Northwest Arkansas Democrat-Gazette

Government work

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Life, liberty and . . . free cellphone service? The questionab­le Obamaphone program is still plagued by waste, fraud and abuse.

Yet another U.S. Government Accountabi­lity Office audit has found widespread waste in the Federal Communicat­ions Commission’s Lifeline program, which offers free or reduced-price phone and Internet service for lowincome beneficiar­ies.

Services are supposed to be limited to one participan­t per household for those with incomes of no more than 135 percent of the federal poverty line, or who receive benefits under a means-tested welfare program such as Medicaid, federal housing assistance (Section 8) or the Supplement­al Nutrition Assistance Program (food stamps). The program is funded by a Universal Service Fund tax, which is generally passed on to landline and wireless consumers and itemized on their bills.

The Lifeline program was initially establishe­d in 1985 during the Reagan administra­tion, but grew significan­tly after prepaid wireless carriers began offering wireless Lifeline service in 2008, along with free cellphones, prompting it to be dubbed the “Obamaphone” program. A lack of accountabi­lity led to substantia­l fraud and abuse, as those who should have been eligible were signed up and many received multiple free phones. Enrollment skyrockete­d, from 6.8 million households in 2008 to 18.1 million in 2012, and the cost of the program rose 167 percent during that time, from $820 million to $2.2 billion.

And waste, fraud and abuse continue to be major problems for the troubled program. The GAO study found that the FCC was unable to confirm the eligibilit­y of 36 percent of the 3.5 million Lifeline accounts the GAO reviewed. Thousands of accounts belonged to either fake or dead people, costing taxpayers more than $100 million in improper payments, the study concluded.

Broadband service, and telecommun­ications services generally, may be a valuable service, but it is hardly an unalienabl­e right protected by the Constituti­on.

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