FCC Reveals 'Modified' Lifeline NV Soft Launch in Last 3 States

The announcements confirm what stakeholders had expected: the agency is behind on what some saw as its end-of-year deadline to finish the NV rollout. Those same stakeholders had welcomed the delay because of concerns the changes to the eligibility checks could incorrectly deem ineligible some low-income people. "By December 31, 2019, we expect Lifeline eligibility will be determined in all states and territories using the National Verifier. We also expect that [Universal Service Administrative Co. (USAC)] may require testing and trials of the National Verifier prior to deployment and we allow this with the approval of the Bureau," said the commission's 2016 order on the NV.

Asked about the apparent delay to NV rollout, a USAC spokesperson emailed: "The FCC makes policy decision[s] around the National Verifier, including setting the launch schedule." The FCC didn't comment.

Due to “unique circumstances” in California, Oregon and Texas, including FCC-approved opt-outs of the national lifeline accountability database (NLAD), the bureau and USAC are working with the states on a modified soft launch, the bureau said now. Consumers will continue to apply through each state’s application process, while the state will continue to do eligibility determinations and check for duplication, the bureau said. “Unlike all other states, territories, and the District of Columbia, these three states operate their own comprehensive systems, in place of the NLAD, to prevent duplicative federal Lifeline support,” it noted. “The Lifeline program continues to rely on these states’ systems for eliminating duplicative Lifeline support. Similarly, each of these states has its own system in place to determine subscriber eligibility for the federal Lifeline program in addition to its own state-based low-income discount program.”

The countrywide checks “will operate in these three states by using state eligibility data to validate eligible telecommunications carriers’ (ETCs’) claims for federal Lifeline support and will perform reviews of state eligibility information and documentation to ensure that state eligibility determinations are made in accordance with the Commission’s rules,” FCC staff wrote. For those Lifeline applicants states can’t review, including broadband-only applicants in California, the NV “will accept applications through the service provider portal during the soft launch period, or service providers may continue to conduct their own eligibility checks using their legacy processes.” The modified approach furthers goals of the 2016 Lifeline order, the bureau said.

“Lifeline applications in these states will be reviewed by the state agency or its administrator -- an independent, objective third party -- as opposed to being solely handled by the ETC receiving reimbursement from the program, and the claims based on those eligibility results will then be validated by the National Verifier to prevent improper payments. Relying upon the states’ existing processes and automated data sources will improve administrative efficiency, streamline review of all applications, minimize consumer confusion, and support a single process for applicants to apply for both the federal Lifeline benefit and the state low-income subsidy.” And it will reduce NV costs, the bureau said.

The Texas Public Utility Commission applauds “the FCC for not only allowing Texas to continue with our proven processes, but also for working closely with us via USAC to ensure vigilance for any potential abuses of the system," a PUC spokesperson emailed. "This approach maintains simplicity for Texas Lifeline customers, ensuring better continuity in these vital services." California and Oregon commissions didn't comment.