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Claim:   The Obama administration created a program to provide free cell phones to welfare recipients.

MIXTURE OF TRUE AND FALSE INFORMATION:

TRUE: A federal program subsidizes providers who supply cell phones and essential cellular services to low-income consumers.
 
FALSE: The cell phone subsidy program was enacted by the Obama administration.

Examples:  

[Collected via e-mail, October 2009]

Have you heard this one? THE OBAMAPHONE

Actually in the state of Wisconsin it is 250 minutes of Free Air Time and they are running TV ads promoting it. No Bull

Just when you think you’ve heard it all,, our illustrious Congress quietly comes up with a new zinger to put their hands in your pockets, and pick them while you aren’t watching.

Isn't this just wonderful!

I was standing in line at the checkout counter at Wal Mart and as I looked at the line behind me, I saw a couple of people talking about what looked like identical new cell phones, bragging about the fact that their phones were free and so was the airtime.

The woman in line behind me had heard the same exchange and turned to the young man behind her and asked, "Is that a new type of cell phone?"

The young man replied, "Yes, this is my new 'Obama phone'".

She asked him what an "Obama phone" was, and he went on to say that, "Welfare recipients are now eligible to receive" what he described as (1) a FREE new cell phone, and (2) approximately 70 FREE minutes of air time every month.

Needless to say, I was a little skeptical about his answer, so when I got back home, I 'Googled' it, and lo and behold, he was telling the truth.

This was what I discovered:

SafeLink Wireless is a government supported program that provides a free cell phone and airtime each month for income-eligible customers.

In other words, your tax dollars are being distributed to a wireless phone provider to provide welfare recipients with free cell phones and airtime.

I don't know about you, but as for me, enough is enough. We are $14 Trillion in debt, Congress is balking at continuing unemployment payments to those who want to work, and Congress is increasing the dole-out to dead beats.

The ship of State is sinking, and it's sinking fast. The old concept of getting ahead through hard work has flown out the window. It has been replaced by Obama's and Congress' idea of "Hope and Change." The country has changed all right, changed to "Why should I work for it, when I can get it for free?"
 

[Collected via e-mail, October 2009]

Here's another Obama program that we taxpayers are footing the bill for.

I had a former employee call me earlier today inquiring about a job, and at the end of the conversation he gave me his phone number. I asked the former employee if this was a new cell phone number and he told me yes this was his "Obama phone." I asked him what an "Obama phone" was and he went on to say that welfare recipients are now eligible to receive (1) a FREE new phone and (2) approx 70 minutes of FREE minutes every month. I was a little skeptical so I Googled it and low and behold he was telling the truth. TAX PAYER MONEY IS BEING REDISTRIBUTED TO WELFARE RECIPIENTS FOR FREE CELL PHONES. This program was started earlier this year. Enough is enough, the ship is sinking and it's sinking fast. The very foundations that this country was built on are being shaken. The age old concepts of God, family, and hard work have flown out the window and are being replaced with "Hope and Change" and "Change we can believe in."

 

Origins:   As noted on the Federal Communication Commission's (FCC) web page about Universal Service Support Mechanisms:
The Federal Communications Commission (FCC) and Congress recognize that telephone service provides a vital link to emergency services, government services, and surrounding communities. Telephone service is considered a necessity for daily modern life. Yet the cost of starting and maintaining such service may be too high for some consumers. Under Congressional mandate, the federal Universal Service Fund (USF) supports the Lifeline Assistance and Link-Up America programs. These programs provide discounts on basic monthly service and initial installation or activation fees for telephone service at the primary residence to income-eligible consumers. The Federal Communications Commission (FCC), with the help of the Universal Service Administrative Company (USAC), administers the USF.
The USF subsidizes telephone/telecommunications services to low-income residents and other entities through a number or programs, one of which is the Lifeline/Link-Up program, which "provides discounts on monthly service and initial telephone installation or activation fees for primary residences to income-eligible consumers":
Lifeline Assistance provides discounts on basic monthly service at the primary residence for qualified telephone subscribers. These discounts can be up to $10.00 per month, depending on your state.

Link-Up America helps income-eligible consumers initiate telephone service. This program pays one-half (up to a maximum of $30) of the initial installation fee for a traditional, wireline telephone or activation fee for a wireless telephone for a primary residence. It also allows participants to pay the remaining amount they owe on a deferred schedule, interest-free. (In some cases cellular service is cheaper than landlines, and the latter is not a viable option for persons without fixed residential addresses.)
The intent of these programs is to help ensure that everyone, regardless of income, has access to basic telephone services in order to be able to keep in touch with family members, make medical appointments, contact emergency services, be reachable by telephone themselves, etc. Contrary to what is suggested by the example cited above, Lifeline/Link-Up discounts are not available only to "welfare recipients" — these programs are implemented at both the state and federal levels, so qualification criteria can vary from state to state, but in general participants must have an income that is at or below 135% of the federal Poverty Guidelines, or take part in at least one of the following federal assistance programs:
  • Medicaid
  • Food Stamps
  • Supplemental Security Income (SSI)
  • Federal Public Housing Assistance
  • Low-Income Home Energy Assistance Program (LIHEAP)
  • Temporary Assistance to Needy Families (TANF)
  • The National School Lunch Program's Free Lunch Program
TracFone (through its SafeLink Wireless outlet) is one company that provides subsidized telephone service to qualifying participants through the Lifeline program, in the form of free cellphones and (limited) free cellular service. (Although SafeLink provides free service, not all carriers certified to participate in Lifeline do — others provide discounted, rather than free, wireless service.) SafeLink Wireless service is currently available only in 19 states, primarily in the eastern United States.

Also contrary to what is suggested in the example quoted above, the LifeLine program is not an "Obama program" (i.e., one that was initiated by or during the Obama administration). LifeLine was implemented by Congress well before the advent of the Obama administration, and the SafeLink Wireless service was launched by TracFone in Tennessee in August 2008 and in Florida in September 2008, months before the election that put Barack Obama in the White House.

Additional information:
    Universal Service Support for Low-Income Consumers Universal Service Support for Low-Income Consumers
Last updated:   20 October 2010

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