointing and little self awareness.
One would really have to suspend belief in reality to go along with the whack-a-doodle mindset it takes to go along with this crippled so-called political tea party.
Capitalism doesnt reward laziness so you only get what you earn. Soc.Sec. was a tax to be a benefit that someone earned through working a lifetime. It wasnt designed to be welfare foodstamps or section 8 housing. That is what is ruining soc.sec.and what will ruin our country. Capitalism works Socialism parasitizes by capitalizing on either getting on the dole or ripping off the dole politically as in subsidies or contracts to friendly business in exchange for votes or donations. Large pools of money have histirically shown that corruption is larger than the pool. DRAIN ALL THE POOLS. Provide for the common defence and promote the general welfare. Right now its backwards we are providing for the welfare and promoting the common defence. The people who reached retirement age though did fullfill their payins and deserve soc. sec. as for me I would give mine up to drain the pool for Americas chidren not to be debt slaves.
Hey, Unbie, the fed mobsters took the Social Security from these people instead of letting them invest in what they would like with their money, so their only recourse to get their money back is to claim SS when they retire. I love how big govt. types want to force people into programs, then claim they have no right to complain avout govt. because they are receiving benefits from DEFINED BENEFIT PLANS. That means plans that are designed around how much they actually worked and contributed, unlike these scum freeloaders.
Wait till the healthcare is implimented with its paperwork for service. Remember all those appointments where a paper was forgotten or they forgot to tell you you needed. Think about being in need of care and the reception at triage acts like the motor vehichle division with its stickers registration and tags all requireing its own proper paper. Every little socialist finger in the cost of your healthcare pie with its own documentation so they will get paid and little old you long forgoten there hoping for a different kind of change
Have you seen the news report where the woman in Maryland had 9 government subsidized phones? Also, the article reports that 41% of those with the phones were not eligible for the program. In Maryland, the program use went from 6000 households to 215,000 between 2008 and 2012. This program is being severely abused, and all of us who purchase our own phone service are paying it. I had a $400 phone bill last month; $76 of it was taxes!
The program is unconstitutional on its face, as is the heath care takeover and just about everything else the federal government does. For starters read Jun 27 in convention. Then, read the Law of Nations, which is what the Constitution is based on and which Congress has a duty to make laws to punish violations (Art I Sec. 8). The fundamental purpose of the federal government is to PRESERVE the State governments — NOT govern the people. The federal government is the agent of the States governments — NOT the People or individuals. How is interfering with and committing aggressions against the State governments and that which is exclusively their jurisdiction (in blatant violation of the Constitution, the fundamental purpose of union and the Law of Nations) preserving them?
What do you want to bet that these “free” phones were distributed in time for the intended purpose to be used by the Obama campaign machine to “get out the vote”? (Vote early and often!)
I personally know a woman who is on much needed public assistance. She has a Revol cell phone, a land line and a free phone provided by you and me. What’s fair about this?
The whole idea is absurd. This is NOT a necessity!!!!!! It’s a privilege. Like a drivers license. Which i’m sure most with intitlement’s don’t have either. If you dig into this you’ll see just bad the whole issue really is. It’s simple. If you want luxery’s in life WORK for it!!! I work hard to support MY family. It’s wrong for me to support able bodies that scam the gov. But Rodney is correct. There’s been generations that LIVES off the gov. These people should be required to monthly drug testing (as I am to work) and banned on first offence. Welfare was a means to get back on your feet. Now there’s no shame in it. Just a way of life. Just going to get worse. I’m glad I live in south.
“Lie of the Year” by FactCheck.org, LOL but hey so what lets keep the base mad at the poor so we the rich can keep getting the free ride we are on…people learn something please!!!! check facts…you embarrass yourself
While I respect everyone’s opinion I can say that not all who are on government assistance are frauds or crooks. I have worked steady for the past 20 years I have recently lost my job and took a huge pay cut working at a local dollar store. I drive a six year old car have a son recently home pay my utilities do not have an Obama phone although I probably qualify . I am eligible for cars assist but declined to take it because I fear that things may get worse and I may need cash later. Those who live off the system have destroyed its mission. And they make hard working people like me look bad. I am in college as well .