There is a notion among the public – widely held but mistaken nonetheless – that President Obama is responsible for the program that distributes free cell phones and minutes to welfare recipients. To be clear, this is not an Obama invention, so any criticism of the president on that front is certainly mistaken and without merit. The program, however, is most definitely worthy of criticism.
It’s true that those on food stamps receive cell phones, and it is a program that grew out of a 1980s-era program to help the poor receive land lines so that they would have access to emergency services and be able to conduct personal business. In the modern age, telephones are certainly a necessity, so there appears to have been nothing untoward about the program’s origins. But when the program expanded to include cell phones and smart phones under the Bush administration (though not of his doing either), things got out of hand.
The so-called "Lifeline" program has grown under Obama, to be sure, but that’s just because the economy has been terrible and the number of people on food stamps has increased accordingly. In 2008, the program cost $819 million, but grew to $2.2 billion by last year. This is primarily the result of fraud, with users having merely to "self certify" to get the phone and then never having to re-certify thereafter. Basically, it is a "free cell phone for life" plan based on whatever anyone is willing to claim about their financial situation. The FTC is now tightening rules to cut the program by 15%, and found that "41 percent of their more than six million subscribers either couldn’t demonstrate their eligibility or didn’t respond to requests for recertification." To be clear, taxes do not pay for this service for the "poor," but fees charged by mobile carriers to paying users DO pay for it. Perhaps that fee will decrease a bit now that some of the deadwood is being cleaned up off the rolls.
It’s true that those on food stamps receive cell phones, and it is a program that grew out of a 1980s-era program to help the poor receive land lines so that they would have access to emergency services and be able to conduct personal business. In the modern age, telephones are certainly a necessity, so there appears to have been nothing untoward about the program’s origins. But when the program expanded to include cell phones and smart phones under the Bush administration (though not of his doing either), things got out of hand.
The so-called "Lifeline" program has grown under Obama, to be sure, but that’s just because the economy has been terrible and the number of people on food stamps has increased accordingly. In 2008, the program cost $819 million, but grew to $2.2 billion by last year. This is primarily the result of fraud, with users having merely to "self certify" to get the phone and then never having to re-certify thereafter. Basically, it is a "free cell phone for life" plan based on whatever anyone is willing to claim about their financial situation. The FTC is now tightening rules to cut the program by 15%, and found that "41 percent of their more than six million subscribers either couldn’t demonstrate their eligibility or didn’t respond to requests for recertification." To be clear, taxes do not pay for this service for the "poor," but fees charged by mobile carriers to paying users DO pay for it. Perhaps that fee will decrease a bit now that some of the deadwood is being cleaned up off the rolls.