The Federal Communications Commission (FCC) has a welfare program called Lifeline, popularly known as Obamaphones, which provides discounts to eligible low-income households for home or wireless telephone and, as of December 2016, broadband service. Administered by the not-for-profit Universal Service Administrative Company (USAC), Lifeline disbursed about $1.5 billion in subsidies to 12.3 million households in 2016.
The subsidies are paid for by all of us via a fee charged on our telephone bills.
While the Lifeline program predates the Obama administration, having been created in the 1980s, it was vastly expanded under Obama.
Now, an investigation by the Government Accountability Office (GAO) found that as many as 36% — more than one in three — of those supposed low-income households given Obamaphones are actually of dubious qualification.
On June 29, 2017, the GAO released an 89-page report on its findings, titled Telecommunications: Additional Action Needed to Address…
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