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Democrats want hearing on 'Obama phone' program
Three leading House Energy and Commerce Committee Democrats are calling for an oversight hearing on the Federal Communications Commission's Lifeline program, a phone subsidy for the poor that has been disparagingly referred to as the "Obama phone" program.
The program, which began long before President Obama took office, has been notorious for waste and abuse. The FCC enacted reforms last year aimed at trimming billions of dollars from the program, but recent reports indicate that people who are ineligible for the program are still receiving subsidies.
The program gained more attention last year when conservatives seized on a viral video of a woman saying she would vote for President Obama because he gave her a free phone. Republicans have claimed the program is a "massive entitlement" that is making people dependent on the government.
They did not dispute the value of the program, writing that "universal access to communications services is a longstanding national policy goal."
"Since 1985, the Lifeline program has helped tens of millions of low-income Americans get and keep a telephone in their home," the Democrats wrote.
But they blamed the Bush administration for making the program more wasteful. They wrote that the expansion of the program from landline service to cellular service, which occurred in 2005, "created new risks for waste, fraud, and abuse."
They applauded the current chairman, Julius Genachowski, for acting to reduce the growth in the program and tightening eligibility rules. The FCC claims the reforms have already saved $200 million.
They also praised Genachowski for cracking down on fraud. Last week, two Oklahoma providers agreed to re-pay more than $1 million to resolve an FCC investigation into abuse of the program.
The Republican Energy and Commerce Committee staff and the FCC did not respond to a request for comment on the letter.
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