IG Finds More Than $300 Million in Improper Payments in Lifeline Program
December 27, 2018
A recent audit found that waste, fraud and abuse in the Lifeline subsidy program has increased exponentially as the Federal Communications Commission transitions the program from focusing primarily on landline telephones to wireless and broadband internet.
The examination from the FCC’s Inspector General discovered that improper payments in the Lifeline program rose from $40.65 million in Fiscal 2016 to $336.39 million in 2017, a more than eight-fold increase.
Auditors also found the improper payment percentage in the program was nearly 22 percent, more than double the statutory limit established by the Office of Management and Budget.
The IG examined all four programs under the umbrella of the Universal Service Fund and none of them saw close to the amount of waste as Lifeline, with the Schools & Libraries program (also commonly known as eRate) the next highest with an improper payment percentage of 4.34 percent.
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