Since 1985, the Lifeline program has provided a discount on phone service for qualifying low-income consumers to ensure that all Americans have the opportunities and security that phone service brings, including being able to connect to jobs, family and emergency services. Lifeline is part of the Universal Service Fund. The Lifeline program is available to eligible low-income consumers in every state, territory, commonwealth, and on Tribal lands.

The Lifeline program is administered by the Universal Service Administrative Company (USAC). USAC is responsible for data collection and maintenance, support calculation, and disbursement for the low-income program. USAC’s website provides information regarding administrative aspects of the low-income program, as well as program requirements.

On March 31, 2016, the Commission adopted a comprehensive reform and modernization of the Lifeline program. In the 2016 Lifeline Modernization Order, the Commission included broadband as a support service in the Lifeline program. The Commission also set out minimum service standards for Lifeline-supported services to ensure maximum value for the universal service dollar, and established a National Eligibility Verifier to make independent subscriber eligibility determinations.

Below are highlights of the reforms made in the 2016 Lifeline Modernization Order:

Minimum Service Standards & Support Amounts Date Mobile Voice Mobile Broadband Fixed Broadband Voice Support Amount (Per Month) Broadband Support Amount (Per Month) December 1, 2016* 500 Minutes Speed: 3G Usage Allowance: 500 MB Speed: 10/1*** Usage Allowance: 150 GB $9.25 $9.25 December 1, 2017 750 Minutes Speed: 3G Usage Allowance: 1 GB Speed: 15/2*** Usage Allowance: 250GB $9.25 $9.25 December 1, 2018 1000 Minutes Speed: 3G or Bureau Determination Usage Allowance: 2 GB Speed: 18/2 Usage Allowance: 1000 GB $9.25 $9.25 December 1, 2019 1000 Minutes Speed: 3G or Bureau Determination Usage Allowance: 3 GB Speed: 20/3 Usage Allowance: 1024 GB $7.25 $9.25 December 1, 2020 1000 Minutes Speed: 3G or Bureau Determination Usage Allowance: Updating Mechanism Speed: Mechanism Usage Allowance: CAF Standard or Bureau Determination $5.25 $9.25 December 1, 2021 1000 Minutes** Speed: 3G or Bureau Determination Usage Allowance: Updating Mechanism Speed: Mechanism Usage Allowance: CAF Standard or Bureau Determination $0** $9.25 * Minimum service standards and support amounts will be implemented on the later of December 1, 2016 or 60 days after PRA approval.

** Continued voice support of $5.25 per month in areas with only one Lifeline provider.

*** Fixed broadband providers that do not offer a product meeting the minimum service standards to a particular customer’s residence may receive the $9.25 benefit if that customer purchases a fixed broadband offering that meets or exceeds 4 Mbps download and 1 Mbps upload. Lifeline Providers Eligible Telecommunications Carrier (ETC) Designations Lifeline providers must still be ETCs

FCC preempts states from designating Lifeline Broadband Provider (LBP) ETCs, which are designated by the FCC

States’ continuing role: Develop and manage state programs, if applicable Designate non-LBP ETCs, where states have jurisdiction General consumer protection and oversight of providers participating in Lifeline, if applicable

More information about ETC requirements available here ETC Obligations Lifeline-only ETCs Can receive support for voice and BIAS Can use forbearance from obligation to offer BIAS

ETCs that are not Lifeline-only (High-Cost recipients) Can receive support for voice and BIAS Can use forbearance from obligation to offer BIAS, except where they commercially offer BIAS pursuant to high-cost obligations More information regarding high-cost recipients’ Lifeline-supported BIAS obligations are available here. Not required to offer Lifeline voice where: 51% of Lifeline subscribers in a county obtain Lifeline BIAS (NLAD and Opt-out date); There are at least 3 other Lifeline BIAS providers that each serve at least 5% of the Lifeline BIAS subscribers in that county (NLAD and Opt-out data); and The ETC does not receive high-cost support in that area

Relinquishing an ETC Designation Other ETCs: Process is unchanged National Verifier National Eligibility Verifier The National Verifier will utilize data from program databases and subscribers’ records to make eligibility determinations. Consumers, providers, and state and Tribal administrators will be able to access components of the National Verifier to confirm eligibility, facilitate administration and reduce waste, fraud, and abuse. Budget Budget The budget will be $2.385 billion for the calendar year beginning January 1, 2020.

If, in a given year, spending meets or exceeds 90% of the budget, FCC staff will write a report detailing the causes of the increased spending, and recommending any necessary changes.

The budget will be indexed for inflation. Devices Devices The Order promotes access to Wi-Fi enabled devices and hotspot functionality to help close the homework gap

All providers who choose to provide devices to their consumers must provide devices that are Wi-Fi enabled by December 1, 2016.

Providers who choose to provide devices to their consumers must offer devices that are equipped with hotspot functionality, in accordance with the following transition period: Date Hotspot Requirement December 1, 2016 (or 60 days from PRA approval, whichever is later) At least 1 device December 1, 2017 15% of offered devices December 1, 2018 20% December 1, 2019 25% December 1, 2020 35% December 1, 2021 45% December 1, 2022 55% December 1, 2023 65% December 1, 2024 75% Eligibility Eligibility Status Type of Eligibility Kept Supplemental Nutrition Assistance Program (SNAP)

Supplemental Security Income (SSI)

Medicaid

Federal Public Housing Assistance

Tribal-specific programs: Bureau of Indian Affairs General Assistance, Tribally-Administered Temporary Assistance for Needy Families (TTANF), Food Distribution Program on Indian Reservations (FDPIR), Head Start

Income at or below 135% of the Federal Poverty Guidelines Added Veterans Pension and Survivors Benefit Programs Removed National School Lunch Program

Temporary Assistance for Needy Families

Low-Income Home Energy Assistance Program

State-created criteria Effective December 1, 2016 for new subscribers Effective for existing subscribers’ first rolling recertification date Federal rules prohibit eligible low-income consumers from receiving more than one Lifeline discount per household. An eligible consumer may receive a discount on either a wireline or wireless service, but not both. A consumer whose household currently is receiving more than one Lifeline service must select a single Lifeline provider and contact the other provider to de-enroll from their program. Consumers violating this rule may also be subject to criminal and/or civil penalties.

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