Cramer Praises Announcement by FCC Chairman PAI on Lifeline Program

Press Release

Congressman Kevin Cramer issued the following statement today after Federal Communications Commission announced it will withdraw its defense in a lawsuit on the reforms of the Lifeline telecom subsidy program, and launch a new proceeding to undo the Obama-era reforms:
"As a former North Dakota Public Service Commissioner regulating the Lifeline Program in North Dakota, I'm grateful for Chairman Pai's continued recognition of states' rights, and I agree with his comments that "states are the best cops on the beat' when it comes to overseeing Lifeline. As I mentioned when I introduced the PSC Oversight Act back in February, the FCC doesn't have the authority, the manpower, or the local knowledge to police the entire program at a national level. That's why the states are so important in maintaining the integrity of this program. It's my hope we can move this legislation through Congress so future Administrations are prohibited from bringing back this overreaching rule. In the meantime, I appreciate Chairman Pai's efforts."
As a North Dakota Public Service Commissioner for 10 years, Cramer has advocated for the undoing of this rule in the U.S. House of Representatives.
On Feb. 16, Congressman Cramer introduced the Preserving State Commissions Oversight Act of 2017, which amends the Communications Act of 1934 to protect a state public utility commission"s role in policing and designating eligible telecommunications carriers for participation in in the Lifeline program. "In a program where waste and fraud has run rampant for years, removing the ability of states to police companies participating in the Lifeline program can only lead to further misuse of public funds," said Cramer in his February press release.
Likewise, in June 2016, Cramer, along with Senator Deb Fischer (R-Neb.) and Senator Steve Daines (R-Mont.), also led a bipartisan, bicameral coalition of 25 Members of Congress in sending a letter to then-FCC Chairman Tom Wheeler expressing concerns about the proposed changes.
The Lifeline program, often referred to as "Obamaphone," has been under intense scrutiny due to flexible eligibility requirements and abuse. In April 2016, the FCC issued a $51 million fine to a California-based company, Total Call Mobile, for signing up tens of thousands of ineligible Lifeline consumers and pocketing nearly $10 million in additional profits.
In Congress, Cramer is a member of the House Energy and Commerce Committee, which has jurisdiction over the FCC.

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