Low Income
About Low Income:
- Overview of the Program
- Overview of the Process
- Individual Outreach
- Understanding Audits
- Filing Appeals
- HCLI Training Events
- Video Tutorials
Low Income Tools:
Overview of the Low Income Program
The Low Income Program of the Universal Service Fund, which is administered by the Universal Service Administrative Company (USAC), is designed to ensure that quality telecommunications services are available to low-income customers at just, reasonable, and affordable rates. Similar programs have existed since at least 1985. The Telecommunications Act of 1996 reiterated their importance by including the principle that "consumers in all regions of the nation, including low income consumers . . . should have access to telecommunications and information services . . ."
USAC is committed to ensuring program integrity, which is fundamental to USAC's stewardship of the USF. One of the many activities USAC conducts to ensure program integrity is the Payment Quality Assurance (PQA) program, which is designed to generate reliable, comprehensive data about rates of improper payments.
In the May 8, 1997 First Report and Order (FCC 97-157), the Federal Communications Commission (FCC) established rules to govern Lifeline, Link Up, and Toll Limitation Service (TLS) program support - the three components of the Low Income Program. Lifeline support reduces eligible consumers' monthly charges for basic telephone service. Link Up support reduces the cost of initiating new telephone service. Toll Limitation Service support allows eligible consumers to subscribe to toll blocking or toll control at no cost.
On June 30, 2000, the FCC amended its rules to "increase access to telecommunications services and subscribership among low-income individuals living on American Indian and Alaska Native lands." As a result of the Tribal Order (FCC 00-208), residents of federal tribal lands receive up to an additional $25 in Lifeline support (Tier 4 support) and an additional $70 in Link Up support to cover 100% of all charges between $60 and $130. These provisions bring the cost of basic local telephone service for most tribal residents to $1.00, the minimum charge for tribal Lifeline service. The Tribal Order also expanded the federal default eligibility criteria to include low-income programs that residents of tribal lands were most likely to receive assistance from.
On April 29, 2004, the FCC released the Lifeline and Link Up Order (FCC 04-87) further modifying the Low Income Program. The new order expanded the eligibility criteria for qualifying consumers to include an income-based criterion and participation in National School Lunch free lunch program and Temporary Assistance for Needy Families (TANF) as additional criteria. By expanding the eligibility criteria to include an income-based criterion, the FCC estimated that 1.17 million to 1.29 million additional households that do not participate in the program-based criteria would enroll in Lifeline based on the new criteria.
In addition, the Lifeline and Link Up Order adopted certification and validation procedures that are designed to minimize potential abuse of the Low Income Program. The FCC required carriers that serve in federal default states to complete a verification of a statistically valid sample of their Lifeline customers and submit the results to USAC by June 22, 2005 and annually on that date. The Lifeline and Link Up Order also clarified recordkeeping requirements and adopted outreach guidelines for carriers. USAC has worked closely with eligible telecommunications carriers and state commissions to help each understand what they need to do to implement the requirements of this order.
Each year, USAC completes a Lifeline Program Participation Rates study in each of the states.
