FCC Proposes Accountability Reforms to Lifeline Program

The Federal Communications Commission adopted a proposal to reform the agency’s federal Lifeline program, which accounts for nearly $1 billion in spending every year. Through the Notice of Proposed Rulemaking, the FCC seeks comment on program reforms that are designed to ensure that the Lifeline program is efficient, transparent, and accountable—while continuing to support Americans who rely on it. The Notice of Proposed Rulemaking proposes program reforms to ensure the program helps the people it is intended to benefit. Consistent with the goal of ensuring taxpayer-funded benefits are provided only to eligible recipients, the FCC will seek comment on several steps to safeguard the Lifeline program including:

• Proposing that Lifeline program support is a “federal public benefit” and is therefore available only to U.S. citizens and persons with appropriate qualified status under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996;
• Ensuring that Lifeline support is used to benefit only legal, living, and eligible Americans consistent with section 254 of the Act, through enhanced requirements that ensure program participants are truly eligible for Lifeline discounts;
• Improving program integrity and efficiency, including reforms applicable to the states that have been permitted to opt out of the program integrity verifications conducted by the Universal Service Administrative Company and instead perform their own verifications;
• Promoting more principled service provider conduct and ensuring that service providers that participate in the Lifeline program comply with all rules; and
• Streamlining Lifeline program rules and minimizing stakeholder confusion.