by Scott Emick
1/28/2025
The term “Obama phones” is a misnomer and refers to the Lifeline Assistance Program, a government program that predates President Barack Obama. Here’s a breakdown of the details:
Origins of the Program
- Lifeline Program: Created in 1985 under the Reagan administration, the program initially provided discounts on landline phone services to low-income households.
- In 2005, during the George W. Bush administration, the program was expanded to include cell phones.
- The program gained the nickname “Obama phones” because of expanded awareness and political rhetoric during President Obama’s tenure, but he did not start or personally expand the program.
Who Pays for These Phones?
The program is funded by the Universal Service Fund (USF), which is financed through fees charged to telecommunications companies. These companies often pass the cost to consumers via a Universal Service Fee on phone bills. This tax can be quite high as a percentage 15-33% from what I read of the phone bill. We should allow people to opt-out based on financial hardship. There are already too many taxes.
Who is Eligible?
Eligibility for the Lifeline program is determined based on income or participation in federal assistance programs. You may qualify if you:
- Have a household income at or below 135% of the Federal Poverty Guidelines, or
- Participate in programs such as:
- Medicaid
- Supplemental Nutrition Assistance Program (SNAP, formerly food stamps)
- Supplemental Security Income (SSI)
- Federal Public Housing Assistance (FPHA)
- Veterans Pension and Survivors Benefit
What Does the Program Provide?
- Eligible individuals receive a discounted or free phone and reduced-cost phone or internet services.
- Service offerings vary by provider and state.
If you’re interested in applying or learning more, you can check the official Lifeline Support website or contact a participating service provider.
