Obamaphone fraud reaches $500 million annually

Program is obsolete, costs soar.

Evidence now shows that fraud from the Obamaphone program is costing American taxpayers nearly $500 million annually. The program contains a loophole that families are using to take advantage and get Obamaphones for others in their household, in spite of program rules, all subsidized by taxpayers.

LOS ANGELES, CA (California Network) - The Obamaphone program continues to balloon with both costs and services as users take advantage of a loophole to outfit their entire family with the subsidized phones.

The program popularly known as "Obamaphone" was actually launched under Ronald Reagan, intended to provide a single landline phone with 911 access to each poor household in rural areas. As cellular coverage became better, and free phones, with pay-as-you go plans, became available, the program became obsolete. Although the phones were intended for landlines, to be used for emergencies only, it has ballooned under Obama to include cellular and internet access. It is now widely used in urban areas.

The Universal Service Administrative Company (USAC), officially administers the program, by request of the FCC. It operates as a non-profit.

It should probably be scrapped, but instead, its costs continue to grow.

The program is supposed to allow one subsidized phone line per household, just for emergency use, subsidized in the amount of $9.95 per month. However, people can check a box on their Obamaphone application saying that they represent a separate household, even if their address matches with an already subsidized household.

By checking this box, a whole family can be equipped with Obamaphones and now, "Obamanet, which is subsidized internet access."

Federal Communications Commissioner, Ajit Pai (R-VA), sent a letter to the USAC pointing out how this loophole is being abused and resulting in nearly a $500 million annual expense to taxpayers.

Applicants are checking the box, lying to say they are the head of an independent household, no matter if they are or not. As a result, many people are qualifying for the program when they have no business doing so.

The Obamaphone program needs to be brought under control by Congress. It should either be eliminated, or at the very least, the loophole should be closed. Owning a phone and having internet access is not a right enshrined in the Constitution. We need to change the Constitution, or better yet, we need to change, or eliminate the fraud-ridden program.

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