Hardly. “Obama phone” is the widely used — and misleading — nickname of a 28-year-old federal program known as Lifeline. It provides discounts, averaging $9.25 a month, on phone service for 13.3 million low-income subscribers.
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2 years after false rumors started that the Obama administration was giving free cellphones to poor people — and six months after a racially charged video about it went viral — a once-obscure phone service subsidy is getting renewed scrutiny on Capitol Hill.
There are growing calls in Congress to end or drastically cut back Lifeline; later this month, the House Energy and Commerce Committee will hold a hearing that could help determine its fate.
“The program has nearly tripled in size from $800 million in 2009 to $2.2 billion per year in 2012,” the senior Republicans on the Energy and Commerce Committee wrote in a March 26 letter to the Democratic minority. “American taxpayers — and we as their elected representatives — need to know how much of this growth is because of waste, fraud and abuse.”
Lifeline was begun not by President Obama but under Ronald Reagan. It expanded to include cellphone service during the presidency of another Republican, George W. Bush.
In Obama’s first term, amid evidence of widespread fraud, the Federal Communications Commission moved to crack down on the program, saving what it predicts will be $400 million this year, on top of $214 million in 2012.
Never mind all that. “Obama phone” has stuck.
Republicans employ it as shorthand for the excesses of a welfare state. So prevalent is the catchphrase that some telecommunications companies even market the discounted service as an “Obama phone” — and often add a free phone for those who sign up.
Lifeline’s intent was inarguable enough: Phone service is “crucial to full participation in our society and economy,” the FCC noted in the order creating Lifeline on Jan. 8, 1985.
Expanding Lifeline to cellphone service reflected not only technology but also the reality of how poor people live. Last year, the Centers for Disease Control and Prevention found that slightly more than half of adults in poverty lived in households that had only wireless phone service.
But in the view of many conservatives, the “Obama phone” has become Exhibit A in the case against a liberal president who they believe is doling out goodies to make people more dependent on government. It is a version of the infamous “47 percent” argument that GOP presidential candidate Mitt Romney made last year, when he claimed at a surreptiously videotaped fundraiser that nearly half the population supports Obama because it wants government handouts.
Lifeline made its way onto the radar screens of the right with an anonymous e-mail, which began circulating in 2009. It warned that free “Obama phones” were being given to welfare recipients, along with 70 minutes of service a month. “The very foundations that this country was built on are being shaken,” the e-mailer wrote.