OREANDA-NEWS. March 15, 2016. The Federal Communications Commission said Tuesday it's expanding the \\$1.5 billion phone subsidy program known as Lifeline to help low-income families pay for broadband Internet service by giving out a \\$9.25 per month subsidy. The five-member FCC will vote on the plan on March 31, and it's expected to be approved.

The Internet has become central to the daily lives of millions of people, for work and for play, but not everyone has access to broadband. More than 95 percent of US households with incomes over \\$150,000 have high-speed Internet at home, while just 48 percent of those earning less than \\$25,000 can afford such service, FCC Chairman Tom Wheeler has said in remarks defending Lifeline. The FCC says affordability is still the largest single barrier to broadband adoption in low-income households, and this reboot is supposed to help alleviate that issue.

Created in 1985, Lifeline was initially designed to provide discounts on traditional phone service for qualifying low-income families. It was revised in 2005 to add prepaid wireless mobile plans to the mix. However, Lifeline has proven controversial as fraud and abuse of the program have been rampant throughout the years.

To guard against waste in the new broadband subsidy plan, Wheeler promised that third parties instead of the mobile carriers will vet participants using eligibility for other federal programs, such as the federal food stamp program and Medicaid. Families eligible for Lifeline will only be able to get one subsidy, which means they will have to choose between discounts on voice service or broadband. The FCC also will publish data about the program, including subscriber counts.