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Maintain Lifeline for truly needy
The Gazette Opinion Staff
Jun. 26, 2013 12:38 am
Gazette Editorial Board
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Twenty-five years ago, under President Reagan, a subsidized phone program was launched as part of an initiative to ensure that every American could afford to connect with jobs, family and the 911 services. Originally, it subsidized landline phone service for low-income individuals.
With the huge growth in cell phone use, the FCC made adjustments in the Lifeline program in 2005 and 2008 to allow the reimbursement toward wireless phone services. OK. But the worthy intent behind this program has been clouded by increased abuse and soaring costs.
The Wall Street Journal, among other media, reported that the federal government spent an estimated $2.2 billion last year for this subsidy, up from $819 million in 2008. Some of the growth can be attributed to the recession's impact. But a surge of participation by aggressive wireless carriers that provide service without a long-term contract is a bigger factor. In Iowa, 90,000 people were subscribers in 2012, up 60 percent over a year earlier.
The Lifeline benefit provides a $9.25 a month subsidy to one phone holder per household with annual income below 135 percent of the poverty threshold or those qualifying for federal assistance such as food stamps.
Responding to the explosive growth amid reports of some households having multiple phones in the program, and up to 40 percent of recipients not verified for eligibility, the FCC has cracked down. It's requiring wireless carriers to verify eligiblity annually and is creating a national database of eligible people.
Certainly, stronger oversight was needed. We also hope the eligiblity process becomes simpler as well as more accurate. In today's world, basic phone access is a necessary tool to help the truly needy access life-improving opportunities.
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