In Relentless Pursuit of YOUR Tax Dollars: Democratic Legislation would provide subsidies for low-income broadband access

April 24, 2013

Program would be funded by tax on consumers' phone service.

New legislation proposed in the House of Representatives would update a government program for telecommunications subsidies, shifting it from telephone service to broadband service. Sponsored by Rep. Doris Matsui (D-CA), the Broadband Adoption Act of 2013 would instruct the FCC to modify the Lifeline program, which currently subsidizes telephone service for low-income Americans, offering help for households to purchase broadband Internet service instead.

"The Lifeline program provides a tangible service to lower-income Americans and it is imperative that the Lifeline program be reformed and modernized to account for broadband services," Rep. Matsui said in a press release.

The Lifeline program is funded by the "Universal Service" fees that appear on Americans' phone bills. In addition to subsidizing service for low-income Americans, the Universal Service Fund also helps pay for service in rural areas. The shift to broadband has long been under discussion in Washington. A government report recommended extending the Lifeline program to broadband in 2010.

The FCC itself has been working to overhaul the complex Universal Service system. According to Matsui, recent changes to the Lifeline program have decreased participation from 18.2 million people last August to 13.2 million this month.

Matsui's proposal has the support of the advocacy group Public Knowledge, which argued that the bill was needed as telecom providers shifted to all-IP telephony services. "Congress and the FCC must ensure that the Lifeline program continues to provide low income Americans access to these networks that connect them to critical 911 services, employment opportunities, and the broader civic community," said PK's Christopher Lewis.

Rep. Matsui introduced similar legislation in 2011, but the proposal made little headway.

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