Lifeline Likely to Encounter Less Sympathetic Treatment in Senate Homeland Security Hearing
A Thursday Senate Homeland Security Committee hearing on “weaknesses" in the Lifeline USF program's management identified in a May GAO report is likely to be less balanced in the program's favor than a previous committee hearing, communications sector lobbyists from across the political spectrum said in interviews. The Senate Commerce hearing last week included a strong defense of the program from Free Press Deputy Director Jessica González and calls from Democrats for Congress to be patient before the national verifier program instituted in the FCC's 2016 Lifeline overhaul order fully rolls out in 2019 (see 1709060063).
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Senate Homeland Security leaders indicated they will be far less sympathetic to the Lifeline program during the hearing. Chairman Ron Johnson, R-Wis., told us he plans to focus squarely on “waste and abuse in the program and what we need to do to reform it so it's not a waste of money.” Ranking member Claire McCaskill, D-Mo., told us she hopes the hearing will inform how she advances on possible Lifeline legislation, which she previously said could include language to restructure the program. “That program is still rife with abuse and fraud,” she said. “We've got to get to the bottom of it and stop it.”
“It's not going to be like [the Commerce] hearing,” one telecom lobbyist said. González also expects the Homeland Security hearing to be comparatively “less balanced” and could focus too heavily on what she believes is the “runaway inaccurate narrative” about waste and fraud within Lifeline that GAO perpetuated. The study said the Lifeline program’s management remains deficient despite FCC and Universal Service Administrative Co. efforts to improve controls over finances and enrollment by low-income consumers (see 1706290037). GAO said findings were based on an extensive analysis of 2014 Lifeline data and the FCC was in the process of implementing its recommendations.
Johnson and other Senate Homeland Security Republicans have been critical of the program and few committee Democrats are known to be staunch defenders, so there's certain to be less emphasis on delaying legislation while FCC revamp efforts advance, a lobbyist said. Sen. Kamala Harris, D-Calif., may strongly defend Lifeline “given that California has a very well-regarded Lifeline program that works well with the federal program and was part of the impetus behind ensuring states retain control over those issues,” a Democratic-leaning lobbyist said. Sen. Maggie Hassan, D-N.H., “might also be a good defender” of the program, the lobbyist said. Harris and Hassan didn't comment.
González and others said they will be watching to see whether McCaskill indicates how she plans to move forward on legislation, including whether she prioritizes a cap on program funding or pursues a wholesale overhaul. González believes it would be “premature to start changing things” before the national verifier and other revamp efforts take effect. WTA Vice President-Government Affairs Derrick Owens looks forward to the national verifier “coming online” to “ensure there's not fraud and abuse.”
The three witnesses set to testify -- FCC Chairman Ajit Pai, USAC acting CEO Vickie Robinson and GAO Forensic Audits and Investigative Service Director-Audit Services Seto Bagdoyan -- are expected to focus on the ongoing Lifeline revamp efforts, including the national verifier rollout, several lobbyists said. The witnesses' written testimony wasn't available. Bagdoyan told Senate Commerce the national verifier program is a “good step forward” in improving Lifeline's management but its ultimate implementation is “going to be very important.” Pai said when the study came out that it confirmed his view that “waste, fraud, and abuse are all too prevalent” and noted that the FCC was working on internal reforms.
Free Press, Public Knowledge and more than 30 other groups urged senators to save Lifeline from what they view as “threats to weaken and eliminate it.” The focus on allegations of fraud and abuse within Lifeline is largely a bid “to eliminate or limit the program,” but “these critiques ignore the reforms already adopted that safeguard the program,” the groups wrote. “Lifeline modernization involved sweeping reforms, including minimum standards obligations, additional cost-control measures, and a budget of $2.25 billion annually. These reforms are rapidly being implemented and are the most effective way to safeguard the program and ensure that program funds go to families in need.” They faulted Pai for taking steps they view as hurting the program, including his plans to undo the agency's process for designating Lifeline broadband providers (see 1703290025 and 1703290054).