What’s happening to the Lifeline Assistance free government cell phone program? It’s losing customers left and right and in between.
The Federal Communications Commission recently reported that the number of subscribers has plummeted for the second straight year after years of rapid growth.
The number of users in the Lifeline subsidy program dropped 7.3% to just 13.4 million in 2014. The number of subscribers hasn’t been this low since 2010. The numbers dropped from a peak of 17.1 million in 2012.
So what’ style cause of the drop? Is it an improving employment picture across the United States? Is it the fact that the FCC imposed far more stringent regulations in 2012 to cut down on fraud, waste, and abuse? Most likely, we’d guess, it’s a combination of those two factors.
According to law360.com:
… the report included no official agency explanation for the declining numbers, FCC spokesman Mark Wigfield said by phone Wednesday that the streamlining efforts three years ago played a role.
“Elements of the 2012 reforms have certainly contributed to lower subscriber numbers,” he said.
Before the FCC instituted the more stringent program eligibility regulations back in 2012, fraud, waste and abuse really were out of control. Many households received more more than one free government cell phone and numerous news stories highlighted unscrupulous individuals who had five, ten or even twenty free phones. In other words, the new rules were a very reasonable response to unreasonable fraud, theft and abuse within the program.
Another simple change put into effect in 2012 seems to have had a major impact on users. That change required users to recertify their eligibility annually. Prior to that rule, users had absolutely no motivation to give up their phones when their financial situation changed for the better. For example, if free phone subscribers landed jobs that lifted them out of poverty, they often kept their phones even after they no longer qualified for the program. As a result of the rule change we’ve seen those people giving up their phones rather than re-certify that they qualify for the free government cell phone program.
More changes are coming
Subscriber numbers are going down, but the FCC is on the verge of introducing major changes to the Lifeline Assistance program.
For example, the government watchdog recently voted to expand the Lifeline free government cell phone program to include high-speed broadband service. law360.com says other changes designed to benefit consumers include, “…ensuring minimum service standards for both voice and broadband, changing who determines eligibility for the program and determining a way to increase the competition among providers.”
Are there really fewer people who need free government cell phones?
We’re not so sure. The national unemployment rate — the most widely quoted barometer of our nation’s fiscal wellbeing — has gone down to 4.9%. Many economic observers, however, believe that the numbers of being manipulated by political appointees in order to make things seem rosier in an election year.
But just as surely, there are other economic measures that present a different picture.
For example, business cable network CNBC seems to be among the doubters. In a report on the “real” unemployment rate, it said:
One of those figures is called the U-6 rate. Many economists look to the U-6 rather than the main unemployment rate (also know as the U-3). The BLS defines U-6 as “total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force,” plus all marginally attached workers.
In other words, the unemployed, the underemployed and the discouraged — a rate that remains stubbornly above prerecession levels.
The U-6 rate dipped in September to 10 percent, the one bright spot of the jobs report.
Got that? The real percentage of people in the United States who are unemployed or virtually unemployed is really closer to 10%. But that’s not the end of the grim numbers for America’s poor.
America’s neediest citizens, those who depend on SNAP (the Food Stamp Program) are about to get unexpectedly whacked up the side of the head with a 2×4 and, therefore, need the free government cell phone program more than ever.
The Center on Budget and Policy Priorities explains some little known changes that are now coming into effect.
More than 500,000 and as many as 1 million of the nation’s poorest people will be cut off SNAP (formerly known as the Food Stamp Program) over the course of 2016, due to the return in many areas of a three-month limit on SNAP benefits for unemployed adults aged 18-49 who aren’t disabled or raising minor children. These individuals will lose their food assistance benefits after three months regardless of how hard they are looking for work. The impact will be felt in the 23 states that must or are choosing to reimpose the time limit in 2016.
Ouch. That’s going to hurt many of the same low-income Americans who desperately need a free government cell phone at the very same time that the program is being cut back.
It’s clearly a case of one government hand not knowing what the other government hand is doing.
We have often editorialized in favor of reducing fraud, waste and abuse in the invaluable Lifeline Assistance free government cell phone program. But it is incredibly shortsighted for one government policy to reduce the program’s budget at the same time that another government policy is increasing the number of people who need it.
We urge the FCC and officials of the SNAP program to compare notes and determine what’s really needed before issuing any new regulations that will harm America’s most vulnerable citizens.
Jena says
I have to disagree somewhat with this article, I feel its the new laws and regulations that we must follow as independent contractors enrolling people into the Lifeline service. We no longer can have tables or tents and if we are set up in a store IE Walmart we are not allowed to approach a customer. There is a HUGE need in communities for these phones, but the ability to give them to the community is almost zero!
Free Government Cell Phones says
We have often said we are wary of street or parking lot tents and tables, Jena. We understand the need in the community, but there have been so many case of fraud and abuse at these tents and tables that we cannot in good conscience tell our readers to trust them. There’s just no way to tell the legitimate services from the crooked ones. Potential customers are much better off applying online or by phone.
Jackie Ashcraft says
I have applied for service and uploaded a picture of my driver’s license and my snap benefits card. How do I know if I am approved?
Free Government Cell Phones says
The process varies by state. As a result, so does the time required for approval or denial. Sorry we can’t be more specific.
PJ Giorgi says
Years ago, I applied for Lifeline, sent proof, got it quickly – no problem. THIS time, it’s been crazy ridiculous. First application, I’m in 3, that’s THREE, programs that qualify me. Sent ALL copies- high quality, easy to read, copies. DENIED- “couldn’t read the copies”
Sent in again, this time, not only high quality copies, but wrote out ALL numbers involved on all cards proving eligibility in big, fat sharpie, impossible to NOT be able to read!! Again, 3 programs where only one is required.
DENIED- this time why? “your signature didn’t match” This time I called Lifeline, asked what my signature didn’t match – I’ve had the same signature for about 50 years now. Besides, they didn’t have but one signature of mine, so which one did it not match?! The man who answered said perhaps my signature wasn’t “legible”. If it was legible, it wouldn’t be MY signature. Now what do you want me to do, to send, to copy, etc?!?! Oh, well, now you have to call the Provider you wanted, have them send you ANOTHER APPLICATION, send it in with only a copy of your Medi-Cal card. (Besides the 3 programs that each qualify me, I’m also qualified by my 30% BELOW poverty line income, so forgive me if I’m feeling like Lifeline is screwing with me in finding arbitrary and ridiculous excuses for taking up more of my time, postage, copy costs, waiting for more stuff to come in the mail, etc etc – just beyond ridiculous. If I didn’t need a cell phone so desperately, I would tell them where to stick my next 5 denials I expect will be coming in the mail after I jump through the next 25 hoops they’ll be laughing at me while I jump through them – disgusting, not helpful at all.) Mind you, not one other person in my 71 unit Section 8 building has had ANY trouble getting a phone the very first application. WTF!
Free Government Cell Phones says
Absolutely ridiculous, PJ. We’re sorry you’ve had so much trouble. It’s especially crazy when you consider all the stories out there about people getting phones with false documents or no documents at all.
All we can suggest is keep trying. Or for perhaps the first time ever, we might suggest that you find a street booth and sign up in person. It might be the only way to avoid this runaround you’ve been put through.
JC Keller says
The numbers fell because millions lost their phones after initially showing their EBT, but were then unable or unwilling to recertify after the first year. In short, fraud is being reduced drastically!
Steve says
First, good of you to bring this to your readers attention. Some may never have known this or some may have forgotten it as I have.
I would think that the newly elected President and party would have to address this in one way or another, be it a Pro or a Con. So some people would surely see a laps in coverage and benefits till they do.
The article you linked to (clicking on the BLUE Underlined “explains” above), I found this interesting-
“”The information necessary to make this determination will not typically be found in the individual’s case records because states had no reason to explore exemptions from the time limit while the time limit was not in effect. Similarly, states typically track an individual’s earnings instead of their hours worked. As a result, states must communicate with those potentially subject to the time limit to try and capture this additional information. In addition, the state must track the 36-month period for each individual in order to determine whether the three-month limit has been reached. This is the only provision in SNAP law that requires counting and tracking months in this way, and it necessitates special computer programming and staff training.””
As well as this-
“”For example, states may not always provide adequate guidance for caseworkers to identify people with temporary disabling injuries or mental illness who are unable to work for a period of time and thus are supposed to be exempt. Many SNAP participants are unaware that temporary disabling injuries can qualify someone for an exemption.””
So I would tell someone cut-off of SNAP’s benefits, to appeal that decision against you if you fall into some EXEMPTION status, know your rights.
Usually in any SNAP’s decision letter to you – it’s explained how to appeal the decision.
Thanks
Free Government Cell Phones says
Thanks for taking the time to explore that issue, Steve. Many of our readers are sure to appreciate your efforts.
BostonHolly says
You are absolutely correct, even when denied for some incredibly stupid reason, the letters sent are generic, general and redundant requesting information you have repeatedly submitted, thus, confusing. However, the appeal process, at least in MA, buys you some time until it gets sorted out. In our Primary Care’s office there is an assigned MSW who is extremely helpful when it comes to navigating the verbiage within government programs and she has helped me find the people who can supply the answers , the MSW’s withing health care clinics are quite knowledgeable and are familiar with the agencies and even some of the directors and can put you in touch with the people and or organizations who can help guide you thru confusing, government programs and documents, My PCP send me to our MSW and she’s been incredibly helpful.
Diane Murray says
according to the “grapevine” poor signal is another reason people have dropped out, also complaints of the phones not working after a sort period of time. Talk to the ones who have used the free lifeline and ask them the questions about why they changed!!!!!!!!!!!
JC Keller says
I can’t agree with that. I am in a rural area, and signal is great. VERY few areas of the country have unserviceable signal for voice and text. Most providers do a good job of either not offering service where they can’t, or, select from the choices available that will assure at least basic service.
I imagine 90%+ of the reduction is weeding out fraud by attrition (those who initially “easily” signed up were unable or unwilling to recertify), and nearly all the rest actually had improved financial circumstances.
BostonHolly says
Your imagination needs some work but more importantly so does your reasoning and sense of logic. Because you have a good signal in the middle of nowhere does not mean that fraud is being committed in areas where signal strength is poor. Or where people have been given 3rd rate, rejected phones because they are so outdated. Urban areas often have signal problems. i live in Boston and the phone I have is technologically useless; using your method of reasoning, I must be committing fraud. The biggest fraudulent activity is typically committed by the higher level, white collar ilk *or* at middle to upper echelon government agencies staff ,. catch up on some of your current events reading, before you puke out your anger all over everyone. . Greed and fraud are a human sport; Ignorance and arrogance, lack of empathy and lack of kindness are a chosen path as well.
Karen says
I am on the government phone program as well and have been for the last 3 years. I live in the valley of California I’ve had to change providers 4 times because the phones they send you are cheep garbage that constantly have problems like cutting you call off as your talkong and,not being able to hear anyone when you answer the phone & many other issues plus the signal strength is horrible. The internet speed is horrible as well.
Free Government Cell Phones says
We talked to thousands of them here every day, Diane. Many rural residents complain about poor signals. Believe it or not, we once lived in an area where cell phone reception was so bad that we had to lean out the kitchen window to keep a decent signal.