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Universal Service Fund - Wikipedia
Low income (Lifeline)[edit]
Since 1985, the Lifeline program has helped low-income people pay for phone service; first landlines, then cellphones, and as of 2016 it also offers the option of Internet connectivity.
[34] It provides a subsidy of up to $10.00 a month for Americans below 135% of the
poverty line for this service.
[35]
As of 2012, 17 million households received a $9.25 subsidized discount through the program. This was down to 12 million households by 2015.
[36][34] In 2013, the lifeline program paid out $1.8 billion in subsidies to telephone companies; reduced to 1.5 billion by 2015.
[22][34] As the original program was set up to cover land lines, there was criticism of the increasing use of the fund to cover wireless service,
[38] Residents of Native American Indian and Alaska Native tribal communities may qualify for enhanced Lifeline assistance (up to an additional $25.00) and expanded Link-Up support (up to an additional $70.00). States with their own programs may have their own eligibility guidelines.
On January 31, 2012, the Federal Communications Commission approved an order changing the Lifeline Program to reduce fraud and abuse.
[39][40] In April 2013 a hearing was held before the Subcommittee on Communications and Technology of the Committee on Energy and Commerce, U.S. House of Representatives, to explore issues relating to whether the program should be eliminated or placed under a budget cap, and if not, whether a freeze should be put in place until the reform measures currently underway are completed.
[41]
The lifeline program is limited to one discount per household. A "household" includes anyone living at the same address "who share income(s) and household expenses."
[42]
Link-Up America assisted consumers with the installation costs of phone service. Link-Up program paid up to 50% or $30 of the telephone service installation fees,
[43] and provides up to $200 of one year, interest-free loans for any additional installation costs. On January 31, 2012, among other changes to the Lifeline Program, the FCC announced that they would be ending the Link-Up America Program, except on
Indian reservations.
[43]
In 2016, Lifeline services were expanded to offer a broadband option.
[34]
Obama phones[edit]
As part of the Lifeline program, free cell phones began to be distributed to qualifying low-income recipients in late 2008, prior to the inauguration of President
Barack Obama,