Governors urge FCC to oppose federal phone subsidy overhaul

The National Governors Association is opposing the Federal Communications Commission's planned overhaul of its Lifeline program, which currently offers phone subsidies to low-income Americans. The update being voted on March 31 will give Lifeline participants the option to use their subsidy to help purchase monthly Internet service. The reform will also create a national database to determine who is eligible for the subsidies.

The governors association argued the national verifier would preempt state authority and would allow phone and Internet providers to get around state oversight. The group said the change could lead to increased waste, fraud and abuse. "Governors call on the FCC to reject a proposed rule that would disrupt the existing state-federal partnership and preempt states’ authority to protect consumer interest by creating a third-party National Eligibility Verifier," the group said.