The Obama Phone?
Posted on October 29, 2009, Updated on Nov. 5, 2009
Q: Has the Obama administration started a program to use "taxpayer money" to give free cell phones to welfare recipients?
A: No. Low-income households have been eligible for discounted telephone service for more than a decade. But the program is funded by telecom companies, not by taxes, and the president has nothing to do with it.
FULL ANSWER
Welfare recipients, and others, can receive a free cell phone, but the program is not funded by the government or taxpayer money, as the e-mail alleges. And it’s hardly new.
How It Works
SafeLink Wireless, the program mentioned in the e-mail, does indeed offer a cell phone, about one hour’s worth of calling time per month, and other wireless services like voice mail to eligible low-income households. Applicants have to apply and prove that they are either receiving certain types of government benefits, such as Medicaid, or have household incomes at or below 135 percent of the poverty line. Using 2009 poverty guidelines, that’s $14,620 for an individual and a little under $30,000 for a family of four, with slightly higher amounts for Alaska and Hawaii.
SafeLink is run by a subsidiary of América Móvil, the world’s fourth largest wireless company in terms of subscribers, but it is not paid for directly by the company. Nor is it paid for with "tax payer money". Rather, it is funded through the Universal Service Fund, which is administered by the Universal Service Administrative Company, an independent, not-for-profit corporation set up by the Federal Communications Commission. The USF is sustained by contributions from telecommunications companies such as "long distance companies, local telephone companies, wireless telephone companies, paging companies, and payphone providers." The companies often charge customers to fund their contributions in the form of a universal service fee you might see on your monthly phone bill. The fund is then parceled out to companies, such as América Móvil, that create programs, such as SafeLink, to provide telecommunications service to rural areas and low-income households.
http://www.factcheck.org/2009/10/the-obama-phone/
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