McCaskill Asks Pai to Explain FCC Actions to Recover $89 Million in Proposed Lifeline Fines
Sen. Claire McCaskill, D-Mo., asked FCC Chairman Ajit Pai to detail agency steps to recover $89.5 million in fines it proposed about four years ago against Lifeline USF providers "that profited from violating" rules for the low-income subsidy program. "It's…
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critical that the FCC Enforcement Bureau acts swiftly and aggressively to hold companies accountable for violating Lifeline program rules and to protect taxpayers and low-income Americans who rely on Lifeline," the Homeland Security and Government Affairs Committee ranking member wrote Friday in a letter an aide sent us Monday. McCaskill said the FCC September 2013-February 2014 issued notices of apparent liability to 12 Lifeline providers proposing more than $94 million in fines for enrolling ineligible consumers, but only one led to a public fine, after it was referred to DOJ for criminal prosecution. Ten of the providers continued to receive Lifeline support, totaling more than $2.4 billion in 2014-16, "just over 50% of all Lifeline funds disbursed" then, she wrote, noting that includes $1.36 billion to TracFone. McCaskill asked Pai to respond by Dec. 22. The FCC is reviewing the letter, said a spokesman.