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FCC Reforms $2.9B Lifeline Program After Dead Subscriber Fraud

Wall Street Journal US Business •
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The Federal Communications Commission has voted to overhaul its $2.9 billion Lifeline subsidy program following an investigation that uncovered millions in improper payments to dead subscribers. The reforms aim to tighten vetting procedures for the phone and internet subsidy program that helps low-income Americans afford connectivity.

The Lifeline program, established in 1985, provides monthly discounts on phone and internet services to qualifying households. An internal investigation revealed systemic issues with subscriber verification, leading to payments being sent to deceased individuals. This prompted the FCC to take action to prevent further waste of taxpayer funds.

Commissioners approved new measures requiring more rigorous documentation and periodic re-verification of eligibility. The changes will affect millions of beneficiaries who rely on the program for essential communications services. The reforms represent a significant shift in how the government manages this critical assistance program.