Proposed Rule2026-06531

Lifeline and Link Up Reform and Modernization; Bridging the Digital Divide for Low-Income Consumers; Telecommunications Carriers Eligible for Universal Service Support; Affordable Connectivity Program; Emergency Broadband Benefit Program

Primary source

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Published
April 3, 2026

Issuing agencies

Federal Communications Commission

Abstract

In this document, the Federal Communications Commission (Commission) seeks to ensure that Lifeline services are used to benefit and support eligible low-income Americans, that the program's funding is protected from waste, fraud, and abuse, and that service providers are in compliance with Commission rules. The Commission also seeks to update and streamline Lifeline and related rules.

Full Text

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<title>Federal Register, Volume 91 Issue 64 (Friday, April 3, 2026)</title>
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[Federal Register Volume 91, Number 64 (Friday, April 3, 2026)]
[Proposed Rules]
[Pages 16871-16893]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06531]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket Nos. 11-42, 17-287, 09-197, 21-450, 20-445; FCC No. 26-8; FR 
ID 338251]


Lifeline and Link Up Reform and Modernization; Bridging the 
Digital Divide for Low-Income Consumers; Telecommunications Carriers 
Eligible for Universal Service Support; Affordable Connectivity 
Program; Emergency Broadband Benefit Program

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) seeks to ensure that Lifeline services are used to benefit 
and support eligible low-income Americans, that the program's funding 
is protected from waste, fraud, and abuse, and that service providers 
are in compliance with Commission rules. The

[[Page 16872]]

Commission also seeks to update and streamline Lifeline and related 
rules.

DATES: Comments are due on or before May 4, 2026 and reply comments are 
due on or before June 2, 2026. If you anticipate that you will be 
submitting comments but find it difficult to do so within the period of 
time allowed by this document, you should advise the contact listed 
below as soon as possible.

ADDRESSES: Pursuant to Sec. Sec.  1.415 and 1.419 of the Commission's 
rules, 47 CFR 1.415, 1.419, interested parties may file comments and 
reply comments on or before the dates indicated in the DATES section of 
this document. You may submit comments identified by WC Docket No. 11-
42, 17-287, 09-197, 21-450, and 20-445, by any of the following 
methods:
    <bullet> Electronic Filers: Comments may be filed electronically 
using the internet by accessing the ECFS: <a href="https://www.fcc.gov/ecfs/">https://www.fcc.gov/ecfs/</a>.
    <bullet> Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing.
    [cir] Filings can be sent by hand or messenger delivery, by 
commercial courier, or by the U.S. Postal Service. All filings must be 
addressed to the Secretary, Federal Communications Commission.
    [cir] Hand-delivered or messenger-delivered paper filings for the 
Commission's Secretary are accepted between 8:00 a.m. and 4:00 p.m. by 
the FCC's mailing contractor at 9050 Junction Drive, Annapolis 
Junction, MD 20701. All hand deliveries must be held together with 
rubber bands or fasteners. Any envelopes and boxes must be disposed of 
before entering the building.
    [cir] Commercial courier deliveries (any deliveries not by the U.S. 
Postal Service) must be sent to 9050 Junction Drive, Annapolis 
Junction, MD 20701.
    [cir] Filings sent by U.S. Postal Service First-Class Mail, 
Priority Mail, and Priority Mail Express must be sent to 45 L Street 
NE, Washington, DC 20554.
    <bullet> People with Disabilities: To request materials in 
accessible formats for people with disabilities (Braille, large print, 
electronic files, audio format), send an email to <a href="/cdn-cgi/l/email-protection#670104045257532701040449000811"><span class="__cf_email__" data-cfemail="8ceaefefb9bcb8cceaefefa2ebe3fa">[email&#160;protected]</span></a> or 
call the Consumer & Governmental Affairs Bureau at (202) 418-0530 
(voice).
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Contact Eric Wu, <a href="/cdn-cgi/l/email-protection#0a6f786369247d7f4a6c6969246d657c"><span class="__cf_email__" data-cfemail="1f7a6d767c31686a5f797c7c31787069">[email&#160;protected]</span></a> 
Wireline Competition Bureau (WCB), 202-418-7400 or TTY: 202-418-0484. 
Requests for accommodations should be made as soon as possible in order 
to allow the agency to satisfy such requests whenever possible. Send an 
email to <a href="/cdn-cgi/l/email-protection#b0d6d3d3858084f0d6d3d39ed7dfc6"><span class="__cf_email__" data-cfemail="63050000565357230500004d040c15">[email&#160;protected]</span></a> or call the Consumer and Governmental Affairs 
Bureau at (202) 418-0530.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Lifeline and Link Up Reform and Modernization et al., Notice of 
Proposed Rulemaking (NPRM) in WC Docket Nos. 11-41, 17-287, 09-197, 21-
450, and 20-445; FCC No. 26-8; adopted February 18, 2026 and released 
February 23, 2026. The full text of this document is available for 
public inspection during regular business hours at Commission's 
headquarters 45 L Street NE, Washington, DC 20554 or at the following 
internet address: <a href="https://docs.fcc.gov/public/attachments/FCC-26-8A1.pdf">https://docs.fcc.gov/public/attachments/FCC-26-8A1.pdf</a>.

Synopsis

I. Discussion

    In the NPRM, the Commission takes a comprehensive look at the 
Lifeline program and proposes reforms to enhance program integrity and 
combat waste, fraud, and abuse. First, the Commission seeks comments on 
changes to ensure that Lifeline support is used to benefit qualifying 
low-income Americans consistent with section 254 of the 
Telecommunications Act of 1996 (the Act), through enhanced requirements 
to ensure that program participants are legal beneficiaries of Lifeline 
discounts, improved verification of household eligibility, an improved 
enrollment and transfer experience for households, predictable minimum 
service standards, ending the voice support phase-down, and preventing 
duplicative support. Second, the Commission seeks comments on rule 
changes that would optimize Lifeline program processes for integrity 
and efficiency, including reforms applicable to the states that have 
been permitted to opt out of using the NLAD and reduced reporting 
burdens for ETCs. Third, the Commission seeks comments on changes that 
would promote more principled service provider conduct, thereby 
increasing program integrity protections and ensuring that ETCs that 
participate in the Lifeline program comply with all rules. Finally, the 
Commission seeks comments on changes to the Lifeline rules to 
streamline them and minimize stakeholder confusion.

Ensuring Lifeline Services Are Used To Benefit Only Qualifying Low-
Income Americans Consistent With Section 254 of the Act

    The Lifeline program was established to help ensure that low-income 
Americans are able to receive affordable communications service. In 
this section, the Commission seeks comments on proposals to ensure that 
federal Lifeline benefits are only provided to the eligible recipients 
permitted by federal law, to improve verification of household 
eligibility, to ensure that consumers are enrolled with their preferred 
provider, and changes to minimum service standards and voice service 
phase-down. The Commission also seeks comments on additional program 
integrity improvements concerning duplicative support.

Ensuring Federal Dollars Go to Their Intended Recipients

    Today, all Lifeline program applicants must submit the last four 
digits of their SSNs to participate in the federal Lifeline program. 
This is a requirement designed to operate in a manner that limits the 
program to U.S. citizens and qualified aliens that have lawfully valid 
SSNs. However, there has been an increase in the number of SSNs 
illegally obtained or assigned in recent years, with more than 2 
million non-citizens illegally assigned SSNs in 2024 alone.
    Consistent with the goal of ensuring taxpayer-funded benefits are 
provided only to eligible recipients, the Commission seeks comments on 
several steps to safeguard the Lifeline program. The Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) 
is an important safeguard that protects federal funding by limiting 
support for federal programs to qualified aliens. The Commission 
tentatively concludes that Lifeline program support is a ``federal 
public benefit'' that is available only to U.S. citizens and immigrants 
with ``qualified alien'' status under the PRWORA, and the Commission 
seeks comments on this tentative conclusion. The Commission notes that 
the Lifeline benefit already is available only to citizens and 
qualified aliens, but the Commission seeks comments on other 
implications of a finding that Lifeline is a ``federal public 
benefit,'' including that ``qualified aliens'' would be subject to a 
five-year waiting period to participate in the Lifeline program if it 
is also determined to be a ``means-tested public benefit.''
    Section 401 of the PRWORA mandates that, ``[n]otwithstanding any 
other provision of law,'' outside certain narrow exceptions, ``an alien 
who is not

[[Page 16873]]

a qualified alien . . . is not eligible for any Federal public 
benefit.'' ``Qualified aliens'' are subject to additional eligibility 
requirements before they may receive benefits. For example, they may 
not obtain ``any Federal means-tested public benefit'' until they have 
been in the United States for five years with a qualified status. The 
definition of ``qualified alien'' includes persons with a number of 
immigration statuses allowing them to reside in the United States 
legally; it does not include individuals who are here illegally. The 
term ``financial means'' includes the ``income and resources'' of an 
alien's spouse or sponsor in its calculation of the alien's total 
assets.
    The PRWORA broadly defines a ``Federal public benefit'' to include: 
``(A) any grant, contract, loan, professional license, or commercial 
license provided by an agency of the United States or by appropriated 
funds of the United States; and (B) any retirement, welfare, health, 
disability, public or assisted housing, postsecondary education, food 
assistance, unemployment benefit, or any other similar benefit for 
which payments or assistance are provided to an individual, household, 
or family eligibility unit by an agency of the United States or by 
appropriated funds of the United States.'' The United States Department 
of Justice, Office of Legal Counsel (OLC) has explained that this 
definition of ``Federal public benefit'' bars non-qualified aliens from 
receiving ``[1] benefit[s] for which payments or assistance are 
provided to [2] an individual, household, or family eligibility unit by 
[3] an agency of the United States or by appropriated funds of the 
United States.''
    The PRWORA does not define the term ``Federal means-tested public 
benefit.'' Nevertheless, OLC instructs the best reading of this term 
means any federal public benefit for which the eligibility of an 
individual, household, or family eligibility unit for benefits, or the 
amount of such benefits, or both, are determined on the basis of the 
income, resources, or financial need of the individual, household, or 
unit--regardless of the funding sources for that federal public 
benefit.
    Applying OLC's guidance, the Commission tentatively concludes that 
Lifeline benefits constitute ``Federal public benefits'' and ``Federal 
means-tested public benefits'' for purposes of the PRWORA. As such, 
Lifeline is not available to non-qualified aliens and will only be 
available to qualified aliens on a means-tested basis. The Commission 
seeks comments on this assessment.
    The Commission tentatively concludes that Lifeline program 
reimbursements paid to service providers are nonetheless ``[1] 
benefit[s] for which payments or assistance are provided to [2] an 
individual, household, or family eligibility unit by [3] an agency of 
the United States or by appropriated funds of the United States.'' The 
PRWORA provides that benefits may include ``payments'' or 
``assistance.'' Thus, it is the Commission's current view that nothing 
in the PRWORA requires that payments be made directly to individuals 
for a program to qualify as a ``federal public benefit.'' In fact, some 
programs that have been determined to be ``federal public benefits'' 
under the PRWORA provide payments directly to third parties or other 
intermediaries on behalf of the beneficiary, including Section 8 
housing assistance paid directly to property owners and federal student 
assistance paid directly to educational institutions. The Commission 
seeks comments on what effect, if any, the fact that Lifeline program 
reimbursements are paid to service providers has on the applicability 
of the PRWORA.
    Does the fact that Lifeline benefits are already limited to 
citizens and qualified aliens affect the PRWORA analysis? Would a 
specific finding that Lifeline program support is a ``federal public 
benefit'' under the PRWORA further protect the program against the 
possibility of improper payments? If the Commission concludes that 
Lifeline program support is a ``federal public benefit'' under the 
PRWORA, would additional verifications beyond collection of the SSN be 
necessary to ensure compliance with the PRWORA? If so, what 
verifications would be needed?
    The Commission also seeks comments on its tentative conclusion that 
the Lifeline benefit qualifies as a ``means-tested public benefit'' 
under the PRWORA. As noted, the PRWORA does not define ``means-tested 
public benefit,'' so the Commission applies the guidance from OLC that 
a means-tested public benefit ``is best understood as any federal 
public benefit for which the eligibility of an individual, household, 
or family eligibility unit for benefits, or the amount of such 
benefits, or both, are determined on the basis of the income, 
resources, or financial need of the individual, household, or unit.'' 
The Lifeline program readily satisfies the plain meaning of this 
definition. Tentatively concluding that the program is a federal public 
benefit and eligibility plainly is determined based on, among other 
things, income, resources, and financial need, the Commission seeks 
comments on this analysis and whether there are other factors to be 
considered. Are there reasons not to consider OLC's interpretation of 
the term ``Federal means-tested public benefit'' controlling here and, 
if not, what standard should be applied? Under this definition or 
others, does the Lifeline program qualify as a means-tested public 
benefit? Does the Lifeline program fall within any of the ``Federal 
means-tested public benefits'' to which exemptions from the five-year 
waiting period apply? If the program is determined to be a ``Federal 
means-tested public benefit,'' should there be a transition period 
before the de-enrollment of subscribers who have not completed the 
five-year waiting period? If so, what would that transition period be?
    If the Lifeline benefit is a ``means-tested public benefit'' under 
the PRWORA, then with certain exceptions, qualified aliens would not be 
eligible for Lifeline program benefits until five years after entry in 
the United States as a qualified alien. The Commission seeks comments 
on the best way to determine whether five years have passed since a 
qualified alien's entry into the United States. Would resources from 
the Systematic Alien Verification for Entitlements (SAVE) program 
assist with these verifications? Are there other methods that could be 
used to confirm whether five years have passed since entry as a 
qualified alien into the United States?
    The Commission also seeks comments on whether its tentative 
conclusion that the Lifeline benefit is a Federal public benefit under 
the PRWORA implicates other existing statutory or regulatory 
obligations. For example, would such a holding suggest other statutory 
or regulatory obligations rest with the Commission, program providers, 
or Lifeline beneficiaries once Lifeline is determined to be a Federal 
public benefit? Similarly, the Commission asks the same question to the 
extent that it determines the Lifeline benefit is a ``means-tested 
public benefit'' under the PRWORA. Do Lifeline program eligibility 
requirements sufficiently account for spouse or immigration sponsor 
income and resources as required for ``means-tested public benefits'' 
for qualified aliens under the PRWORA? Would restrictions under the 
PRWORA apply only to the Lifeline applicant, or would they also apply 
to a benefit qualifying person, that is, a dependent whose enrollment 
in a government assistance program makes the applicant's household 
eligible for the Lifeline program, associated with the applicant?

[[Page 16874]]

    Finally, the Commission seeks comments on other potential changes 
regarding who should be eligible for Lifeline program support. Should 
eligibility for the Lifeline program be otherwise changed? Should the 
Commission adopt eligibility requirements in line with the Working 
Families Tax Cut Act's Medicaid eligibility requirements for non-
citizens, under which the only non-citizens eligible were certain 
lawfully admitted permanent residents, certain Cuban and Haitian 
entrants, or individuals lawfully residing in the U.S. in accordance 
with the Compact of Free Association? Are there other standards for 
Lifeline eligibility that the Commission should consider applying?
    The Commission seeks comments on additional measures that can be 
taken to enhance protections to ensure that program participants are 
qualified to receive Lifeline program discounts, including whether 
there are resources that can be used to combat waste, fraud and abuse.

Enhancing Identity Verification and Lawful Status of Applicants

    The Commission seeks comments on ways to enhance the integrity of 
the identity verification process for Lifeline program applicants, 
including potentially collecting the full nine-digit SSN from 
applicants and ensuring that the Commission takes advantage of all 
available resources to verify the identity and lawful status of 
Lifeline program applicants. Verifying an applicant's identity is an 
integral step to confirming eligibility.
    Full Social Security Number Verification. Currently, Lifeline 
applicants must provide the last four digits of their SSN (or Tribal 
Identification number, for those who lack a SSN and are a member of a 
Tribal nation) along with their full name, address, and date of birth 
for identity verification. The Commission seeks comments on whether to 
change the verification process to require the full nine digits of 
applicants' SSNs, rather than only the last four digits. What impact 
would this change have on the Lifeline program's goals of reducing 
waste, fraud, and abuse? Is collecting the full SSN necessary for 
identity verifications? What should be considered when balancing such 
potential reductions in waste, fraud, and abuse against the increased 
privacy and security considerations (including any increased security 
costs) of collecting and protecting full SSNs? Would this change bring 
Lifeline into greater or lesser alignment with similar programs, 
including those that can form the basis for eligibility for Lifeline, 
and what impact would the change have on administrative efficiencies 
and cross-agency data matching? What other programs require the full 
SSN? Are there deficiencies in verifying identity based on name, 
address, date of birth, and last four digits of the SSN that would be 
cured by collecting the full SSN; are there alternatives to collecting 
the full SSN that would address those deficiencies that present fewer 
privacy concerns? For example, should a four digit SSN be collected 
from all subscribers and a full SSN only be collected if USAC is unable 
to confirm the applicant's identity with the four digit SSN? Have any 
other such programs undergone a change from requiring four to nine 
digits of applicant SSNs, and what lessons can be learned from those 
transitions? What legal considerations would impact this potential 
collection of full SSNs? The Federal Information Security Modernization 
Act (coupled with the specific requirements of NIST 800-53), the E-
Government Act of 2002, and related OMB guidance and Executive Orders 
related to those two acts address processes for protecting highly-
sensitive, personally identifiable information such as full SSNs; are 
there other federal laws or guidance that should be considered in 
collecting full SSNs? As these laws already apply to the collection and 
use of partial SSNs, what impact would they have on the collection of a 
full SSN?
    The Commission also seeks comments from Lifeline providers on 
compliance with this potential collection and enhanced security 
measures needed to safeguard consumer data. How much time should be 
provided to carriers to come into compliance with the changed 
requirement? Would carriers need to collect and store SSNs and if so, 
why? Should carriers be allowed to enroll subscribers using enrollment 
representatives' devices? What information or documents are retained by 
the representative or the marketing company if that means that these 
entities and persons (who may be unknown to the government) may be left 
with even more personally identifiable information (PII) of the 
enrollees? What can the Commission do so that providers and their 
agents do not retain and illegally use applicants' PII? Are there other 
ways that full SSNs could be used or checked that would not require 
carriers to collect and store that information, including some form of 
a verifier program? What security standards, if any, should the 
Commission impose on carriers or others collecting full SSNs to ensure 
SSNs are appropriately protected? In addition, the Commission seeks 
comments on the impact of this potential change on Lifeline applicants, 
including whether there are any groups that may be disproportionately 
affected. What are the costs in terms of applicant privacy and security 
considerations compared to the current practice of requiring the last 
four digits of the applicant's SSN? Are there special privacy concerns 
unique to Lifeline applicants that need to be considered? What might be 
the impact on customer enrollment in Lifeline due to potential 
applicant reluctance to provide full SSNs? Are there any additional 
costs, benefits, or legal issues the Commission should consider before 
also applying the full SSN requirement, as described, to individuals 
applying for Tribal Link Up or Lifeline emergency support for survivors 
of domestic violence? How are these potential concerns weighed against 
the potential benefits to program integrity and safeguarding public 
funds?
    Resources for Verification of Identity and Lawful Status. To ensure 
that identity verifications are as thorough as possible, and to ensure 
that applicants satisfy the FCC's eligibility criteria, the Commission 
proposes requiring USAC to use the SAVE program to conduct sufficiently 
thorough identity verifications to ensure that the Lifeline program has 
the most up to date and valid information on the identity of potential 
Lifeline subscribers and seeks comment on this approach.
    The Commission also seeks comments on other resources available to 
conduct identity verifications of Lifeline program applicants, 
including the U.S. Department of Treasury's Do Not Pay system and other 
available federal government resources. How does the accuracy of 
identity verifications under federal government resources compare to 
identity verifications using commercial databases? The Commission seeks 
comments on the cost-effectiveness of these resources and whether 
benefits of using them outweigh the potential costs to USF. How would 
administrative costs to implement these programs compare with costs to 
use commercial services?
    Are there data points other than the applicant's name, address, 
date of birth and SSN (or Tribal identification number for Tribal 
applicants that lack an SSN) that should be collected to facilitate 
identity verifications? Could collecting the alien registration number, 
arrival/departure record number, or naturalization/citizenship 
certificate number facilitate identity verifications for certain 
immigrants?

[[Page 16875]]

Consumer Choice During Enrollment and Transfer

    The Commission proposes changes to enhance the Lifeline program's 
requirements regarding consumer consent for enrollment and transfers to 
a different service provider and seeks comment on other ways to protect 
consumers and prevent fraud during the transfer process.
    Consent requirements. The Commission proposes to require secondary 
verification of a consumer's consent to enroll in the Lifeline program 
or transfer to a new service provider and seeks comment on other ways 
that the Commission can protect consumers in the enrollment and 
transfer processes, such as specifying the methods by which consumers 
can provide consent. In the Lifeline program, providers are required to 
obtain consumer consent prior to submitting a subscriber's personal 
information to the NLAD when enrolling or transferring the subscriber. 
When enrolling a prospective subscriber, ETCs must provide prospective 
subscribers with an eligibility certification form that, in part, 
requires each prospective subscriber to initial his or her 
acknowledgement of certain certifications. For example, prospective 
subscribers must certify that they meet the income-based or program-
based eligibility criteria for receiving Lifeline, that the subscriber 
will notify the carrier if for any reason he or she no longer satisfies 
the criteria for receiving Lifeline, and the subscriber acknowledges 
that providing false or fraudulent information to receive Lifeline 
benefits is punishable by law.
    The Commission proposes to require a secondary verification of 
consent, that is, confirmation of consent via a method separate from 
the application or transfer request, from a consumer before an 
enrollment or transfer is effectuated. Current rules for enrollment 
require providers to obtain completed application certification forms 
from subscribers. Current procedures for benefit transfers require 
providers to obtain a new, completed application form; review proof of 
eligibility; and send the subscriber either a paper or electronic 
consent request. The FCC OIG recommended that the Commission require 
households to independently verify their new enrollment or transfer 
requests through an affirmative response to a text or email in the 
FCC's temporary Affordable Connectivity Program (ACP) and Emergency 
Broadband Benefit (EBB) program. FCC OIG investigations have shown that 
too many consumers were enrolled in the Commission's affordability 
programs without their knowledge or consent and without receiving 
service. The enrollment of consumers who do not actually receive 
services wastes limited universal service funds, and a transfer to a 
new ETC without the consumer's consent violates principles of consumer 
choice.
    The Commission seeks comments on whether the Commission should 
require households to independently verify their new enrollment and 
transfer requests through an affirmative response to a text or email. 
Would secondary verification of consent better protect consumers 
against enrollments or transfers against their will? What privacy 
considerations would be germane to requiring secondary verifications of 
consent?
    The Commission also seeks comments on processes for secondary 
verifications of consent. Should USAC contact the consumer to confirm 
that the consumer consented to the enrollment or transfer before an 
enrollment or transfer is effectuated in the NLAD? In the alternative, 
should the ETC contact the consumer and maintain records of the 
secondary verification? What safeguards should be established to 
prevent excessive outreach to consumers about enrollments and 
transfers? What method(s) should be used for such a verification--text 
message, email, physical address or another method? What effect would 
requiring a form of secondary verification have on providers and 
consumers, including the effect, if any, on survivors of domestic abuse 
seeking to switch between participating providers? How would a 
secondary verification requirement impact subscribers who do not yet 
have a device or stable connection to respond to verification texts or 
emails? Should such applicants be permitted to provide a secondary 
verification after their service has been activated?
    As to initial consent to enroll or transfer, the Commission seeks 
comments on whether Commission rules should specify the method by which 
consumers convey their initial consent to enroll or transfer a 
consumer. ETCs are currently responsible for obtaining consent for an 
enrollment or transfer and providing USAC with evidence of the consent 
upon request. When enrolling a prospective subscriber, ETCs must 
provide prospective subscribers with an eligibility certification form 
that, in part, requires each prospective subscriber to initial his or 
her acknowledgement of certain certifications. For example, prospective 
subscribers must certify that they meet the income-based or program-
based eligibility criteria for receiving Lifeline, that the subscriber 
will notify the carrier if for any reason he or she no longer satisfies 
the criteria for receiving Lifeline, and the subscriber acknowledges 
that providing false or fraudulent information to receive Lifeline 
benefits is punishable by law. Should the Commission require providers 
to submit evidence of consumer consent for each transfer transaction to 
USAC? If so, what evidence would ensure or demonstrate consensual 
enrollments and transfers? If providers are required to submit evidence 
of consumer consent for each transfer transaction, what burdens and 
administrative costs would this present? Is there a way to minimize 
such burdens--e.g., have providers submit consumer consent data in the 
NLAD to be reviewed on a sample basis according to certain criteria? 
How should such submission of evidence take place?
    There is currently no standard language used to obtain consent for 
transfers to a new ETC from a consumer. How can the Commission ensure 
that it is the enrolled subscribers who provide consent? With the 
emergence of Artificial Intelligence (AI), how can the Commission 
better protect the program from new types of identity theft and 
identity fraud? Would a standardized language requirement better enable 
the Commission to enforce the consent rules? What are some best 
practices from other types of federal benefit programs that could be 
utilized in the Lifeline program to obtain enrollment or transfer 
consent? Should specific consent be required for changes to devices, 
telephone numbers, email and residential addresses or other items? 
Finally, the Commission seeks comments on whether to implement 
requirements that providers input a consent timestamp in the NLAD when 
enrolling or transferring a subscriber. Would this enhancement prevent 
improper consumer transfers by ensuring the most recent consent from 
the consumer was properly documented? The Commission also seeks 
comments on best practices for encouraging providers to properly notify 
consumers of their privacy policies and on how best to handle personal 
information.
    National Verifier eligibility verification expiration. Currently, 
an applicant that is qualified as eligible by the National Verifier 
will have 90 days from when they are qualified to enroll with an ETC. 
The Commission seeks comments on whether to shorten the period for 
which the qualified eligibility result can be used to enroll with an 
ETC. Will shortening the period from 90 days help to guard against 
waste, fraud, and abuse? Are 30 days or 60 days from

[[Page 16876]]

a qualified result sufficient time for an applicant to enroll with an 
ETC?
    Transfer Prohibitions. The Commission seeks comments on how 
significant of an issue unwanted transfers are for Lifeline consumers 
today and whether it is necessary to impose additional restrictions on 
transfers in the Lifeline program. Currently, under the Commission's 
Lifeline rules, subscribers are able to transfer their Lifeline-
supported service from one ETC to another with few restrictions. To 
accomplish a benefit transfer, the initiating ETC must obtain the 
affirmative consent of the subscriber to transfer the Lifeline benefit 
prior to the initiation of the transfer in the NLAD. When an ETC 
initiates a transfer in the NLAD, the system automatically transfers 
the subscriber out of the old ETC's database and into the new ETC's 
database.
    In the event additional restrictions on transfers are warranted, 
the Commission seeks comments on applying the one transfer per calendar 
month limitation adopted for the ACP to the Lifeline program. Should 
the limitation be modified, and if so, what modifications should be 
made? How would freezing the ability to transfer for a specified 
period, such as 60 or 90 days after enrollment, limit consumer choice? 
Are there lessons from the Commission's codification and subsequent 
elimination of port freezes in Lifeline to be considered? Would 
eliminating the transfer framework altogether and instead requiring a 
subscriber who wants to change ETCs to de-enroll and re-apply reduce 
incidents of transfer issues and/or produce other benefits? The 
Commission seeks comments on whether transfer-related rules should be 
applied differently to fixed providers versus mobile providers, and if 
so, how.
    Finally, the Commission seeks comments on number portability issues 
arising from the benefit transfer process in Lifeline. Are there 
currently concerns associated with benefit transfers where service 
providers fail to port subscriber phone numbers to newly identified 
service providers in a manner consistent with the Commission's rules? 
Should there be additional requirements or certain penalties for 
providers that fail to port consumers' numbers in connection with 
Lifeline service?
    Disclosure language. The Commission seeks comments on whether to 
require ETCs to make additional disclosures to consumers before 
enrolling or transferring them. Although the Lifeline program does not 
have extensive disclosure requirements, all materials describing the 
service must clarify, in easily understood language, that it is a 
Lifeline service, that Lifeline is a federal assistance program, that 
the benefits are non-transferable to another individual, that only 
eligible consumers may enroll, and that the program benefit is limited 
to one discount per household. The Commission seeks comments on the 
value of providing new or adjusted disclosures to consumers at the time 
of enrollment or transfer, as well as the burden, if any, on providers.

Workable Minimum Service Standards

    The Commission next inquires whether any changes are needed to 
ensure a workable framework for minimum service standards in the 
Lifeline program. In the 2016 Lifeline Report and Order (FCC 16-38) 
published at 81 FR 33026, May 24, 2016, the Commission established 
Lifeline minimum service standards with the goal of ensuring that the 
service available to Lifeline subscribers was adequate to meet modern 
needs. The Commission concluded that creating minimum service standards 
furthered the Commission's statutory principle of ensuring that low-
income Americans have access to quality services, particularly those 
``subscribed to by a substantial majority of residential customers,'' 
at ``just, reasonable, and affordable rates.'' The Commission further 
determined that ``[b]ecause technology develops at a rapid pace, any 
minimum standards [the Commission] set[s] would quickly become outdated 
without a timely updating mechanism,'' and thus established formulas to 
update these standards on an annual basis. The Commission established 
minimum service standards and update mechanisms for fixed broadband 
data usage allowance, fixed broadband speed, mobile broadband data 
usage allowance, mobile broadband speed, and mobile voice minutes 
allowance in the 2016 Lifeline Report and Order and instructed WCB to 
annually publish updated standards on or before July 31, becoming 
effective on December 1 of that year. The Commission now seeks comments 
on the minimum service standards and any update mechanisms.
    To better inform decisions in this area, the Commission seeks 
comment on the low-income communications market more broadly and how 
increased minimum service standards would alter it. Do any existing 
Lifeline providers offer free-to-the-subscriber service that is more 
robust than the minimum service standards? Do any existing Lifeline 
providers offer any other benefits beyond talk, text, and data that 
meet the minimum service standards? If providers offer additional 
benefits, are they able to do so on the current subsidy level? What 
effect could increase minimum service standards have on the market for 
low-income communications service and on the number of providers who 
offer Lifeline? What would be the effect if the Commission raised 
minimum service standards to the point that providers are no longer 
able to provide service without requiring a payment from customers? How 
would this affect existing Lifeline subscribers or eligible households 
who are not enrolled but are considering participating in the program? 
Should minimum service standards be static or adjusted periodically? 
Have service providers explored options to support the need for 
increased usage allowances for Lifeline subscribers who are deaf, hard 
of hearing, or have a speech disability and rely on video connection 
for Video Relay Services and point-to-point calls and other bandwidth-
intensive accessibility functions? What role, if any, could AI tools 
play in establishing minimum service standards?
    Mobile broadband data capacity. The current mobile broadband usage 
allowance minimum service standard is 4.5 GB per month. In the 2016 
Lifeline Report and Order, the Commission established an initial 
minimum service standard schedule, setting a 500 MB per month standard 
beginning on December 1, 2016 that ramped up to 2 GB per month on 
December 1, 2018 before switching to annual updates determined by 
formulas and communications market data on December 1, 2019. The rules 
provided that one formula should be used if broadband data was 
published in the past 18 months, and another should be used if it was 
not.
    However, minimum service standards based on either of the 2016 
Lifeline Report and Order's annual mobile broadband data usage 
allowance formulas have never been implemented. Instead, the Commission 
or WCB issued partial waivers of the Commission's rules on updating the 
mobile broadband data usage minimum service standard in 2019, 2020, 
2021, 2022, 2023, 2024, and 2025 concluding that strict application of 
the Commission's rules would not have been consistent with the public 
interest. In each waiver order, it was noted that the automatic 
formula, if not waived, would produce minimum mobile broadband data 
capacity amounts larger than the amounts likely contemplated when the 
2016 Lifeline Report and Order was adopted and could result in price 
increases that make Lifeline service unaffordable, even after factoring 
in Lifeline support, or could otherwise disrupt the low-income

[[Page 16877]]

broadband market. Using the formula prescribed by the Commission's 
rules would have ``risk[ed] upsetting the careful balance [of service 
quality and affordability] the Commission struck when establishing the 
Lifeline minimum service standards in the 2016 Order.'' The mobile 
broadband data capacity standard was increased in 2019 and 2020, at 
pre-set, more modest amounts than the default level the formula would 
have set, increasing it to 3 GB rather than 8.75 GB in 2019 and 4.5 GB 
rather than 11.75 GB in 2020. WCB paused the most recent scheduled 
mobile data usage allowance update, which would have increased the 
standard more than sixfold to 29 GB on December 1, 2025, nearly double 
the average monthly consumption amount of all smartphone users.
    The Commission tentatively concludes to revise or eliminate the 
existing mobile broadband usage allowance update rule. The Delete, 
Delete, Delete Public Notice (DA 25-219 released March 12, 2025) 
suggests that rules that have been repeatedly waived or that generate 
unexpected or highly varied benefit and burden outcomes are rules 
likely to be ill-suited to their purpose and therefore in need of 
revision or deletion. The mobile broadband usage allowance update rule 
meets this standard. Why has the existing mechanism produced results 
that are so far out of step with actual data usage? How should the 
Commission update this standard moving forward? How should a new update 
mechanism operate? Assuming the 4.5 GB minimum service standard for 
data allowance should be adjusted, what would the ideal standard be 
when a new formula goes into effect? Should minimum service standards 
reflect the broadband needs of an individual or the needs of a 
household, assuming that the household would share the device for 
mobile broadband use?
    The Commission requests comment on a new approach that could be 
used to adjust the minimum service standard. What formula should the 
Commission or WCB use to determine the minimum service standards? 
Should minimum service standards be a static amount or updated at a 
regular cadence? If the minimum service standards increase, should the 
standard increase by a set amount or a variable amount based on 
marketplace and demographic data? For example, should minimum service 
standards be tied to a measure of mobile data usage like average mobile 
data usage in the U.S. or should it be tied to some other measure like 
the federal poverty level or an inflation measure? How are the costs of 
increased minimum service standards actually borne by providers--do 
providers actually purchase the capacity necessary to support the 
maximum allowance for each subscriber, or do they purchase the actual 
capacity or the estimated capacity needed understanding that some 
subscribers do not approach the maximum data capacity their plan 
allows?
    The Commission also seeks comments on the data sources to be used 
to support any updated formula that is used to determine mobile 
broadband minimum service standards. Should the Commission continue to 
exclusively rely on the same data sources (i.e., the U.S. Census and 
Communications Marketplace Report) but alter the formulas? What are the 
third-party data sources that can be used to support a formula for 
updated minimum service standards? If the Commission chooses to adopt a 
new formula for predictable increases, how would the timing of 
publications data sources be considered? Should the Commission use 
onetime snapshots of the marketplace or data usage to inform minimum 
service standards? Is there information available on mobile phone plan 
offerings that the Commission can use? Can commenters provide 
information on mobile phone plan offerings? How should the Commission 
utilize any data about available plan offerings to inform its decision 
on minimum service standards? If the Commission were to use this data 
in an analysis, how should staff account for differences between plan 
features like hotspot data, speeds, data thresholds, and congestion 
throttling? Should the Commission rely on the data it collected on 
usage and costs from the 2021 Lifeline Marketplace Report, published 
June 2021 (<a href="https://docs.fcc.gov/public/attachments/DOC-373779A1.pdf">https://docs.fcc.gov/public/attachments/DOC-373779A1.pdf</a>) 
even though the data collection was limited to nine providers? Should 
the Commission use data from the Urban Rate Survey or other sources?
    The Commission seeks to understand how changes in the minimum 
service standards may impact the Lifeline marketplace and whether 
changes in minimum service standards would impact provider 
participation. How would minimum service standard changes impact 
provider ability to offer no cost to the consumer plans and at what 
data usage allowance? If providers that currently offer service at no 
cost to the consumer were to increase prices, at what price point do 
low-income Americans choose not to subscribe to Lifeline service?
    Mobile broadband speeds. Updates to the mobile broadband speed 
minimum service standard are subject to WCB discretion, with 
instructions to alter it only ``if the [WCB] determines that it ought 
to be adjusted after determining that, based on Form 477 data or other 
relevant sources, the `substantial majority' principle is best 
satisfied by an adjusted speed standard.'' The Commission reasoned in 
the 2016 Lifeline Report and Order that ``the minimum service standards 
for mobile broadband speeds may not need to be updated as frequently as 
the mobile data usage allowance standard given the pace at which new 
mobile technology generations are deployed.'' WCB has never updated the 
standard. The current minimum service standard for mobile services 
speed is 3G.
    The Commission seeks comments on the existing mobile broadband 
speed minimum service standard and whether it should be revised and 
whether WCB should retain discretion to increase mobile broadband speed 
minimum service standards. One argument against making changes at this 
stage is that current market conditions do not necessarily indicate a 
need to increase the standard. It is the Commission's understanding 
that mobile broadband Lifeline subscribers often receive 4G LTE or 5G 
service and that some providers have phased out providing 3G service 
entirely, but in some areas, particularly rural ones, 3G remains the 
fastest mobile service available at any price point. Does this meet the 
Commission's obligation under section 254(b)(1) and (3) of the Act, 
which requires the Commission to base policies on ensuring affordable 
rates and the availability of reasonably comparable services? The 
Commission seeks comments on these conclusions.
    Fixed broadband data. Section 54.408(c)(1)(ii) of the Commission's 
rules states that the fixed broadband usage allowance minimum service 
standard shall be the greater of ``[a]n amount the Wireline Competition 
Bureau deems appropriate, based on what a substantial majority of 
American consumers already subscribe to'' or ``[t]he minimum standard 
for data usage allowance for rate-of-return fixed broadband providers 
set in the Connect America Fund.'' The Commission expressed the 
``belie[f] that 70 percent of consumers constitutes a ``substantial 
majority'' in the context of fixed broadband speeds.'' WCB has used 
this appropriateness standard every year this increase mechanism has 
been in effect and has never waived the increase or used the alternate 
Connect America Fund standard. This resulted in a 1280 GB per month 
standard in the most recent adjustment.

[[Page 16878]]

    In 2016, the year the fixed broadband data usage allowance standard 
was enacted, 52% of fixed broadband plans allowed for unlimited data. 
This figure rose to 75% in 2024. While WCB has considerable latitude 
under the appropriateness standard to set the fixed broadband data 
usage allowance, it is difficult to argue that the ``substantial 
majority'' of consumers does not already or will not soon subscribe to 
an unlimited data offering. For this reason, the Commission tentatively 
concludes that it should provide additional clarification regarding 
revisions to the fixed broadband data usage allowance minimum service 
standard. While it is not fiscally responsible to have an unlimited 
fixed broadband usage allowance minimum service standard, are ETCs 
amenable to providing unlimited fixed broadband data to Lifeline 
subscribers at an affordable price? What would the price of unlimited 
fixed broadband data be after the Lifeline benefit is applied? Should 
an appropriateness standard be retained if it is no longer based on 
what a ``substantial majority'' of consumers subscribe to? Would an 
appropriateness standard that excludes unlimited data from the 
substantial majority consideration sufficiently improve the formula? If 
not, what alternate formula should be used to adjust the fixed 
broadband data allowance minimum service standard? Is the current 1280 
GB standard sufficient? Note that even after the Lifeline benefit is 
applied, many fixed broadband plans require a substantial monthly fee.
    Fixed broadband speed. Per Commission rules, WCB sets the fixed 
broadband speed minimum service standard at the 30th percentile of 
subscribed broadband speeds. However, if WCB does not publish the 
minimum service standard on or before July 31, the minimum service 
standard for the upcoming year will be the greater of the current 
minimum service standard or the Connect America Fund speed standard for 
rate-of-return fixed broadband providers (WCB has used the Connect 
America Fund Broadband Loop Support speed, which is currently 25/3 
Mbps). To maintain the minimum service standard at its current level, 
25/3 Mbps, after increasing it in 2020, 2019, 2018, and 2017 from the 
initial 10/1 Mbps standard, WCB has not published a new calculated 
fixed broadband speed minimum service standard since 2020, instead 
relying on its ability to rely on the greater of the current standard 
or the Connect America Fund standard.
    The Commission is not inclined to alter the fixed broadband speed 
minimum service standard or its update mechanism. Fixed broadband 
subscriptions make up a small percentage of the Lifeline program and 
already tend to require an end-user fee. Fixed broadband speeds at or 
above 25/3 Mbps may be unavailable from Lifeline ETCs in some rural 
areas. The current mechanism allows for flexibility in whether to 
increase it in light of these factors, while retaining a floor 
preventing the minimum service standard from falling below the Connect 
America Fund standard, an important baseline for rural service 
performance. Raising the standard higher and regularly increasing it 
could leave large portions of the country without Lifeline service that 
meets this standard and increase prices to prohibitive rates in areas 
where qualifying service is available, thus effectively leaving many 
Lifeline consumers without a viable option for fixed broadband. The 
Commission seeks comments on these conclusions. The Commission's rules 
contemplate an exception from the minimum service standards for certain 
fixed service providers who do not offer any service in an area that 
meets the Commission's minimum service standards. Should this exception 
be changed or eliminated, and if so, why and how? Are there ways that 
the Commission can better understand consumer usage of fixed services 
supported by the Lifeline program and how these differ from mobile 
uses? Are there existing resources documenting such usage, or can 
service providers readily share that information with the Commission?

Support for Consumers Reliant on Voice Services

    The Commission seeks comments on whether to maintain support for 
voice-only services in the Lifeline program and whether changes to the 
ongoing phase-down of support for voice service are necessary. In the 
2016 Lifeline Report and Order, the Commission enacted a rule to 
gradually phase out Lifeline support for voice-only service. The 
Commission reasoned that focusing Lifeline on broadband service, which 
has become more vital to current communications needs than voice 
service, best fulfills its section 254 ``responsibility to be a prudent 
guardian of the public's resources,'' under the Act. The Commission 
noted, however, that ``consumer migration to new technologies is not 
always uniform, and certain measures to continue addressing the 
affordability of voice service may be appropriate.''
    In accordance with the 2016 Lifeline Report and Order, WCB carried 
out the first step of the phase-down in Lifeline support for voice-only 
services on December 1, 2019, when it allowed support to reduce from 
$9.25 to $7.25. The second step occurred on December 1, 2020, from 
$7.25 to $5.25. The 2016 Report and Order scheduled a complete phase-
out of Lifeline support for voice-only services on December 1, 2021, 
when support for such services was to be eliminated in most areas. WCB, 
however, has issued one-year waiver extensions every year since to 
pause the phase-out of voice-only service. The most recent temporary 
waiver is currently in effect and ends on December 1, 2026. Reasons for 
the waivers have included the minority of Lifeline subscribers that 
continue to subscribe to voice-only services, the heightened reliance 
on voice service during the COVID-19 pandemic, the existence of 
alternative low-income broadband benefit programs, the potential harm 
from subscribers' lack of access to emergency services hotlines, the 
fact that bundled services may not be fully utilized, and maintaining 
service until the Commission determines whether to implement Commission 
report recommendations and deregulatory Commission priorities.
    The Commission seeks comments on whether to maintain support for 
voice-only service at the current $5.25 amount. There are still more 
than 160,000 subscribers to Lifeline voice-only or bundled plans that 
do not meet the broadband minimum service standards, though this figure 
is slowly but regularly decreasing. How vital is voice service to 
consumers' ability to access public safety resources or to participate 
in today's society? Does broadband service fulfill all the needs that 
voice service does? How would ending support for voice-only services 
affect accessibility for certain individuals with disabilities? Should 
the Commission continue on the path toward ending Lifeline support for 
voice-only service, but at a later date? Should the Commission 
establish a metric that would trigger the phaseout of voice-only 
support, such as when under a certain percentage of Lifeline 
subscribers apply their benefit to voice-only service? If so, which 
metric would be the most reliable method of assessing the need for 
voice-only services? Can voice-only Lifeline subscribers find 
alternative, affordable voice-only service? Will these subscribers 
transition to qualifying bundled plans or stop subscribing to 
communications service altogether? Would subscribers that switch to 
bundled plans use their broadband component? How does

[[Page 16879]]

offering a cheaper alternative to the $9.25 standard broadband support 
amount affect the contribution factor?
    Finally, the Commission seeks comments on ancillary rule or 
guidance changes to support changes to the existing minimum service 
standards and their adjustment mechanisms proposed here and by 
commenters.

Preventing Duplicative Support

    The Commission seeks comments on whether changes to the one-per-
household rule are necessary or warranted to achieve program goals and 
minimize waste, fraud, and abuse. Currently the Commission's rules 
limit Lifeline service to one Lifeline discount per household. However, 
based on the definition of household, there can be multiple households 
within a single residence or address if they do not share income and 
expenses, such as at group living facilities. A household already 
receiving a Lifeline discount is therefore ineligible to receive an 
additional Lifeline discount and ETCs must not seek reimbursement for 
such duplicative discounts. In order to better enforce the one-per-
household rule and help prevent duplicative support, the Commission 
established the National Verifier and the NLAD, which were fully 
launched and implemented by 2020. In addition, in February 2018, the 
Commission announced the availability of the Independent Economic 
Household Worksheet, which subscribers were required to complete 
beginning on July 1, 2018, certifying compliance with the one-per-
household rule in the event a subscriber shared an address with one or 
more additional Lifeline subscribers. Although these mechanisms help 
facilitate eligibility determinations in accordance with the one-per-
household rule, the ultimate responsibility to ensure compliance with 
the rule remains with ETCs. In December 2019, the Enforcement Bureau 
emphasized that ``[n]either the NLAD nor the National Verifier creates 
a `safe harbor' that relieves ETCs of their responsibility for only 
claiming Lifeline consumers who are actually eligible for the program 
under the Commission's rules.'' Instead, ETCs ``remain fully liable if 
they provide false, misleading, or fraudulent information'' and if they 
provide duplicate Lifeline discounts.
    Recently, a commenter noted that ETCs are unable to see how many 
households are enrolled in Lifeline with other ETCs at a single 
address. Lifeline rules require ETCs to query the NLAD to determine 
whether a household is already receiving a Lifeline service. However, 
the NLAD does not identify for ETCs the number of discounts provided by 
other ETCs at an address. This shortcoming may, in some instances, make 
it so an ETC cannot implement a reasonable system for preventing 
duplicate discounts. The Commission seeks comments on whether USAC 
should change the functionality of the NLAD to allow any ETC to see the 
total number of discounts provided (across all ETCs) at a single 
address. How could USAC prevent providers from using this information 
inappropriately? Should USAC update this information in real time, each 
month, at annual recertification, or at some other interval? Should 
ETCs be required to check for this information only at initial 
enrollment, each month, at annual recertification, or at some other 
interval? Should USAC treat addresses it identifies as non-residential 
differently? If so, how? What, if any, additional information is needed 
for ETCs to implement a reasonable system for preventing duplicate 
discounts? What are the costs and benefits of making this information 
available and requiring ETCs to query the database for it? Would the 
changes described to the NLAD also require changes to Lifeline rules? 
What other internal controls could the Commission or USAC adopt to 
prevent duplicative support? Could AI tools help USAC identity 
instances of duplicative support?
    The Commission also seeks comments on whether to revisit the one-
per-household rule. Should the Commission revise its rule to make it a 
one-per-residence rule? If the Commission moved to a one-per-residence 
rule, how should instances be handled where more than one household 
receiving Lifeline benefits currently resides at the same address--for 
example, should such current Lifeline beneficiaries be allowed to keep 
their discount, despite the rule change? For new applicants, how should 
multiple households applying for Lifeline at the same residence be 
handled--for example, should the Commission provide benefits to the 
first applicant to enter an approved application into the NLAD? What 
dispute resolution processes does the Commission need to have in place 
if such a rule change were made?
    Alternatively, should the Commission adopt a cap on the number of 
households who receive discounts at a particular address (and if so, 
should this cap differ for non-residential addresses)? Should the 
Commission make any one-per-residence limit or larger cap on the number 
of households at an address a rebuttable presumption, and if so, what 
types of evidence should be considered to rebut that presumption? 
Should the Commission redefine an independent economic household, and 
if so, how should it be redefined? Have circumstances changed since the 
Commission last considered whether to keep the one-per-household rule 
in 2012? What would be the likely effect of different approaches on the 
cost of the Lifeline program, its ability to serve low-income 
individuals and households, and the Universal Service Fund contribution 
factor? How often have commenters found that subscribers were 
wrongfully rejected as receiving duplicate discounts? How often do 
commenters estimate that duplicate Lifeline support has been improperly 
granted under the current system? Would program integrity and low-
income household needs be better served by focusing on tracking usage 
requirements rather than duplicates? If so, why?
    In addition, the Commission proposes to codify the rule, 
established over a decade ago, that in addition to querying the NLAD 
for duplicate discounts at a single residence an ``ETC must also search 
its own internal records to ensure that it does not already provide 
Lifeline-supported service to someone at that residential address.'' 
The Commission proposes codifying the rule in Sec.  54.410(a) of the 
Commission's rules, because this internal check is one example of a 
policy and procedure ETCs must implement ``for ensuring that their 
Lifeline subscribers are eligible to receive Lifeline services.'' 
Commission codification of the rule is not intended to suggest that 
this requirement was not already in force. Nor is the codification 
intended to suggest that every specific policy and procedure required 
by Commission rule Sec.  54.410(a) must be explicitly cited in that 
rule in order to apply to ETCs. The standard for such internal policies 
and procedures is that they must at least encompass a ``reasonable 
system for preventing duplicates'' or other violations of Lifeline 
rules, under the totality of the circumstances.

Optimizing Lifeline Program Processes for Integrity and Efficiency

    The Commission seeks comments on whether to undertake additional 
changes to optimize Lifeline program processes, including whether the 
Lifeline program should continue to permit different eligibility 
verification processes for NLAD opt-out states and whether to 
streamline the annual reporting forms for ETCs.

Opt-Out State Reforms

    The Commission seeks comments on whether to continue to permit the 
Lifeline program ``opt-out'' states to

[[Page 16880]]

utilize their own program integrity processes different from federal 
processes. When the Commission implemented the NLAD to help prevent 
consumers from receiving duplicative Lifeline support, it allowed 
states to opt out of using the NLAD if they had their own systems to 
check for duplicative Lifeline support that were at least as robust as 
the NLAD and covered all ETCs operating in the state and their 
subscribers. After the launch of the National Verifier, WCB elected to 
allow the National Verifier to rely on state processes to facilitate 
eligibility determinations in NLAD opt-out states. Although the 
National Verifier has been deployed in all states and territories, in 
Lifeline it operates differently in Texas and Oregon, which are ``NLAD 
opt-out'' states. In those states, the state public utility 
commissions, or their administrators, facilitate verification of a 
consumer's eligibility to participate in Lifeline. With respect to the 
opt-out states, USAC uses state Lifeline subscriber files to populate 
the NLAD. In partnership with these states, USAC also samples state 
eligibility information and documentation to assess whether that state 
eligibility determinations are made in accordance with Commission 
rules. In contrast, under the ACP, the Commission did not permit states 
to opt out of the NLAD or take a modified approach to use of the 
National Verifier.
    The Commission has concerns that the current approach, which allows 
opt-out states to conduct their own verification processes, creates 
greater opportunities for waste, fraud, and abuse in the Lifeline 
program. For example, WCB recently revoked California's opt-out status 
because, among other things, recent changes to California state law no 
longer requiring applicants to submit SSNs for verification purposes 
impaired the efficacy of California's eligibility verification, 
duplicate detection, and identify theft prevention procedures. More 
broadly, FCC OIG recently found that providers across opt-out states 
received nearly $5 million in Lifeline reimbursements for deceased 
individuals across five years. The Commission seeks comments on whether 
the Lifeline program should continue to permit different eligibility 
verification processes for NLAD opt-out states and whether the 
experience in opt-out states has demonstrated that allowing for 
alternative systems provides net benefits to states, providers, 
consumers, and the Lifeline program in general.
    The Commission seeks comments on whether states and ETCs have found 
that state alternatives were more or less efficient or confusing than 
the federal system. What are some examples or insights that demonstrate 
the efficiency or inefficiency of state-specific Lifeline verification 
processes compared to the federal system? In particular, have ETCs 
working in both NLAD states and opt-out states found it difficult to 
navigate the different systems or receive accurate and timely 
reimbursements? Are there benefits to having uniform Lifeline 
eligibility verification and duplicate checking processes nationwide? 
Are there any differences in eligibility verification accuracy between 
the processes in NLAD opt-out states and the typical National Verifier 
eligibility verification process? Do NLAD opt-out states and states 
with a modified National Verifier approach that relies on state 
eligibility determinations adhere to requirements that their processes 
be as robust as federal processes and that state eligibility 
determinations meet the objectives of the National Verifier? Would 
moving to a single administrator system that covers all states address 
the concerns underlying FCC OIG recommendations for greater 
coordination between USAC and opt-out states and for opt-out states to 
maintain databases similar to the Representative Accountability 
Database? What are the benefits of utilizing state-specific processes 
for Lifeline eligibility verification compared to the federal National 
Verifier system? Could those be adopted by the National Verifier? Is 
the additional administrative complexity associated with coordinating 
eligibility verification with NLAD opt-out states justified by 
commensurate benefits, such as streamlining the process of applying for 
both federal and state benefits in one application? Would moving all 
processes to the standardized process allow the Commission to make any 
needed changes to processes on a quicker timeline? If the Commission 
were to require NLAD opt-out states to use the National Verifier for 
eligibility checks for Lifeline in the same manner as in other states, 
how would this affect those opt-out states and how much time should be 
afforded for the transition? Have there been any lessons learned from 
the California transition?
    How does the consumer experience with the Lifeline application and 
recertification differ in NLAD opt-out states versus other states? Do 
commenters have specific consumer feedback or complaints that highlight 
these differences? If the Commission requires a single federal Lifeline 
verification system across all states, would service providers be able 
to integrate federal Lifeline applications with state Lifeline 
applications to minimize administrative burdens on consumers? What 
changes would help service providers with this integration? Are there 
different state documentation practices that benefit consumers while 
protecting program integrity that should be adopted by the National 
Verifier, if the Commission were to consider mandating nationwide 
reliance on the National Verifier for Lifeline? What are other 
potential impacts on consumers to consider?

Minimizing Reporting Burdens

    The Commission seeks comments on ways to improve program efficiency 
while also reducing regulatory reporting burdens on ETCs participating 
in Lifeline, particularly small businesses, while ensuring that the 
integrity of the program is protected. Several commenters in the 
Delete, Delete, Delete proceeding have suggested various ways of 
streamlining FCC Form 481 and FCC Form 555, the two Lifeline program 
forms that ETCs are required to file annually, including combining the 
forms, having those (and other) forms' filing deadlines set for the 
same date, limiting the number of entities to which the forms must be 
submitted, removing certain filing requirements from the forms, or 
eliminating the forms outright. ETCs report financial and operations 
data on the FCC Form 481 and recertification results on the FCC Form 
555.
    Some commenters raised the possibility of combining all or parts of 
FCC Form 481 and FCC Form 555, and possibly other FCC forms. The 
Commission notes that these forms differ (at least currently) in 
various ways, including who must submit the form (all ETCs or Lifeline-
only ETCs), when and to what entities they must be submitted, and what 
the specific consequences are for failing to submit the form. The 
Commission seeks comments on whether combining these forms would reduce 
reporting burdens, how best to combine these forms, whether combining 
them would create more or less confusion for ETCs, what rules would 
need to be amended to combine the forms, and a reasonable deadline for 
combining these forms.
    Alternatively, the Commission seeks comments on the costs and 
benefits of synchronizing the filing deadlines for the FCC Form 481 
(currently due annually on July 1) and FCC Form 555 (currently due 
annually on January 31). Would it be preferable to synchronize filing 
dates for those two forms (or even additional FCC forms)? Would it be 
more or less burdensome on ETCs to file many separate (or combined) 
forms all

[[Page 16881]]

at once, particularly for those ETCs that are small businesses?
    As to commenters' request that the Commission limits the entities 
to which these forms must be submitted or create a coordinated portal 
where the FCC, USAC, and other relevant entities can access the 
filings, the Commission seeks comments on the costs and benefits, 
including the effect on ease of access to the information and any 
concerns regarding privacy or confidential information, including how 
such concerns could be mitigated. In addition, the Commission seeks 
comments on experiences with One Portal, where some carriers can submit 
certain portions of FCC Form 481 (which states and other entities 
cannot access directly) and FCC Form 555 (which states and other 
entities can access directly).
    Commenters in the Delete, Delete, Delete proceeding have suggested 
revising or eliminating certain reporting requirements. The Commission 
seeks comments on what, if any, specific reporting requirements should 
be eliminated in connection with FCC Form 481 and FCC Form 555. For 
example, the same or similar reporting requirements in FCC Form 481's 
High-Cost portion were previously eliminated: (1) network outage 
reporting, (2) complaint reporting, and (3) certification of compliance 
with service quality standards and consumer protection rules. The 
Commission seeks comments on whether to eliminate these and other 
requirements in the Lifeline portion of FCC Form 481, including: (1) 
certification of compliance with Lifeline rules regarding applicable 
minimum service standards, (2) certification that the carrier is able 
to function in emergency situations in compliance with Lifeline rules, 
and (3) descriptions of the terms and conditions of voice telephony 
service plans offered to Lifeline subscribers. Similarly, the 
Commission seeks comments on whether to amend or eliminate any of the 
recertification-related data captured on FCC Form 555 and whether 
certifications should continue to be made by a corporate officer of the 
ETC.
    For each of these requirements, the Commission seeks comments on 
the costs and benefits of requiring such information be reported on the 
annual forms, especially for information that may be collected 
elsewhere (e.g., the Commission's consumer complaint system and outage 
reporting system). If commenters believe this information should still 
be collected from ETCs, the Commission request specific recommendations 
on how to revise the requirements to make the data more useful for 
individual and aggregate analysis. The Commission also seeks comments 
on whether commenters have specific revisions to the questions, as they 
exist on the current forms, to make them clearer or less burdensome.
    Finally, the Commission seeks comments on other ways to amend forms 
or USAC practices to improve processes or promote integrity. For 
example, should corporate officers submitting reimbursement requests be 
required to certify compliance with specific key program rules, rather 
than with all rules? With respect to non-compliance in Lifeline 
generally and the changes proposed in the NPRM, what additional 
information, if any, should USAC or the Commission provide in its 
notices of non-compliance or debt demand letters to carriers? Are there 
changes the Commission can make to further ensure that Lifeline 
carriers are notified of the basis for recovery, and are able to 
respond appropriately?

Promoting Principled Service Provider Conduct

ETC Compliance Plans
    The Commission examines whether changes are needed to the 
conditions placed on non-facilities-based ETCs to participate in the 
Lifeline program under the Commission's grant of forbearance from the 
statute's ``own facilities'' requirement. The Commission also seeks 
comments on how to improve program integrity related to non-facilities-
based ETCs and inquire about potential amendments to the standards and 
processes for compliance plans that are needed for an ETC to receive 
forbearance from the Act.
    The ``own facilities'' requirement of section 214(e)(1)(A) of the 
Act mandates that ETCs receiving USF support must provide the supported 
services, e.g., voice or broadband, either wholly or partly through use 
of their own facilities, and not be a pure reseller of another 
carrier's services. In the 2012 Lifeline Report and Order (FCC 12-11) 
published at 77 FR 12952, March 2, 2012, the Commission granted blanket 
forbearance from the own facilities requirement subject to certain 
conditions, finding that the use of the ETC's own facilities in 
providing Lifeline-supported service was not necessary to ensure just 
and reasonable rates or to protect the public interest, and that 
forbearance was in the public interest as long as certain conditions 
were met. Carriers were required to comply with all 911 and enhanced 
911 service obligations. They also were required to submit and receive 
approval from WCB for a compliance plan including certain required 
information concerning how the carrier will comply with all Lifeline 
program service requirements and program integrity obligations.
    Some program integrity concerns that have plagued the Lifeline 
program in recent years disproportionately involve certain non-
facilities-based ETCs that operate under the Commission's grant of 
forbearance, including Q Link Wireless, American Broadband, TracFone 
Wireless, and Total Call Mobile, to name several examples. Of the 
examples listed, Q Link Wireless committed the most egregious program 
integrity violations. Q Link and its owner, Issa Asad, were charged 
with conspiring to knowingly submit and causing to be submitted false 
and fraudulent claims to the Lifeline program for customers who were 
not using Lifeline-supported services consistent with FCC usage 
regulations, including customers who never activated their supported 
services. On October 15, 2024, Q Link and Issa Asad pled guilty to 
several offenses involving their Lifeline misconduct including theft of 
government funds and defrauding the United States. Q Link and Issa Asad 
agreed to pay more than $110 million to resolve criminal charges and 
civil claims arising under the False Claims Act related to these 
violations. On July 24, 2025, Asad received a sentence of 60 months' 
imprisonment. In light of this history, the Commission seeks comments 
on changes to the conditions placed on non-facilities-based ETCs 
subject to forbearance that would promote Lifeline program integrity.
    Compliance Plan Requirements. The Commission seeks comments on 
what, if any, changes to current compliance plan requirements may be 
necessary. At a minimum, Lifeline compliance plans currently must 
include: (1) information about the carrier and the Lifeline plans it 
intends to offer, including detailed information demonstrating that the 
carrier is financially and technically capable of providing the 
supported Lifeline service in compliance with the Commission's rules; 
(2) detailed information, including geographic locations, of the 
carrier's current service offerings, the terms and conditions of each 
Lifeline service plan offering, and all other certifications required 
under Sec.  54.202 of the Commission's rules; (3) a detailed 
explanation of how the carrier will comply with the Commission's rules 
relating to the determination of subscriber eligibility for Lifeline 
services; (4) a detailed explanation of how the carrier will comply 
with the forbearance conditions relating to public safety and 911/E-911 
access; (5) a

[[Page 16882]]

detailed explanation of how the carrier will comply with the 
Commission's marketing and disclosure requirements for participation in 
Lifeline; and (6) a detailed explanation of the carrier's procedures 
and efforts to prevent program integrity issues in connection with 
Lifeline funds.
    Are there additional data points, fields or explanations that 
compliance plans should capture? Should compliance plans include 
descriptions of the company's corporate structure? If so, should the 
structure also identify and describe any parent companies, affiliates, 
or subsidiaries? If an applicant is a subsidiary of a parent company, 
should the applicant include information about how resources, operating 
infrastructure, and other support may be shared with the parent company 
to support providing service to Lifeline recipients? How should this 
information be included in an application without disclosing 
unnecessary confidential information of the parent company? Should 
compliance plans identify any unaffiliated third-party companies that 
will be used to assist the Lifeline program applicant with providing 
Lifeline program services to consumers and provide an explanation of 
the third-party's role in those efforts? Should compliance plans 
identify any resale wholesalers the ETC will use to obtain facilities-
based services? Should the compliance plan include copies of such 
contracts? Should Lifeline-only ETCs be required to update any changes 
to those arrangements? Are there restrictions that should be placed on 
such arrangements? Should compliance plan corporate structure 
descriptions report ownership by any foreign persons or foreign 
entities? Should corporate ownership by a foreign person or entity 
seeking approval of a new compliance plan require separate review by 
U.S. national security agencies before approval can be granted? Should 
review of compliance plans include assessing whether the entities or 
their equipment are included on the list of communications equipment 
and services (``covered list'') that are deemed to pose an unacceptable 
risk to United States national security or the security and safety of 
United States persons? Should compliance plans identify corporate 
officers and their relevant experience? Should compliance plans 
identify top level management and explain their experience in providing 
telecommunications or related services to consumers? Should companies 
be required to have compliance officers, and if so, should compliance 
officers be required to certify that the company complies with its 
Lifeline program obligations? Should providers be required to identify 
the procedures they will use to prepare and certify claims for 
reimbursement? If not, why? Should they require disclosure of all 
instances in which the company or its senior officers have been (1) 
involved or charged with criminal wrongdoing, or actions giving rise to 
criminal wrongdoing, (2) subject to investigations into possible 
violations of the False Claims Act or other similar laws, and debt 
collection efforts by state or federal agencies, or (3) engaged in 
waste, fraud, or abuse of federal funding? Should compliance plans 
explain how ETCs will monitor their agents who enroll subscribers on 
their behalf? Should compliance plans require ETCs to explain the steps 
they will take to ensure that agents hired by contractors to enroll 
subscribers on their behalf will be trained and their activities be 
monitored? Should marketing companies be required to report to the ETCs 
they work for when an agent they employ is barred from RAD? Audits and 
program integrity reviews conducted by USAC have revealed many 
compliance problems in the Lifeline program. Should Lifeline program 
rules or compliance plans require an annual audit to evaluate rule 
compliance? Should Lifeline compliance plans require that ETCs disclose 
allegations or evidence of waste, fraud, and abuse?
    For a compliance plan to be approved, the ETC must demonstrate that 
it is financially and technically capable of operating in the Lifeline 
program. Among the relevant financial and technical capability 
considerations are whether the applicant previously offered ``services 
to non-Lifeline consumers, how long it has been in business, whether 
the applicant intends to rely exclusively on USF disbursements to 
operate, whether the applicant receives or will receive revenue from 
other sources, and whether it has been subject to enforcement actions 
or ETC revocation proceedings in any state.'' What other information 
should be required to demonstrate the provider is a bona fide 
telecommunications provider? Should Lifeline compliance plans include 
audited, or if not available, unaudited financial statements, and if 
so, how many years of past financial statements should be included? 
Should applicants be required to provide information about other 
significant financial resources or transactions that the companies 
would use to support, or are material to, their participation in the 
Lifeline program? What is the appropriate scope of financial resource 
information that should be reported? For example, should this include 
advertisement revenue, revenue generated from selling customer 
information, etc., or should the required information be limited to 
financial ownership? Should compliance plans include information about 
any non-Lifeline communications service revenue that could be used to 
support operations for the services provided to Lifeline subscribers, 
and should this information include data about other revenue sources 
not tied to providing communications services but that might support 
the Lifeline ETC in its overall operations? Financial ratios are 
commonly used to measure a company's financial health. For example, the 
times interest earned (TIE) ratio measures a company's ability to meet 
its interest obligations using its operating earnings. The TIE ratio is 
calculated by dividing earnings before interest and taxes (or EBIT) by 
total interest expense. Should the Commission require the ETC to 
demonstrate financial health using the TIE ratio and/or other financial 
ratios? If so, what ratio or ratios should be required and what is an 
acceptable value for each such ratio? Should the Lifeline-only ETC and 
the Lifeline compliance plan requirement be formally incorporated into 
the codified rules? Should a providers' manuals and processes of 
policies and procedures that they provide to their employees and agents 
be attached as appendices to the compliance plan? Should compliance 
plans include subscriber counts, and if so, how many years of past data 
should be submitted? If an approved ETC is submitting an amendment of 
its compliance plan for approval, should the amended compliance plan 
contain recent or current subscriber counts, and if so, should it 
include a breakdown of the number of Lifeline subscribers and non-
Lifeline program subscribers? Should compliance plans include a 
discussion of the databases and transactional processing systems that 
applicants will use, for example, for enrolling or billing Lifeline 
consumers? Should compliance plans include measures the service 
provider is taking and will take to comply with Lifeline program rules, 
including how it will track usage and other program requirements? 
Should a discussion of such databases and transactional processing 
systems discuss how fraud by agents, third party companies involved in 
assisting customers, and others with access to the systems will be 
prevented with respect to enrollment and transfers-in? Should this 
requested

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information be required for all third-party activities or limited to 
specific activities such as customer outreach services? Should 
compliance plans include a detailed explanation of the company's 
Lifeline program compliance training and other internal controls? 
Should ETCs be mandated to provide employees with compliance training 
on Lifeline program rules and other internal controls? Should there be 
certain minimum training requirements, and if so, what should those 
minimum requirements be? Should compliance plans include consumer 
protection plans such as a porting guidance script to be used for 
consumers in the event that an ETC fails to respond? What other 
financial and technical capability information should be included in 
compliance plans?
    The Commission seeks comments on what changes, if any, should be 
made to the Lifeline compliance plan requirements beyond those 
discussed above. Are there changes to the requirements that should be 
made that will result in consistency and efficiencies in WCB's review 
and processing of compliance plans? Are there current regulatory 
processes at the Commission that WCB should leverage to assist in such 
reviews such as seeking public comment on submitted compliance plans?
    Are there certain conditions that should be attached to compliance 
plans, once approved, that would result in automatic termination of the 
compliance plan if the condition is violated? The Commission seeks 
comments on what the conditions should be for terminating a Lifeline 
compliance plan. Should Lifeline compliance plans terminate when ETCs 
are found guilty of committing fraud or other misconduct in the 
Lifeline program? Should compliance plans terminate when ETCs change 
corporate ownership or control without notifying the Commission and 
receiving approval of an updated compliance plan? Or should ETCs be 
permitted to restart participation in the Lifeline program and continue 
under their previously approved compliance plan if they establish to 
the Commission's satisfaction that they have returned to their prior 
corporate structure and control? Under what circumstances should 
Lifeline compliance plans terminate? Should compliance plans have an 
expiration date at which time they must be re-submitted and re-
approved? If so, how long should that period be? How often should WCB 
review approved compliance plans? Should all compliance plan amendments 
require WCB approval? Which compliance plans amendments should require 
WCB approval? Should providers be required to submit compliance plans 
annually or at some other interval? Or alternatively, should providers 
be required to update their compliance plans as circumstances change, 
e.g., if they offer a new Lifeline plan or if they have an inordinate 
number of non-usage de-enrollments? How would re-approval work 
logistically? Should the frequency of compliance plan submissions be 
based on the number of subscribers that a provider has? The Commission 
seeks comments on the cost and benefits of more frequent compliance 
plan submission for providers, USAC, and the Commission. Are there ways 
that the reporting burden can be reduced while still collecting the 
necessary information? Finally, how often should the Commission require 
providers to submit updated compliance plans? Should a provider be 
allowed time to revise and resubmit a compliance plan if updates are 
required and the resubmitted compliance plan was deficient?
    Letters of Credit. The Commission seeks comments on whether 
requiring non-facilities-based ETCs to obtain letters of credit as 
required by carriers in the Commission's USF High Cost programs would 
promote program integrity and ensure continuity of service for 
subscribers in the event their ETC faces significant recoveries due to 
violations of program rules. Since 2011, the Commission has required 
recipients of High Cost program support authorized through a 
competitive process to obtain letters of credit as a financial 
guarantee that the service provider has access to the necessary funds 
to complete the network buildout as committed in their winning bid. 
Non-facilities-based ETCs face minimal capital expenditures because 
they do not deploy their own networks, but many may be paying more in 
operating expenses than facilities-based carriers because they lease 
network capacity. Adopting a letter of credit requirement for the 
Lifeline program would ensure that ETCs can reimburse the USF for 
recovered funds or pay fines due to program rule violations, and allow 
the ETC to use ongoing USF support to continue paying network leases to 
wholesalers to maintain continuity of service for subscribers. Would 
requiring letters of credit from non-facilities based providers seeking 
to enter the Lifeline program ensure continuity of service in these 
circumstances? What would be the advantages and disadvantages of 
requiring non-facilities-based ETCs to obtain letters of credit? If the 
Commission adopts a letter of credit requirement, should it apply to 
all non-facilities-based ETCs currently operating under approved 
compliance plans, or just those whose compliance plans will be granted 
in the future? If the Commission were to require letters of credit, 
under what circumstances should the Commission draw on the letters of 
credit (e.g., compliance plan violations, findings of improper 
payments, unpaid notices of apparent liability or forfeiture orders)? 
Relatedly, what documentation should be required for the Commission to 
draw on the letters of credit?
    The Commission also seeks comments on the standards for letters of 
credit, including the value of the letter of credit and standards for 
the issuing bank the Commission should adopt if it requires letters of 
credit for non-facilities-based ETCs. High Cost support recipients, for 
example, in the Rural Digital Opportunity Fund (RDOF), are required to 
maintain letters of credit that increase in value on an annual basis, 
but may reduce the value of their letters of credit upon certification 
that they have met certain deployment obligations. How should the 
Commission determine the value of a letter of credit in the Lifeline 
program? Should it be based on subscriber count, or other factors? 
Should the value be higher than the proceeds the carrier would receive 
from the expected number of Lifeline subscribers that the carrier plans 
to serve plus an additional percentage? Most relevant to the 
Commission's inquiry concerning potential changes to Lifeline program 
requirements, the current standards for High Cost mechanisms that 
require letters of credit require that the entity issuing the letter 
must be a United States bank insured by the Federal Deposit Insurance 
Corporation (FDIC) that meets the criteria to be considered ``well 
capitalized'' as determined by the FDIC, the Federal Reserve, and the 
Office of the Comptroller of the Currency (OCC). Each agency has 
codified nearly identical criteria to determine a bank's capitalization 
status and whether it is ``well capitalized.'' For a bank to be well 
capitalized, the regulations also require a confirmation from the bank 
that it is not subject to certain regulatory actions from its 
supervising agency. What should the standards for the bank issuing the 
letter of credit be? Should the Commission adopt the letter of credit 
standards noted in this paragraph for use by the Lifeline program? 
Should the Commission permit only U.S. banks to issue letters of 
credit? Should the

[[Page 16884]]

Commission require that the issuing bank be insured by the FDIC? Should 
the Commission require the issuing bank to have at least a certain 
credit rating? What should the Commission require the issuing bank's 
credit rating to be? Would alternative financial instruments such as a 
surety bond or performance bond achieve the same goals to ensure 
program integrity?
    Revocation of Compliance Plans. The Commission seeks comments on 
the instances in which a compliance plan should be revoked. If an 
approved entity receives an unfavorable outcome in an enforcement 
action, e.g., a forfeiture order, should that result in revocation of 
WCB's approval of the entity's Lifeline compliance plan? What other 
situations should result in the revocation of a non-facilities-based 
ETC's Lifeline program compliance plan? Would material deviation from 
an approved compliance plan merit revocation? Should such consequences 
be determined on a case-by-case basis, as the particular violation 
warrants? For an ETC that has already received approval of its 
compliance plan, but a change in circumstances warrants submission and 
approval of an updated compliance plan, e.g., due to a change in 
corporate ownership or control, should the provider's participation in 
the Lifeline program be immediately revoked if it fails to submit an 
updated compliance plan or an updated compliance plan is not approved? 
Is revocation of a compliance plan subject to the Administrative 
Procedure Act's (APA) notice requirements for revocation of a license? 
Noting that the APA notice requirements are subject to exceptions ``in 
cases of willfulness or those in which public health, interest, or 
safety requires otherwise,'' if those requirements apply, in what 
circumstances would those exceptions apply? In the event that WCB 
revokes a non-facilities-based ETC's compliance plan, the Commission 
would want to ensure the continuity of service for Lifeline subscribers 
served by that carrier. Should the Commission develop rules or 
processes for moving subscribers of an ETC with a revoked compliance 
plan to another ETC? How should the Commission determine which ETC 
should serve those subscribers or otherwise determine the best way for 
those subscribers to continue to receive service through the provider 
of their choosing? In these circumstances, how could the Commission 
ensure that the ETC whose compliance plan has been revoked complies 
with the Commission's number portability requirements?

Reimbursement for Services That Consumers Actually Use

    ETCs are permitted to offer Lifeline service without assessing and 
collecting a monthly fee, but must adhere to certain specified usage 
requirements. ETCs that offer Lifeline services where they assess and 
collect a monthly fee currently are not required to monitor usage for 
subscribers on such plans. However, the Commission has identified 
several instances in which ETCs may be attempting to evade the usage 
requirement by offering plans with billing arrangements structured to 
appear compliant with Sec.  54.407(c) of the Commission's rules, but 
that may not be. To prevent attempts to evade usage requirements and to 
minimize waste, fraud, and abuse in the program, the Commission 
proposes to amend its rules to require usage tracking and non-usage de-
enrollment for all Lifeline service plans regardless of whether a 
monthly fee is assessed and collected. The Commission anticipates that 
this action would further encourage ETCs to stop offering existing 
plans structured to circumvent the Commission's usage rule from the 
market, eliminate future attempts to create novel, but ultimately non-
compliant billing arrangements, and require more transparency and 
accountability from those ETCs that use plans currently meeting the 
``assess and collect'' standard.
    Section 54.407(c) of the Commission's rules requires ETCs that do 
not ``assess and collect a monthly fee from [their] subscribers'' to 
de-enroll subscribers that have not used their Lifeline service within 
the last 30 days, plus a 15-day cure period. Lifeline subscribers are 
deemed to have ``used'' their service if they have completed an 
outbound call; used data; purchased minutes or data from their 
participating provider; answered an incoming call from anyone who is 
not their provider or provider's representative; responded to direct 
contact from their provider confirming intent to receive Lifeline 
service; or sent a text message. Providers are responsible for tracking 
subscriber usage and retaining appropriate usage documentation to 
demonstrate compliance with the usage requirements. ETCs that do assess 
and collect monthly fees from their subscribers are not currently 
required to track usage or de-enroll their subscribers for non-usage.
    The Commission established this Lifeline usage rule in the 2012 
Lifeline Report and Order. The purpose of the rule was to ``reduce 
waste and inefficiencies in the Lifeline program by eliminating support 
for subscribers who are not using the service and reducing any 
incentives ETCs may have to continue to report line counts for 
subscribers that have discontinued their service.'' The Commission 
stated that the usage rule applies only to ``services for which 
subscribers do not receive monthly bills and do not have any regular 
billing relationship with the ETC'' and thus ``do not have regular 
contact with the ETC that would provide a reasonable opportunity to 
ascertain a continued desire to continue to receive Lifeline 
benefits.'' The Commission in its 2016 Lifeline Report and Order 
``emphasize[d] that only if a carrier bills on a monthly basis and 
collects or makes a good faith effort to collect any money owned within 
a reasonable amount of time will the carrier not be subject to the non-
usage requirements.'' The Commission in 2012 declined to extend the 
usage rule to plans that meet the rule's assess and collect standard, 
stating that plans subject to monthly assessment and collection ``do 
not present the same risk of inactivity as subscribers of pre-paid 
services'' because there is financial incentive for the consumer not to 
continue subscribing to Lifeline service it does not use or intend to 
use.
    As mentioned, some Lifeline providers offered paid plans that 
appear structured to conceal the fact they lacked a regular billing 
relationship between ETC and subscriber and monthly assessment and 
collection. One type of plan required subscribers to pay an upfront 
annual fee. The ETC would then decrement one-twelfth of this lump sum 
monthly to provide the appearance of a monthly assessment and 
collection and avoid the need to comply with usage requirements. Under 
such plans, subscribers are not regularly billed and collection of a 
fee occurs annually, with the only monthly accounting activity being a 
funding transfer between the ETC's own accounts. In a recent response 
to this activity, WCB released a Public Notice in 2024 clarifying that 
``[i]f an ETC assesses and collects an end-user fee but does not do so 
on a monthly basis, the usage requirement applies to that subscriber. A 
one-time fee or a fee collected from the subscriber annually and 
decremented on a monthly basis does not satisfy the rule's requirement 
to assess and collect a monthly fee.''
    A few other ETCs have begun offering consumer payment plans using 
accounts held by the provider, sometimes known as ``digital wallets.'' 
Under these plans, upon enrollment, subscribers are required to deposit 
funds into a refundable digital wallet account that is largely 
controlled by the ETC, with

[[Page 16885]]

some or limited engagement by the subscriber.
    The Commission tentatively concludes that the usage tracking 
requirements currently codified in Sec.  54.407 (c)(1) through (2) of 
the Commission's rules should apply to all Lifeline service plans, 
rather than only those that do not require the assessment and 
collection of a monthly fee. Despite a rule, implementing order, and 
follow-on guidance requiring usage tracking and de-enrollment on plans 
for which ETC and subscriber do not have a regular billing relationship 
that includes the ETC both assessing and collecting a fee from the 
subscriber on a monthly basis, some ETCs remain non-compliant and have 
even adopted more complex plans that purport to, but do not actually, 
satisfy the Commission's billing standard. This effort seems to be in 
furtherance of avoiding the Lifeline program requirement to track usage 
and de-enroll for non-usage. The Commission believes that applying a 
blanket standard is necessary to ensure program integrity and will 
discourage ETCs from creating new plans that attempt to evade usage 
requirements, the terms of which may be inscrutable to consumers. 
Requiring ETCs to preserve usage data in all circumstances will provide 
transparency into Lifeline subscriber usage overall and enhance the 
ability of the Commission and USAC to recover for non-usage. In 
addition, even with plans where a monthly fee is assessed and 
collected, a basic showing of usage will ensure that scarce USF dollars 
are going where they are truly needed. The Commission seeks comments on 
this tentative conclusion.
    The Commission seeks comments on any alternative method of ensuring 
that ETCs properly comply with the Commission's usage requirements and 
any other ways to further the underlying policy goal of preventing 
disbursement of USF support to Lifeline services that go unused? Would 
requiring ETCs to seek Commission approval of each new service plan, 
including billing and collection processes, before they can offer it to 
Lifeline subscribers prevent usage rule non-compliance? Would there be 
any burdens or barriers that the Commission and USAC would encounter in 
administering these types of approvals? What would the scope of such 
review be? Would it implicate privacy or confidential business practice 
considerations? How much would it delay new offerings from coming to 
market? Would it inhibit novel, compliant offerings? Are there 
conditions under which a prepayment-based plan is equivalent to 
debiting a customer's credit card on file? What level of customer 
engagement is sufficient to meet the ``assess and collect'' standard 
(e.g., monthly opt-in versus opt-out)? What changes to the Commission's 
rules would establish clear parameters for such plans and ensure 
support is not wasted on service not needed by a qualifying low-income 
household?
    The Commission also tentatively concludes that applying the usage 
rule to all Lifeline plans would reduce inactivity, and help to curtail 
waste of limited USF dollars. In the 2012 Lifeline Report and Order, 
the Commission stated that due to the lessened risk of inactivity 
regularly billed plans pose, applying usage tracking to them would not 
be worth the corresponding administrative burdens, though it recognized 
that this policy may result in the Lifeline program subsidizing some 
service plans that are not being used. The Commission now wishes to 
reexamine this calculus. The Commission is currently engaging with 
stakeholders on its wide-ranging Delete, Delete, Delete proceeding, 
which aims to overhaul Commission rules to spur communications 
investment, expansion, and innovation. The Public Notice launching the 
proceeding explains that the Commission has `` `a correlative duty to 
evaluate its policies over time to ascertain whether they work--that 
is, whether they actually produce the benefits the Commission 
originally predicted they would.' '' Has applying the usage rule only 
to plans that do not require the assessment and collection of a monthly 
fee adequately eliminated waste in the Lifeline program? Should 
subscribers be permitted to receive monthly Lifeline support if they do 
not use their service just because they pay for a portion of it? How 
prevalent are these situations? What benefits, if any, do subscribers 
of subsidized, infrequently used or unused service see? How does 
subsidizing infrequently used or unused service benefit American 
society? How could funds that currently support underutilized service 
be better spent? How burdensome would requiring usage tracking and de-
enrollment for non-usage on all Lifeline plans be on USAC, the 
Commission, and providers? Would requiring usage tracking and non-usage 
de-enrollment for all plans result in fewer new ETC designation 
requests or increase ETC designation relinquishment? How would 
extending the usage rule to all Lifeline plans affect service offerings 
or participation in Lifeline? Would more providers offer free-to-the-
subscriber service if they were required to monitor usage for all 
plans? One commenter in the Delete, Delete, Delete proceeding advocated 
for the elimination of the usage rule on the ground of consumer choice 
because it requires low-income consumers to ``face the difficult 
choice'' between no-cost services subject to usage requirements and 
services not subject to usage requirements that require payment to the 
ETC. Does the Commission's proposal eliminate these concerns?
    The Commission requires all Lifeline providers to comply with the 
usage rules by certifying their adherence to the usage requirements, 
under penalty of perjury, when submitting claims. The Commission seeks 
comments on whether, in addition to certification requirements, the 
Commission should require providers to demonstrate usage of supported 
service along with reimbursement claims. What are the benefits and 
burdens associated with this approach? Should each individual claim 
include proof of usage or would a sample be sufficient? What are 
different ways for providers to demonstrate subscriber usage consistent 
with the rules? What sort of proof should the Commission require if 
adopting this approach? Would requiring the submission of proof of 
usage further protect program integrity and help ensure that providers 
are tracking and monitoring usage by subscribers? Is it practicable for 
the Commission to rely on usage data submitted as part of the claims to 
help inform or set the minimum service standards for the program each 
year? Should providers be required to identify how they monitor 
compliance with program usage rules? Should providers be required to 
identify any third-parties that provide information related to their 
compliance with program usage rules? The Commission seeks comments on 
the privacy concerns associated with requiring submission of detailed 
usage data along with claim submission. What specific data would be 
necessary to collect, and how could any submission process be designed 
to address and mitigate privacy concerns? Are there other methods of 
ensuring usage the Commission could employ to ensure that limited USF 
resources are going toward service that is being used by subscribers? 
What capabilities does the Commission have to enforce compliance?
    Commission rules require that providers retain documentation that 
demonstrates compliance with program requirements. The Commission seeks 
comments on whether these rules should be modified to identify the 
methods of tracking usage and the documentation that providers must

[[Page 16886]]

maintain to comply with its usage rules. While the definitions as to 
what constitutes usage are simple and uniform, providers use many 
formats. Can carriers provide recommendations for best-practice 
processes for usage reporting that should be recommended for mobile 
broadband providers? Fixed service? For example, should the Commission 
require providers to maintain original call detail records for calls, 
text, and data, which are logs that contain records of many events that 
qualify as usage activity. What are the benefits and burdens associated 
with such an approach? What other documents could providers retain to 
prove compliance with the Commission's usage rules? Would defining it 
as a ``formatted collection of information about a chargeable event for 
use in billing and accounting'' be appropriate? What alternative forms 
of proof should the Commission consider? What records demonstrate the 
purchase of minutes or data? What records should be sufficient to 
establish that a subscriber is responding to direct contact from the 
carrier and confirming that he or she wants to continue receiving 
Lifeline service? How can the Commission ensure that the records 
retained are authentic and generated through the subscriber's bona fide 
activity, and not through automatic data usage by an application?
    The Commission tentatively concludes that providers should not 
track usage through a Commission, USAC, or provider-sponsored phone 
application due to privacy and practical download concerns. Should the 
Commission put specifications or restrictions on how the provider 
collects usage data of Lifeline participants? Should the Commission 
require the ETCs to submit any usage data to the Commission? And if so, 
what data would be collected? How could the Commission design such a 
data collection so that it adhered to the Electronic Communications 
Privacy Act of 1996? Who would have access to this data? Would location 
data be collected? Would it collect any communications content, media 
consumption information, or browsing history? How would the data be 
protected from unauthorized access and use? What notice would 
subscribers be provided about the collection and use of their usage 
data? How could the Commission ensure that the monitoring activity of 
the app itself would not register as qualifying use? How can ETCs 
ensure that existing subscribers with currently in use devices download 
the app? The Commission tentatively concludes to continue to collect 
certification information about usage data, but invite comment on this 
proposal.
    What corresponding changes, if any, to the usage rules should the 
Commission make if it applies usage tracking and non-usage de-
enrollment to all Lifeline plans? Should the 30-day usage period or 15-
day cure period be extended? Would a 30-day opportunity to cure make 
sense, given the typical length of billing cycles? Why might consumers 
fail to use their service for 30 days or more? How long would ETCs need 
to come into compliance with the Commission's proposed change requiring 
usage tracking on all service plans, regardless of whether a monthly 
fee is assessed and collected?
    What changes should be made to the current activation standard? 
Should the Commission modify or eliminate the Lifeline service 
activation requirement in Sec.  54.407(c)(1) of the Commission's rules? 
Is the current definition of the Lifeline service activation 
requirement as ``whatever means specified by the carrier'' so vague as 
to undermine its ability to combat the waste of claiming service 
inaccessible or unused by the subscriber? Is the purpose of the 
Lifeline service activation requirement largely duplicative to the 
requirement in Sec.  54.401(a) of the Commission's rules that Lifeline 
must be a service that ``provides qualifying low-income consumers with 
voice telephony service or broadband internet access?'' Should the 
activation requirement be changed to ``An eligible telecommunications 
carrier shall not receive universal service support for a subscriber to 
such Lifeline service until the subscriber can demonstrate, through 
action that they undertake, that they have been provided with voice 
telephony service or broadband internet access though completion of an 
outbound call, sending a text message or usage of date''? Is there a 
better approach for establishing activation?

ETC Agreements With Non-ETCs

    The Commission next seeks comments on whether additional rules or 
enforcement mechanisms are necessary to ensure that the Lifeline 
program provides reimbursements only to ETCs that ``directly'' serve 
their Lifeline program subscribers. Under section 254(e) of the Act, 
only carriers designated as ETCs may receive reimbursement for 
providing Lifeline service. The Commission's rules specify that 
reimbursement is only made available to an ETC for the ``number of 
actual qualifying low-income customers . . . that the eligible 
telecommunications carrier serves directly as of the first of the 
month.'' Under the Lifeline rules, direct service is defined as ``the 
provision of service directly to the qualifying low-income consumer,'' 
and Lifeline service is a ``non-transferable retail service offering 
provided directly to qualifying low-income consumers.''
    Recently, the Commission has been made aware of certain situations 
where ETCs have entered into agreements with non-ETCs whereby the ETC 
allows the non-ETC to offer Lifeline service using the ETC's name. The 
ETC obtains reimbursement from the Commission for the customers that 
the non-ETC reports to the ETC, and ultimately the ETC transfers the 
majority of the reimbursement to the non-ETC. These situations raise 
questions about whether the ETC is receiving reimbursement despite not 
directly providing service to the customer, and the non-ETC is 
providing Lifeline service despite not being an approved Lifeline ETC. 
The Commission is aware of several such cases occurring as the ACP 
ended.
    Such arrangements may be distinguished from permissible marketing 
agreements that an ETC may enter into to bring in more customers that 
the ETC directly serves, or other arrangements to provide services to 
ETCs such as customer call centers and collection agents. As noted in 
the 2019 Lifeline Report and Order (FCC 19-11) published at 84 FR 
71308, December 27, 2019, date ETCs have entered into marketing 
agreements with enrollment representatives or sales agents to help ETCs 
market to and enroll consumers. While there are no prohibitions against 
ETCs using enrollment representatives, the Commission has placed 
certain restrictions on such activity, including the establishment of 
the Representative Accountability Database and prohibitions against 
commissions, to protect against waste, fraud, and abuse. Should ETCs be 
required to notify the Commission in advance of entering into 
agreements with third-parties to market Lifeline services?
    The Commission also seeks comments on whether to broaden the 
definition of ``enrollment representative'' for Lifeline as done with 
ACP or go further to address any agents of an ETC, and whether to place 
additional restrictions on such agents and non-ETCs in their Lifeline 
related activities and compensation. The Commission seeks comments on 
whether to adopt any additional rules or other mechanisms to address 
arrangements in which an ETC receives reimbursement for service it does 
not directly provide and passes on some of the money to non-ETCs who 
are impermissibly providing Lifeline

[[Page 16887]]

service. Currently, if an ETC is found to have violated an applicable 
Commission rule or order, then the ETC may be subject to recovery of 
funds and penalties authorized by the Communications Act, including, 
but not limited to monetary forfeitures. Typically, investigation and 
sanctions efforts are undertaken by the Enforcement Bureau. 
Additionally, such individuals may be subject to investigation by FCC 
OIG and further sanctions from state regulatory entities and the U.S. 
Department of Justice. And when the violations implicate improper 
Lifeline disbursements, the Commission seeks recovery of associated 
funds. Recoveries for violations of Lifeline program rules as well as 
forfeitures, come from ETCs. Is there also a basis for seeking recovery 
directly from the non-ETC involved in these relationships?
    Should the Commission track every layer of provider marketing from 
the enrollment representative to the provider? Should the Commission 
require that every enrollment representative provide their photo along 
with their ID? Should Commission rules require criminal background 
checks before an RAD ID is issued? If so, what crimes should disqualify 
an applicant from the RAD? Should ETCs or USAC be responsible for 
criminal background checks? How else can the Commission ensure that the 
agent information in RAD reflects accurate information? RAD currently 
only requires an email address to register in RAD. Similarly, how can 
the Commission ensure that an agent listed in NLAD as being linked to 
an enrollment or transfer is in fact an individual that is interacting 
with the enrollee? Should the Commission require the geolocation of the 
agent at the time of enrollment or transfer or subscribers he or she is 
ostensibly assisting? How should the Commission penalize providers and 
their enrollment representatives that submit false or non-bona fide 
information to USAC's information systems including the National 
Verifier, NLAD and RAD? Should the Commission suspend or debar such 
providers and their enrollment representatives? Should carriers be 
continued to allowed API access to the Administrator's databases? Is 
there an alternative to an API that will continue to allow consumers to 
enroll while better protecting the program from potential waste, fraud 
and abuse?

Updating Lifeline Rule Text

    The Commission seeks comments on whether to streamline the existing 
program rules in light of the establishment of the National Verifier 
and the sunset of the EBB program and ACP.
    National Verifier Updates. The Commission makes several proposals 
to streamline Lifeline program rules to reflect the functionality of 
the National Verifier. There are portions of the Commission's rules 
that pre-date the establishment of the National Verifier and continue 
to contemplate Lifeline ETCs completing certain activities that USAC, 
the National Verifier, the NLAD, or state administrators perform. 
First, the Lifeline rules contemplate that ETCs will contact Lifeline 
subscribers as part of the annual recertification process and give 
subscribers 60 days to complete the recertification process. Such 
outreach now can be done by the National Verifier or state 
administrators, although providers may voluntarily also encourage their 
subscribers to respond to recertification efforts. Second, the Lifeline 
rules currently discuss pathways for eligibility determinations that 
are no longer available with the full launch of the National Verifier. 
The Commission seeks comments on updating Lifeline program rules to 
reflect these improved eligibility determination processes now that the 
National Verifier has fully launched.
    Third, the Commission proposes to revise the rule for de-enrollment 
under Sec.  54.405(e)(4) of the Commission's rules given that the 
National Verifier can notify and de-enroll subscribers who fail to 
recertify their continued eligibility or fail to submit one-per-
household recertifications. Fourth, the Commission proposes to update 
and consolidate Sec.  54.410(b) through (d), (f), (h), and (i) of the 
Commission's rules, to reflect that the National Verifier and state 
administrators (rather than ETCs) make the initial determinations of 
eligibility and annual recertifications, and to update Sec.  54.410(d) 
of the Commission's rules to reflect the creation of FCC Form 5629, a 
program application form. Fifth, the Commission proposes to edit Sec.  
54.417 of the Commission's rules to reflect that the effective date of 
the rule was set at February 17, 2016. The Commission seeks comments on 
whether there are any concerns about updating the language of each of 
these rules and how to amend that language while avoiding confusion 
regarding ETCs' continuing compliance obligations.
    The Commission seeks comments on whether and how to change 
additional portions of the rules to reflect streamlined practices. 
Would the possible confusion and costs of updating rule identifiers 
(e.g., eliminating Sec.  54.410(h) of the Commission's rules, which 
addresses the National Verifier transition, and recodifying the 
following subsection) outweigh the benefits of having the rules more 
accurately reflect the current state of the program? Are there any 
technical changes needed to program rules to correct typographical 
errors?
    Deleting EBB and ACP Rules. As previously noted, the ACP (which 
succeeded the EBB program) effectively ended June 1, 2024, because 
funding for the program had been exhausted. As a result, there are no 
longer subscribers in these programs or a basis to enroll new 
subscribers. Therefore, the Commission tentatively concludes to delete 
the EBB program and ACP rules from the Code of Federal Regulations, 
including rules regarding the Affordable Connectivity Outreach Grant 
Program. This conclusion is consistent with the Delete, Delete, Delete 
proceeding's goal to ``review [the FCC's] rules to identify and 
eliminate those that are unnecessary in light of current 
circumstances.'' The Commission's proposal to delete the EBB program 
and ACP rules is not intended to have any substantive impact on the 
interpretation and implementation of the rules in the few instances 
where they serve some on-going function. Specifically, the Commission 
intends that providers must continue to retain documentation in 
accordance with the rules, even after they are deleted. Requiring 
providers to continue complying with the documentation retention rules 
in place when the program was still operating does not create a burden 
on providers because it does not force new requirements upon them. 
Furthermore, deletion of the rules will not result in unfair surprise, 
as there will be no new providers, applicants, or subscribers in the 
programs. To help avoid misunderstandings regarding the continued 
document retention requirements, the Commission proposed an amendment 
to Lifeline Sec.  54.417 of the Commission's rules to make clear that 
the EBB program's, ACP's, and Affordable Connectivity Outreach Grant 
Program's recordkeeping requirements remain in effect even after their 
deletion. The Commission seeks comments on whether there are any 
concerns with deleting these rules in their entirety, including any 
basis for concluding record retention or audit requirements would be 
undermined by this deletion or that enforcement or recovery actions 
related to these programs would be affected. How can the Commission 
ensure that providers to EBB and ACP continue to be able to make 
downward revisions for the program if they identify past issues with

[[Page 16888]]

their filings that resulted in improper claims? Is the Commission's 
proposed amendment to the Lifeline rules sufficient to maintain 
enforcement of the recordkeeping and audit rules and does the rule's 
placement in Lifeline create confusion? Are any additional changes to 
the Commission's rules needed to ensure that ACP providers that only 
held authorizations to participate in ACP and no other Commission 
licenses needed in order to pursue recovery, enforcement, or other 
actions for violations those providers may have committee under the 
ACP? If commenters raise any such concerns, the Commission asks that 
they include specific legal support for their conclusions, if any, and 
any recommendations for how to amend the rules without impacting 
retention requirements, recovery actions, and enforcement. The 
Commission also seeks comments on whether there are any other EBB 
program or ACP rules beyond document retention that continue to serve a 
purpose and would be undermined by being deleted.
    In addition, the Commission seeks comments on deleting the portion 
of Sec.  54.400(s)(3) of the Commission's rules that allows domestic 
violence survivors seeking to obtain an emergency Lifeline benefit to 
prove they are suffering ``financial hardship'' by using the ACP's 
alternative verification process under Sec.  54.1806(a)(2) of the 
Commission's rules to verify a member of the survivor's household 
received a Federal Pell Grant. The Commission tentatively concludes 
that this portion of the rule is no longer necessary, because survivors 
will still be able to show financial hardship through the National 
Verifier. Moreover, the alternative verification process was a specific 
approach allowed under the Consolidated Appropriations Act and its 
unique circumstances amid the COVID-19 pandemic, rather than a process 
required under the Safe Connections Act, which is the focus of Sec.  
54.400(s)(3) of the Commission's rules. The Commission believes it 
would be unnecessary and administratively burdensome to continue to 
allow alternative verification processes, or approve new ones, for 
verifying only one form of eligibility criteria (i.e., Federal Pell 
Grants) for only a narrow sub-category of a low-income benefit program 
(i.e., survivor Lifeline emergency support). The Commission believes 
this is particularly true here, because the Lifeline emergency benefit 
for survivors is time-limited and the eligibility determination for 
that emergency benefit does not necessarily qualify a subscriber for 
continued support under Lifeline.

Benefits and Costs

    The Commission seeks comments on the benefits and costs of these 
proposed rule changes. The Commission expects its proposed reforms will 
affect both low-income consumers and service providers. The Commission 
seeks comments on both the benefits and costs of each proposed rule 
change and also the totality of the rule changes proposed. Will the 
proposed changes lead to more competition and/or better service 
offerings for consumers? Will consumers face any increased costs or 
nonmonetary burdens as a result of the proposed rule changes? What are 
the benefits to service providers of minimizing reporting burdens? How 
will service providers overall benefit from improved service provider 
conduct? Will there be any costs to service providers to implement the 
improved program processes? Will any costs to service providers result 
in costs to the consumer? To what extent will the proposed rule changes 
impact USF expenditures?

II. Procedural Matters

A. Paperwork Reduction Act Analysis

    This document contains proposed new or modified information 
collection requirements. The Commission, as part of its continuing 
effort to reduce paperwork burdens, invites the general public and the 
Office of Management and Budget (OMB) to comment on the information 
collection requirements contained in this document, as required by the 
Paperwork Reduction Act of 1995, Public Law 104-13. In addition, 
pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 
107-198, see 44 U.S.C. 3506(c)(4), the Commission seeks specific 
comments on how to further reduce the information collection burden for 
small business concerns with fewer than 25 employees.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980, as amended (RFA), requires 
that an agency prepare a regulatory flexibility analysis for notice-
and-comment rulemaking proceedings, unless the agency certifies that 
``the rule will not, if promulgated, have a significant economic impact 
on a substantial number of small entities.'' Accordingly, the 
Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) concerning the possible impact of potential rule and/or policy 
changes contained in the NPRM on small entities. The Commission invites 
the general public, in particular small businesses, to comment on the 
IRFA. Comments must be filed by the deadlines for comments on the NPRM 
indicated in the DATES section of this document and must have a 
separate and distinct heading designating them as responses to the 
IRFA.
    Ex Parte Rules. This proceeding shall be treated as a ``permit-but-
disclose'' proceeding in accordance with the Commission's ex parte 
rules. Persons making ex parte presentations must file a copy of any 
written presentation or a memorandum summarizing any oral presentation 
within two business days after the presentation (unless a different 
deadline applicable to the Sunshine period applies). Persons making 
oral ex parte presentations are reminded that memoranda summarizing the 
presentation must (1) list all persons attending or otherwise 
participating in the meeting at which the ex parte presentation was 
made, and (2) summarize all data presented and arguments made during 
the presentation. If the presentation consisted in whole or in part of 
the presentation of data or arguments already reflected in the 
presenter's written comments, memoranda, or other filings in the 
proceeding, the presenter may provide citations to such data or 
arguments in his or her prior comments, memoranda, or other filings 
(specifying the relevant page and/or paragraph numbers where such data 
or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with Commission rule Sec.  1.1206(b), 47 CFR 
1.1206(b). In proceedings governed by Commission rule Sec.  1.49(f) or 
for which the Commission has made available a method of electronic 
filing, written ex parte presentations and memoranda summarizing oral 
ex parte presentations, and all attachments thereto, must be filed 
through the electronic comment filing system available for that 
proceeding, and must be filed in their native format (e.g., .doc, .xml, 
.ppt, searchable .pdf). Participants in this proceeding should 
familiarize themselves with the Commission's ex parte rules.
    Providing Accountability Through Transparency Act. Consistent with 
the Providing Accountability Through Transparency Act, Public Law 118-
9, a summary of this document will be available on <a href="https://www.fcc.gov/proposed-rulemakings">https://www.fcc.gov/proposed-rulemakings</a>.

[[Page 16889]]

C. Initial Regulatory Flexibility Analysis

    As required by RFA, the Commission has prepared this IRFA of the 
policies and rules proposed in the NPRM assessing the possible 
significant economic impact on a substantial number of small entities. 
The Commission request written public comments on this IRFA. Comments 
must be identified as responses to the IRFA and must be filed by the 
deadlines for comments specified in the DATES section of this document. 
In addition, the NPRM and IRFA (or summaries thereof) will be published 
in the Federal Register.
Need for, and Objectives of, the Proposed Rules
    The Commission is required by section 254 of the Communications Act 
of 1934, as amended, to promulgate rules to implement the universal 
service provisions of section 254. The Lifeline program was implemented 
in 1985 in the wake of the 1984 divestiture of AT&T. On May 8, 1997, 
the Commission adopted rules to reform its system of universal service 
support mechanisms so that universal service is preserved and advanced 
as markets move toward competition. The Lifeline program is 
administered by the Universal Service Administrative Company (USAC), 
the Administrator of the universal service support programs, under 
Commission direction, although many key attributes of the Lifeline 
program are currently implemented at the state level, including 
consumer eligibility, eligible telecommunication carrier (ETC) 
designations, outreach, and verification. Lifeline support is passed on 
to the subscriber by the ETC, which provides discounts to eligible 
households and receives reimbursement from the universal service fund 
(USF or Fund) for the provision of such discounts.
    In the NPRM, the Commission considers ways to promote principled 
service provider conduct, consumer protection and program integrity 
enhancements to ensure Lifeline services are actually used to benefit 
low-income consumers and ways to optimize Lifeline program processes 
for integrity and efficiency. Refinements to the Lifeline program under 
consideration include: enhancing verification processes; ensuring 
Lifeline ETC compliance with all Lifeline program rules; enhancing the 
enrollment and transfer experience for households; revisiting non-usage 
rules; improving minimum service standards; ending the voice-only 
service phase-down; preventing duplicative support; optimizing Lifeline 
program integrity and efficiency processes; reforming opt-out state 
requirements; minimizing reporting burdens for ETCs; streamlining 
Lifeline rule text; and other updates that may be appropriate to make 
the current Lifeline program's rules reflect how the program currently 
operates.
Description and Estimate of the Number of Small Entities to Which the 
Proposed Rules Will Apply
    The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the SBA. The SBA 
establishes small business size standards that agencies are required to 
use when promulgating regulations relating to small businesses; 
agencies may establish alternative size standards for use in such 
programs, but must consult and obtain approval from SBA before doing 
so.
    The Commission's actions, over time, may affect small entities that 
are not easily categorized at present. The Commission therefore 
describes three broad groups of small entities that could be directly 
affected by its actions. In general, a small business is an independent 
business having fewer than 500 employees. These types of small 
businesses represent 99.9% of all businesses in the United States, 
which translates to 34.75 million businesses. Next, ``small 
organizations'' are not-for-profit enterprises that are independently 
owned and operated and not dominant their field. While the Commission 
does not have data regarding the number of non-profits that meet that 
criteria, over 99 percent of nonprofits have fewer than 500 employees. 
Finally, ``small governmental jurisdictions'' are defined as cities, 
counties, towns, townships, villages, school districts, or special 
districts with populations of less than fifty thousand. Based on the 
2022 U.S. Census of Governments data, the Commission estimates that at 
least 48,724 out of 90,835 local government jurisdictions have a 
population of less than 50,000.
    The rules proposed in the NPRM will apply to small entities in the 
industries identified in the chart below by their six-digit North 
American Industry Classification System (NAICS) codes and corresponding 
SBA size standard. Based on currently available U.S. Census data 
regarding the estimated number of small firms in each identified 
industry, the Commission concludes that the proposed rules will impact 
a substantial number of small entities. Where available, the Commission 
also provides additional information regarding the number of 
potentially affected entities in the industries identified in Table 1--
2022 U.S. Census Bureau Data by NAICS Code, Table 2--Telecommunications 
Service Provider Data and Table 3--Cable Entities Data.
Description of Economic Impact and Projected Reporting, Recordkeeping, 
and Other Compliance Requirements for Small Entities
    The RFA directs agencies to describe the economic impact of 
proposed rules on small entities, as well as projected reporting, 
recordkeeping and other compliance requirements, including an estimate 
of the classes of small entities which will be subject to the 
requirements and the type of professional skills necessary for 
preparation of the report or record.
    The NPRM seeks comment on proposed rules that would improve the 
Lifeline program by promoting principled service provider conduct, 
implementing consumer protection and program integrity enhancements to 
ensure Lifeline services are actually used to benefit low-income 
consumers and optimizing Lifeline program processes for integrity and 
efficiency. Small entities that voluntarily choose to participate in 
the Lifeline program, may face costs associated with new or modified 
recordkeeping, reporting, and other compliance obligations. Small 
entities may need to hire professionals to comply with the requirements 
that may be adopted as a result of the proposals and matters discussed 
in the NPRM. Compliance costs may include requirements associated with 
consent collection, de-enrollment, consumer eligibility evaluation, as 
well as technical and programmatic costs to adjust internal Lifeline 
databases and compliances practices for covered providers. For example, 
in the NPRM the Commission inquires about whether the Commission should 
require service providers to obtain an affirmative response to a text 
or email to verify consumers' new enrollment and transfer requests and 
submit this evidence of consumer consent for each transfer

[[Page 16890]]

transaction to the Universal Service Administrative Company and whether 
the Commission should require service providers to enter the date and 
time in the National Lifeline Accountability Database (NLAD) that 
households provided their enrollment or transfer consent. As another 
example, the Commission also inquires about whether to modify the 
Commission's rules to identify the methods of tracking usage and the 
documentation that providers must maintain to comply with its non-usage 
rules.
    In assessing the cost of compliance for small entities, at this 
time the Commission cannot quantify the cost of compliance with the 
potential rule changes that may be adopted. In accordance with the 
Commission's requests for comments in the NPRM, small entities are 
encouraged to provide specific information pertaining to the costs, 
benefits, and impacts of any potential reporting, recordkeeping, or 
compliance requirements the Commission discusses. The Commission 
expects the comments received to include information on the costs and 
benefits, and other pertinent matters that should help us identify and 
evaluate relevant issues for small entities, including compliance costs 
and other burdens (as well as countervailing benefits), so that the 
Commission may develop final rules that minimize such costs and address 
such issues to the extent possible.
Discussion of Significant Alternatives Considered That Minimize the 
Significant Economic Impact on Small Entities
    The RFA directs agencies to provide a description of any 
significant alternatives to the proposed rules that would accomplish 
the stated objectives of applicable statutes, and minimize any 
significant economic impact on small entities. The discussion is 
required to include alternatives such as: ``(1) the establishment of 
differing compliance or reporting requirements or timetables that take 
into account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance and 
reporting requirements under the rule for such small entities; (3) the 
use of performance rather than design standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for such small 
entities.''
    The NPRM seeks comment throughout on the burdens of the proposed 
rules, and any alternatives, on providers, which includes small 
providers. Additionally, the NPRM seeks comment on the ways in which 
program changes to the Lifeline program might impact both consumers and 
service providers, which includes small providers, participating in the 
Lifeline program. Further, the NPRM seeks comments on ways to reduce 
regulatory reporting burdens on ETCs participating in Lifeline, 
particularly small businesses.
    In the NPRM, the Commission seeks comments on adjusting minimum 
service standards in the low income communications market. 
Specifically, the NPRM seeks comments on whether small businesses would 
be disproportionately impacted if minimum service standards were 
increased and what the impact would be on those small service 
providers. Further, the Commission seeks comments on ways to reduce 
reporting burdens on Lifeline ETCs who are small businesses. Annually, 
ETCs must file FCC Form 481 to report financial and operations data and 
FCC Form 555 to report recertification results. In the NPRM, the 
Commission seeks comment on the possibility of combining these two 
forms and other FCC forms or moving the filing deadlines to the same 
date and whether it would be more or less burdensome for ETCs that are 
small businesses to file combined forms or to require multiple forms 
filed on the same date. The Commission also seeks comments on ways to 
amend or eliminate certain information that is required on these forms 
or whether to entirely eliminate the use of certain forms.
    The Commission expects to more fully consider the economic impact 
and alternatives for small entities following the review of comments 
filed in response to the NPRM, including cost and benefit analyses. 
Having data on the costs and economic impact of proposals and possible 
approaches the Commission discusses will allow the Commission to better 
evaluate options and alternatives to minimize any significant economic 
impact on small entities that may result from the proposals and 
approaches, if adopted. The Commission's evaluation of this information 
will shape the final alternatives it considers to minimize any 
significant economic impact that may occur on small entities, the final 
conclusions it reaches and any final rules it promulgates in this 
proceeding.
Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules
    None.

III. Ordering Clauses

    Accordingly, it is ordered, pursuant to the authority contained in 
section 1, 4(i), 4(j), 254, 345, and 403 of the Communications Act of 
1934, as amended; 47 U.S.C. 151, 154(i), 154(j), 254, 345, and 403; 
that the Notice of Proposed Rulemaking is adopted.
    It is further ordered that, pursuant to applicable procedures set 
forth in Sec. Sec.  1.415 and 1.419 of the Commission's rules, 47 CFR 
1.415, 1.419, interested parties may file comments on the Notice of 
Proposed Rulemaking on or before May 4, 2026 and reply comments are due 
on or before June 2, 2026.

List of Subjects in 47 CFR Part 54

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications, Telephone.

Federal Communications Commission.
Marlene Dortch,
Secretary.

Proposed Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR part 54 as follows:

PART 54--UNIVERSAL SERVICE

0
1. The authority citation for part 54 continues to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 
229, 254, 303(r), 403, 1004, 1302, 1601-1609, and 1752, unless 
otherwise noted.

Subpart E--Universal Service Support for Low-Income Consumers

0
2. Amend Sec.  54.400 by revising paragraph (s)(3) to read as follows:


Sec.  54.400   Terms and definitions.

* * * * *
    (s) * * *
    (3) At least one member of the household has received a Federal 
Pell Grant under section 401 of the Higher Education Act of 1965 (20 
U.S.C. 1070a) in the current award year, if such award is verifiable 
through the National Verifier or National Lifeline Accountability 
Database;
* * * * *
0
3. Amend Sec.  54.403 by revising paragraphs (a)(1) and (2) to read as 
follows:


Sec.  54.403   Lifeline support amount.

* * * * *
    (a) * * *
    (1) Basic support amount. Federal Lifeline support in the amount of 
$9.25 per month will be made available to an

[[Page 16891]]

eligible telecommunications carrier providing broadband service, 
subject to the minimum service standards set forth in Sec.  54.408, to 
a qualifying low-income consumer if that carrier certifies to the 
Administrator that it will pass through the full amount of support to 
the qualifying low-income consumer and that it has received any non-
federal regulatory approvals necessary to implement the rate reduction.
    (2) Voice-only support amount. Federal Lifeline support in the 
amount of $5.25 per month will be made available to an eligible 
telecommunications carrier providing standalone voice service, subject 
to the minimum service standards set forth in Sec.  54.408, or voice 
service with broadband below the minimum standards set forth in Sec.  
54.408, to a qualifying low-income consumer if that carrier certifies 
to the Administrator that it will pass through the full amount of 
support to the qualifying low-income consumer and that it has received 
any non-federal regulatory approvals necessary to implement the rate 
reduction.
* * * * *
0
4. Amend Sec.  54.404 by revising paragraphs (b)(6) and (c)(4) to read 
as follows:


Sec.  54.404   The National Lifeline Accountability Database.

* * * * *
    (b) * * *
    (6) Eligible telecommunications carriers must transmit to the 
Database in a format prescribed by the Administrator each new and 
existing Lifeline subscriber's full name; full residential address; 
date of birth and the subscriber's Social Security number or Tribal 
Identification number, if the subscriber is a member of a Tribal nation 
and does not have a Social Security number; the telephone number 
associated with the Lifeline service; the date on which the Lifeline 
service was initiated; the date on which the Lifeline service was 
terminated, if it has been terminated; the amount of support being 
sought for that subscriber; and the means through which the subscriber 
qualified for Lifeline.
* * * * *
    (c) * * *
    (4) All eligible telecommunications carriers must transmit to the 
Database in a format prescribed by the Administrator each new and 
existing Link Up recipient's full name; residential address; date of 
birth; and the subscriber's Social Security number, or Tribal 
identification number if the subscriber is a member of a Tribal nation 
and does not have a Social Security number; the telephone number 
associated with the Link Up support; and the date of service 
activation. Where two or more eligible telecommunications carriers 
transmit the information required by this paragraph to the Database for 
the same subscriber, only the eligible telecommunications carrier whose 
information was received and processed by the Database first, as 
determined by the Administrator, will be entitled to reimbursement from 
the Fund for that subscriber.
* * * * *
0
5. Amend Sec.  54.405 revising paragraph (e)(4) and by adding new 
paragraph (f) to read as follows:


Sec.  54.405   Carrier obligation to offer Lifeline.

* * * * *
    (e) * * *
    (4) De-enrollment for failure to re-certify. Notwithstanding 
paragraph (e)(1) of this section, a Lifeline subscriber who does not 
respond to attempts to obtain re-certification of the subscriber's 
continued eligibility as required by Sec.  54.410(f) or who fails to 
provide the annual one-per-household re-certifications as required by 
Sec.  54.410(f) must be de-enrolled. Prior to de-enrollment under this 
paragraph, the subscriber must be notified, using clear, easily 
understood language, that failure to respond to the re-certification 
request will trigger de-enrollment. A subscriber must be given 60 days 
to respond to recertification efforts. If a subscriber does not respond 
to the notice of impending de-enrollment, the subscriber must be de-
enrolled from Lifeline within five business days after the expiration 
of the subscriber's time to respond to the re-certification efforts.
* * * * *
    (f) Secondary consent verification for enrollment and transfers. An 
eligible telecommunications carrier shall not seek or receive 
reimbursement through the Lifeline program for service provided to a 
subscriber who has not verified their new enrollment request through an 
affirmative response to a text or email using the contact information 
furnished during the application process.
0
6. Amend Sec.  54.407 by revising the introductory text of paragraph 
(c) to read as follows:


Sec.  54.407   Reimbursement for offering Lifeline.

* * * * *
    (c) An eligible telecommunications carrier offering a Lifeline 
service:
* * * * *
0
7. Amend Sec.  54.408 by revising paragraph (c)(1)(ii)(A) to read as 
follows:


Sec.  54.408   Minimum service standards.

* * * * *
    (c) * * *
    (1) * * *
    (i) * * *
    (ii) * * *
    (A) An amount the Wireline Competition Bureau deems appropriate, 
based on what a substantial majority of American consumers who have 
limited data plans already subscribe to, after analyzing Urban Rate 
Survey data and other relevant data; or
* * * * *
0
8. Amend Sec.  54.409 by adding a new paragraph (d) to read as follows:


Sec.  54.409   Consumer qualification for Lifeline.

* * * * *
    (d) Lifeline program support is a federal public benefit restricted 
to U.S. citizens and qualified aliens under the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996, 8 U.S.C. 1611 et seq.
0
9. Amend Sec.  54.410 by deleting paragraphs (b)(2)(i) through (iii), 
(c)(2)(i) through (iii), and (i) and revising paragraphs (a) through 
(d), (f), and (h) to read as follows:


Sec.  54.410   Subscriber eligibility determination and certification.

    (a) All eligible telecommunications carriers must implement 
policies and procedures for ensuring that their Lifeline subscribers 
are eligible to receive Lifeline services. Such policies and procedures 
include, but are not limited to, an eligible telecommunications carrier 
checking its own electronic systems, whether such systems are 
maintained by the participating provider or a third party, to confirm 
that the household is not already receiving another Lifeline benefit 
from that carrier. ETC and their agents may not provide false 
information to the National Verifier, NLAD, or RAD. An eligible 
telecommunications carrier may not provide a consumer with an activated 
device that it represents enables use of Lifeline-supported service, 
nor may it activate service that it represents to be Lifeline service, 
unless and until it has:
* * * * *
    (b) * * *
    (1) The National Verifier, state Lifeline administrator, or other 
state agency is responsible for the initial determination that a 
prospective subscriber meets the income-based eligibility criteria 
provided for in Sec.  54.409(a)(1). An eligible telecommunications 
carrier:
    (i) Must not seek reimbursement for providing Lifeline to a 
subscriber,

[[Page 16892]]

unless the carrier has received a certification of eligibility from the 
National Verifier, state Lifeline administrator, or other state agency 
that the prospective subscriber complies with the requirements set 
forth in paragraph (d) of this section and has confirmed the 
subscriber's income-based eligibility using the following procedures:
    (A) If the National Verifier, state Lifeline administrator, or 
other state agency can determine a prospective subscriber's income-
based eligibility by accessing one or more databases containing 
information regarding the subscriber's income (``income databases''), 
the National Verifier, state Lifeline administrator, or other state 
agency must access such income databases and determine whether the 
prospective subscriber qualifies for Lifeline.
    (B) If the National Verifier, state Lifeline administrator, or 
other state agency cannot determine a prospective subscriber's income-
based eligibility by accessing income databases, the National Verifier, 
state Lifeline administrator, or other state agency must review 
documentation that establishes that the prospective subscriber meets 
the income-eligibility criteria set forth in Sec.  54.409(a)(1). 
Acceptable documentation of income eligibility includes the prior 
year's state, federal, or Tribal tax return; current income statement 
from an employer or paycheck stub; a Social Security statement of 
benefits; a Veterans Administration statement of benefits; a 
retirement/pension statement of benefits; an Unemployment/Workers' 
Compensation statement of benefit; federal or Tribal notice letter of 
participation in General Assistance; or a divorce decree, child support 
award, or other official document containing income information. If the 
prospective subscriber presents documentation of income that does not 
cover a full year, such as current pay stubs, the prospective 
subscriber must present the same type of documentation covering three 
consecutive months within the previous twelve months.
    (ii) Must securely retain copies of documentation, consistent with 
Sec.  54.417, demonstrating the eligible telecommunications carrier 
received notice that the National Verifier, state Lifeline 
administrator, or other state agency determined a prospective 
subscriber's income-based eligibility for Lifeline meet the income 
eligibility criteria set forth in Sec.  54.409(a)(1).
    (c) * * *
    (1) The National Verifier, state Lifeline administrator, or other 
state agency is responsible for the initial determination that a 
prospective subscriber meets the program-based criteria set forth in 
Sec.  54.409(a)(2) or (b). An eligible telecommunications carrier:
    (i) Must not seek reimbursement for providing Lifeline to a 
subscriber unless the carrier has received a certification of 
eligibility from the National Verifier, state Lifeline administrator, 
or other state agency that the prospective subscriber complies with the 
requirements set forth in paragraph (d) of this section and has 
confirmed the subscriber's program-based eligibility using the 
following procedures:
    (A) If the National Verifier, state Lifeline administrator, or 
other state agency can determine a prospective subscriber's program-
based eligibility for Lifeline by accessing one or more databases 
containing information regarding enrollment in qualifying assistance 
programs (``eligibility databases''), the National Verifier, state 
Lifeline administrator, or other state agency must access such 
eligibility databases to determine whether the prospective subscriber 
qualifies for Lifeline based on participation in a qualifying 
assistance program; or
    (B) If the National Verifier, state Lifeline administrator, or 
other state agency cannot determine a prospective subscriber's program-
based eligibility for Lifeline by accessing eligibility databases, the 
National Verifier, state Lifeline administrator, or other state agency 
must review documentation demonstrating that a prospective subscriber 
qualifies for Lifeline under the program-based eligibility 
requirements. Acceptable documentation of program eligibility includes 
the current or prior year's statement of benefits from a qualifying 
assistance program, a notice or letter of participation in a qualifying 
assistance program, program participation documents, or another 
official document demonstrating that the prospective subscriber, one or 
more of the prospective subscriber's dependents or the prospective 
subscriber's household receives benefits from a qualifying assistance 
program.
    (ii) Must securely retain copies of the documentation, consistent 
with Sec.  54.417, demonstrating the eligible telecommunications 
carrier received notice that the National Verifier, state Lifeline 
administrator, or other state agency determined a subscriber's program-
based eligibility for Lifeline.
    (d) Eligibility certification form. Eligible telecommunications 
carriers and state Lifeline administrators or other state agencies must 
provide prospective subscribers the Federal eligibility certification 
form.
    (1) * * *
* * * * *
    (f) * * *
    (1) The National Verifier, the state Lifeline administrator, or 
other state agency must annually re-certify all subscribers.
    (2) In order to re-certify a subscriber's eligibility, the National 
Verifier, the state Lifeline administrator, or other state agency must 
confirm a subscriber's current eligibility to receive Lifeline by:
    (i) * * *
* * * * *
    (iii) If the subscriber's program-based or income-based eligibility 
for Lifeline cannot be determined by accessing one or more eligibility 
databases, then the subscriber must provide a signed certification 
confirming the subscriber's continued eligibility. If the subscriber's 
eligibility was previously confirmed through an eligibility database 
during enrollment or a prior recertification and the subscriber is no 
longer included in any eligibility database, the subscriber must 
provide both an Annual Recertification Form and documentation meeting 
the requirements of paragraph (b)(1)(i)(B) or (c)(1)(i)(B) of this 
section to complete the process. The subscriber must use the Wireline 
Competition Bureau-approved universal Annual Recertification Form, 
except where state law, state regulation, a state Lifeline 
administrator, or a state agency requires eligible telecommunications 
carriers to use state-specific Lifeline recertification forms.
    (3) The National Verifier, state Lifeline administrator, or other 
state agency must provide to each eligible telecommunications carrier 
the results of its annual re-certification efforts with respect to that 
eligible telecommunications carrier's subscribers.
    (4) If an eligible telecommunications carrier has been notified by 
the National Verifier, a state Lifeline administrator, or other state 
agency that it is unable to re-certify a subscriber, the eligible 
telecommunications carrier must comply with the de-enrollment 
requirements provided for in Sec.  54.405(e)(4).
* * * * *
    (h) Survivors of domestic violence. All survivors seeking to 
receive emergency communications support from the Lifeline program must 
have their eligibility to participate in the program confirmed through 
the National Verifier. The National Verifier will also transition 
survivors approaching the end of their six-month emergency

[[Page 16893]]

support period in a manner consistent with the requirements at 
paragraph (f) of this section, and the National Verifier will de-enroll 
survivors whose continued eligibility to participate in the Lifeline 
program cannot be confirmed, consistent with Sec.  54.405(e)(6).
0
10. Amend Sec.  54.417 by revising paragraphs (b) and (c) to read as 
follows:


Sec.  54.417   Recordkeeping requirements.

* * * * *
    (b) If an eligible telecommunications carrier provides Lifeline 
discounted wholesale services to a reseller, it must obtain a 
certification from that reseller that it is complying with all 
Commission requirements governing the Lifeline and Tribal Link Up 
program. The eligible telecommunications carrier must retain the 
reseller certification for the three full preceding calendar years and 
provide that documentation to the Commission or Administrator upon 
request.
    (c) Upon deletion of the rules in subparts P, R, and S of this 
part, all those subparts' requirements regarding recordkeeping and 
providing records to the Commission or Administrator upon request will 
remain in force as they existed prior to the deletion of those rules. 
The deletion of the rules in subparts P, R, and S of this part will 
also have no impact on the ability of the Commission or the 
Administrator to engage in audits or enforcement, recovery, or other 
actions for violations of the rules as they existed prior to the 
deletion of those rules.

Subpart P--[Removed and Reserved]

0
11. Remove and reserve subpart P, consisting of 54.1600 through 
54.1612.


Sec. Sec.  54.1600 through 54.1612   [Removed and Reserved]

* * * * *

Subpart R--[Removed and Reserved]

0
12. Remove and reserve subpart R, consisting of 54.1800 through 
54.1814.


Sec. Sec.  54.1800 through 54.1814   [Removed and Reserved]

* * * * *

Subpart S--[Removed and Reserved]

0
13. Remove and reserve subpart S, consisting of 54.1900 through 
54.1904.


Sec. Sec.  54.1900 through 54.1904   [Removed and Reserved]

* * * * *
[FR Doc. 2026-06531 Filed 4-2-26; 8:45 am]
BILLING CODE 6712-01-P


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Indexed from Federal Register on April 3, 2026.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.