FCC’s Lifeline program providing free phone and internet confronts a crisis

Federal Communications Commission Chairman Ajit Pai recently announced a couple of changes to the Lifeline program, which supplies phone and broadband services to people without the income to pay for them. Since his appointment in 2017, the former commissioner has worked to reduce costs while phasing out support for voice-only options in favor of high-speed Internet. The changes are simple: Starting Dec. 1, Lifeline’s mobile carriers will have to offer 4.5 GB of data each month, up from 3 GB. This has extra urgency now, as the COVID-19 pandemic has driven unemployment to levels not seen since the Great Depression. The announcement sent shock waves from corporate boardrooms to nonprofits that serve asset-limited people. Public interest groups fear the impasse, if left unresolved, could undermine the premise of the 35-year-old program, which is to “ensure that all Americans have the opportunities and security that phone service brings, including being able to connect to jobs, family and emergency services,” as the FCC describes Lifeline. 

Here’s the problem: Lifeline is based on the $9.25 subsidy it provides each month to qualifying customers, those who receive federal help through Medicaid, Tribal Head Start, Federal Public Housing Assistance or similar programs, or can show earnings of less than 135% of the poverty line. The $9.25 rate hasn’t changed since 2016, when Lifeline’s minimum service standards (MSS) were created. That’s a deal-breaker for service providers.