Broadband's underused lifeline for low-income users

The Lifeline program, administered by the Federal Communications Commission, provides a $9.25 monthly subsidy (more on tribal lands) to companies that provide phone or broadband service to low-income consumers, generally at no out-of-pocket cost to the customer. But, less than a fifth of the 38 million households that qualify for the program are actually enrolled. And despite a recent uptick, enrollment remains down sharply from the Obama era. "It's very clear that the program is needed now more than ever," said FCC Commissioner Geoffrey Starks. "It's a program that is severely underutilized, and it has got to really meet the moment here."

Commissioner Starks and other critics lay the low participation rate at the feet of FCC Chairman Ajit Pai. They highlight two factors in particular as contributing to anemic enrollment:

1. Chairman Pai rolled back an Obama-era change that let the federal government approve internet service providers to participate in the program nationally, instead leaving that determination up to the states. That means any provider looking to take part in the program has to take it up with every state where they operate.
2. A database to determine who's eligible for subsidized service envisioned during the Obama administration stumbled out of the gate and isn't fully operational yet. That could make it harder to sign up new participants.

Another problem: The subsidy is too low to cover the cost of broadband, argues Benton senior fellow and public advocate Gigi Sohn. "$9.25 gets you a cheap mobile phone and 2GB of data, and that’s basically it," Sohn said. "It’s a tiny amount — it’s certainly not enough to do your homework on or telework on." "Lifeline is more essential than ever for millions of Americans, and we've got to do better by them," said Commissioner Starks.