Remarks of FCC Commissioner Ajit Pai At The Citizens Against Government Waste Policy Breakfast

The single largest driver of the increase in the Universal Service Fund (USF) -- and hence, consumers’ phone bills -- has been the Lifeline program. Unfortunately, however, Lifeline has been laced with fraud.

So here are four simple steps that we should take to further reduce waste, fraud, and abuse in the Lifeline program.

First, the time has come to put the Lifeline program on a budget. Second, we must reduce the financial incentives for people to commit Lifeline fraud. One option would be to prohibit wireless carriers participating in Lifeline from giving away free phone service to Lifeline recipients. A second option would be to empower the states to play a stronger role in helping to police the program. A third option would be to review the size of the current Lifeline subsidy -- $9.25 per month -- and ask whether it’s too high, given that it often pays for the entire cost of a monthly phone bill.

Third, the FCC should fill the gaps in its rules that still encourage fraudulent behavior.

And fourth, the FCC must step up its enforcement efforts.