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 QUESTION
Is this e-mail true?
I had a former employee call me earlier today inquiring about a job, and at the end of the conversation he gave me his phone number. I asked the former employee if this was a new cell phone number and he told me yes this was his "Obama phone."
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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 its hardly new.
How It Works
SafeLink Wireless, the program mentioned in the e-mail, does indeed
offer a cell phone, about one hours 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, thats $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 worlds
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," as the e-mail claims. 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.