The Federal Communications Commission has told nine companies that they can no longer provide broadband using a federal assistance program. The program gives low-income people a $9.25 monthly household subsidy to purchase home Internet or mobile broadband service.

These nine companies were the first to gain a new designation made possible by the Lifeline phone subsidy program's expansion into broadband service. Until today, the companies could sell broadband-only plans in many states to people who were eligible for the monthly subsidy. The FCC decision released today acknowledged that some poor people "will see their monthly bills increase by no more than $9.25" as a result of the decision.

This is one of several decisions made by the commission's former Democratic leadership that were rolled back today by newly appointed Chairman Ajit Pai, a Republican. "These last-minute actions, which did not enjoy the support of the majority of commissioners at the time they were taken, should not bind us going forward," Pai said.

Today's FCC Wireline Competition Bureau order said the commission is seeking to eliminate fraud in the Lifeline program. The order said that rescinding the Lifeline broadband provider designations "would promote program integrity by providing the Bureau with additional time to consider measures that might be necessary to prevent further waste, fraud, and abuse in the Lifeline program."

None of the nine providers (Spot On, Boomerang Wireless, KonaTel, FreedomPop, AR Designs, Kajeet, Liberty, Northland Cable, and Wabash Independent Networks) appear to be suspected of any financial fraud. The FCC order pointed out that Total Call Mobile recently paid a settlement of $30 million after it claimed reimbursement for duplicate and ineligible customers. But Total Call wasn't one of the nine providers that lost their Lifeline designations today.

"I'm most concerned about the children we serve," Kajeet founder Daniel Neal told The Washington Post. "We partner with school districts—41 states and the District of Columbia—to provide educational broadband so that poor kids can do their homework."

We asked an FCC spokesperson why the commission didn't let the nine providers keep offering service as long as they're not committing fraud, but the spokesperson said the commission "will let the order speak for itself." The providers offer a mix of home and mobile broadband services.

Former FCC Chairman Tom Wheeler, a Democrat, took steps to reduce fraud in Lifeline during his tenure, including the establishment of a third-party National Eligibility Verifier to prevent providers from enrolling ineligible subscribers. Wheeler's FCC also set the Lifeline program's annual budget at $2.25 billion a year, indexed to inflation. Republicans wanted to cap the budget at $1.75 billion. Lifeline is one of four universal service programs paid for by Americans through fees imposed on phone bills.

Four of the nine providers gained their designation on December 1, 2016 while the others were approved on January 18 of this year. The FCC can set aside any action within 30 days, so it had no trouble overturning its own January 18 order. The FCC was also able to set aside the December 1 approval because, within 30 days of that decision, the Tribal Telecommunications Association (NTTA) filed a petition for reconsideration, saying that the providers didn't comply with an obligation to "provide a copy of its petition to the affected tribal government and tribal regulatory authority."

This doesn't mean that poor people will be totally blocked from using Lifeline subsidies to buy broadband. There are more than 900 other providers in the 32-year-old Lifeline program. While they received their designations in order to provide subsidized phone service, an FCC decision under Wheeler last year allowed any of those companies to sell subsidized broadband to the poor. We don't know how many of those are selling subsidized broadband. The companies receive $9.25 per eligible subscriber and must offer voice, broadband, or a bundle of the two services.

What's unique about the nine providers that just lost their Lifeline designations is that they were the first to gain a new Lifeline Broadband Provider designation in many states at once. Last year's decision "enabled the FCC to approve new Lifeline Broadband Providers nationwide, instead of following the state-by-state process as used to be the case, and gradually phases out support for voice so that in the future, all Lifeline providers would have to offer broadband if they wanted Lifeline support," an FCC spokesperson told Ars.

Find another provider—or pay more

Today's FCC order discusses the transition of customers already getting subsidized broadband from Boomerang. The revocation of this company's Lifeline designation is being delayed slightly.

The FCC directed Boomerang to, within 30 days, notify "any of its customers who will be unable to receive a Lifeline discount on their broadband Internet access service as a result of this Order. This notice must inform customers that they will not receive the Lifeline discount on their current Lifeline-supported [broadband] beginning 60 days after the effective date of this Order, but that they have the option of transferring their Lifeline benefits to another Lifeline provider."

Boomerang must de-enroll the subscribers within 60 days. These are the customers who may end up paying another $9.25 a month if they cannot find another Lifeline broadband provider.

"Today, the agency reverses course on providing more competition and consumer choice for Lifeline customers," said FCC Commissioner Mignon Clyburn, a Democrat. "Rather than working to close the digital divide, this action widens the gap."

Pai previously said that bringing broadband to all Americans is one of his primary goals.