Millions of Americans Who Didn't Qualify Claimed U.S. Lifeline Phones
February 13, 2013 9:53 AM
comment(s) - last by
Carriers say most people drop simply didn't respond to requests
The United States government has collected a tax on phone lines under the Lifeline program that began back in 1984. The purpose of this tax was to provide phone service for people who were unable to afford it on their own to ensure that these people weren't cut off from emergency services, jobs, or family. Every American citizen who has a phone line has paid into this Lifeline program.
Payouts in the program in 2008 amounted to $819 million. In 2012, the U.S. government spent $2.2 billion providing free phone service to low-income Americans.
In an effort to squash government waste, the FCC believed that many of the Americans who were claiming the free phone service were not eligible so it tightened the rules last year forcing carriers to verify that existing subscribers were in fact eligible.
Wall Street Journal
reports that far more subscribers to the program were dropped than expected. A review has shown that the top five carrier recipients of Lifeline support had a total of 41% of over 6 million subscribers that couldn't demonstrate their eligibility or simply didn't respond to requests for certification.
These top five carriers were AT&T, Telrite Corp, Tag Mobile USA, Verizon, and Virgin Mobile. Together these carriers account for 34% of all Lifeline subscribers as of May 2012. The Lifeline program is open to subscribers that meet the federal poverty guidelines, are on food stamps, Medicaid, or other assistance programs.
Previous program rules allowed consumers to certify themselves for free phone service without having to prove they met federal poverty guidelines.
Wall Street Journal
This article is over a month old, voting and posting comments is disabled
Just a small example of the explosive growth of entitlement programs
2/13/2013 3:39:33 PM
10-20 or so years ago the U.S. government had a means to mitigate entitlement program abuse: individual pride and shame. But today, and for the last four years in particular, we have many leaders in Washington DC that resort to class warfare and petty jealousy to roll out the red carpet and ring the dinner bell for 60% of the federal budget: rampant entitlement programs. Today people collect their checks with impunity. We are simply not the country of the 1980s or even when Social Security was enacted.
Today the U.S. hemorrhages money well beyond our borders. Once our credit limit gets cut -because of the inability service much less repay our debt- those that thrive on these programs and vote for the leadership that encourages them will be the first to suffer.
"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information