FCC chairman exposes California’s ‘Obama Phone’ fraud problem

OPINION:

Democratic politicians aren’t particularly careful when spreading around other people’s wealth. This becomes an issue only when the leaders of one-party states aspire to higher office. Such is the plight of California Gov. Gavin Newsom.

Federal Communications Commission Chairman Brendan Carr recently called out the Golden State’s presidential hopeful for allowing the nonliving to rip off Uncle Sam. “For the record, my position is that the government should not be spending your money to provide phone and Internet service to dead people. Governor Newsom is taking the opposite position, apparently,” Mr. Carr said on X.

The FCC inspector general was curious about the number of cemetery dwellers who signed up for the Universal Service Fund’s Lifeline subsidy. This is the infamous “Obama Phone” scheme that President Obama used to hand thousands of free cellphones to illegal aliens. It has long been a source of swindles.

In 2017, the Government Accountability Office exposed rampant gaming of the system. This forced the outfit that runs the fund, the Universal Service Administrative Co., to check the names of enrollees against the Social Security Administration’s Death Master File. It mostly worked. FCC investigators calculated that 1.3 million cheating attempts have since been rejected, saving up to $137 million.

California, Texas and Oregon exempted themselves from USAC oversight because they wanted to operate their own programs with the federal government reimbursing expenses. That places the burden on these states to guarantee participants are legitimate.

Of the three, California failed miserably by permitting 94,596 corpses to board the gravy train. This lack of attention to detail wasn’t accidental. The California Legislature last year enacted a law prohibiting the sharing of information needed to uncover bogus use of this handout by uninvited foreigners.

Considering this, the FCC revoked California’s ability to avoid USAC’s verification process in November. The recent inspector general report explores the sham applications filed before commissioners closed the door on the scandal.

“There has been a recent rise in non-citizens fraudulently obtaining social security numbers. And the current verification process does not do a good enough job at preventing duplicative subscriptions and similar abuse. That is why the FCC will be voting to propose reforms to this program,” Mr. Carr explained on X.

Perhaps instead of reforming the Universal Service Fund, it’s time to move on. This tool is popular among politicians seeking to buy votes. Vice President Al Gore used it to “wire the schools” to the internet, a project that quickly became obsolete as Wi-Fi emerged, providing online access without the need for pulling expensive cables through walls.

Rural politicians also exploit the fund to give constituents in remote locations gold-plated services at cut-rate prices. This, too, is no longer necessary as options such as Starlink offer high-speed internet anywhere with a view of the sky.

None of this is free. Telecommunications companies tack fees onto every bill to replenish the fund, and that drives up costs for the living. Each fake claim is repaid from taxpayers’ pockets.

Mr. Newsom downplayed the relevance of the findings and asserted, as he often does, that he is the real fraud buster. He declared that California’s moribund recipients perished after enrolling. Not so. The advisory from the inspector general, a Democratic appointee, confirmed that thousands of Californians had applied months after they ceased to exist.

The Universal Service Fund has served its purpose. It’s time to end the waste by unplugging this high-tech boondoggle.