Pai Directs USAC to Implement Safeguards to Reduce Lifeline Abuse
FCC Chairman Ajit Pai ordered Universal Service Administrative Co. to impose safeguards "to mitigate the risk of waste, fraud, and abuse" in the Lifeline program subsidizing low-income telecom and broadband service. He said "immediate action is warranted" in light of…
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FCC investigations and a recent GAO report (see 1706290037). "We must be vigilant in stopping abuse of the Universal Service Fund," Pai said in a letter Tuesday to USAC acting CEO Vickie Robinson. "American taxpayers demand and deserve to know that the money they contribute each month to the Fund is not wasted or put to fraudulent use by unscrupulous eligible telecommunications carriers (ETCs)." Pai directed USAC to take numerous specific steps to address "ineligible subscribers," "oversubscribed addresses," "phantom subscribers," "deceased subscribers," "exact duplicates" and "sales agent accountability." He asked USAC to identify and audit the top 10 ETCs with the highest number of potentially ineligible subscribers according to GAO, and to review monthly a statistically valid sample of their subscribers to determine their eligibility and de-enroll the ineligible. He also asked USAC to identify and review every address associated with 500 or more subscribers, and require all relevant ETCs to de-enroll any subscribers who can't verify certain Lifeline qualifications.