Sen Coburn blasts FCC's phone subsidy as 'massive entitlement'

Sen Tom Coburn (R-OK) released the 2012 edition of his "Wastebook" report on the worst examples of government waste. In it he highlights the Federal Communications Commission’s Lifeline program as "ballooning out of control" and has "morphed into a massive entitlement."

"The government safety net exists to ensure all Americans have the essentials for living — food, shelter, and safety. Now that list apparently includes cell phones," he said. "To take advantage of the federal handout, prepaid wireless companies — who collect most of the subsidy — often camp out in low-income areas to get better access to those who qualify for the program," Sen Coburn wrote. He described reports that one company gave discounts to customers who referred friends and family to the program and other companies enrolled the same people multiple times.

Congress first enacted the Lifeline program in 1985, during the Reagan administration. In 2005, the FCC expanded the program to cover low-cost cellphone service. The program pays for phone service, not the phones themselves. But many companies that receive funding through the program offer free and low-cost phones to their subscribers. The discounts average $9.25 per month for qualifying households, and the program is funded through fees that the telephone companies pass on to consumers on their monthly bills. The point of the program is to ensure that everyone has access to basic communications services, especially during emergencies.