Senator Jeff Sessions, R-Mobile, and Rep. Martha Roby, R-Montgomery, are asking some pointed questions about the so-called “Obamaphone” program (known officially as “LifeLine”) that provides free cell phones to millions of Americans at a cost to taxpayers of over $9 billion a year.
Jon Paepcke of Birmingham television station WVTM revealed in an investigative report earlier this week that over 200,000 Alabamians are currently enrolled in the program. That equates to roughly 1 out of every 23 citizens of the state.
The Federal Communications Commission says it “requires that subscribers prove eligibility at the time of enrollment” upon penalty of perjury. But it is the cell phone providers who are charged with informing consumers about the rules and making sure they comply. Critics of the program believe that creates a clear conflict of interest. Providers make more money when more people signup to receive a phone, yet they are also the ones expected to keep potential abusers out of the program.
Some cell phone companies are aggressively pushing these cell phones to anyone, regardless of need, and are raking in record profits. (see some of their advertising tactics below)
Sen. Sessions recently sent a letter to the FCC asking a series of oversight questions regarding the program.
“The failure to check applicants’ eligibility might be one of the reasons the Lifeline program has more than doubled in recent years — from $822 million in 2008 to over $2 billion in the latest annual report,” Sessions said in the letter to FCC Acting Chairwoman Mignon Clyburn. “These public concerns must be addressed.”
Rep. Martha Roby, R-Montgomery, also sent a letter to the FCC in March of this year asking about the program. One of Roby’s primary concerns was the fact that LifeLine eligibility is based on participation in other federal welfare programs, such as food stamps.
Roby asked the FCC to disclose how many LifeLine participants are also participating in other welfare programs. But in their response, the FCC indicated they are not keeping track of that information. They also reiterated that it is the cell phone providers who are responsible for assessing LifeLine applicants’ eligibility.
“You had asked in your letter about the number of Lifeline customers that receive Lifeline wireless services as a result of their participation in certain federal programs,” an FCC representative wrote to Roby. “The Commission does not collect such information, as it is the responsibility of the Lifeline service providers to ensure that potential customers are eligible for Lifeline based on either their income level or their participation in one of the designated federal assistance programs.”
Roby told Yellowhammer today that the program is clearly being abused and has grown well outside of its initially intended purpose.
“One job I take very seriously in Congress is looking for and exposing instances of waste, fraud, and abuse within the government,” Roby said. “This is a clear example of a once well-intended program that is being abused, and the agency in charge can’t seem to answer basic questions about just how pervasive the problem is. The fox is guarding the hen house while the Obama Administration looks the other way.”
Roby has signed on to be a co-sponsor of a bill to return the program to its original purview: ensuring truly needy Americans have access to telephone service.
Some of the advertisements being used to promote the taxpayer funded cell phone program can be seen below.
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