Why the Lifeline Program Matters

Internet access is a necessity in modern society. Broadband internet access is vital for work, education, entertainment, communication, news, banking, health care, and commerce. However, there is a stark digital divide in this country. Millions of Americans do not have access to broadband and the opportunities that come with it—and most studies point to the high cost of the service as the biggest barrier to access.

Just 53 percent of U.S. adults who make less than $30,000 a year reported having access to broadband at home, compared to 80 percent of those making between $30,000 and $99,000 a year and 94% of those making more than $100,000 annually. This divide disproportionately harms communities of color as well. A reported 72 percent of white Americans have broadband access at home, compared to 57 percent of Black Americans and 47 percent of Hispanic Americans. Further, 22 percent of rural Americans are reported to not use the internet. A lack of broadband access at home puts these Americans at a distinct disadvantage.

The Federal Communications Commission’s Lifeline program, started under President Reagan and updated under President George W. Bush and more recently under President Obama, offers a $9.25 monthly subsidy for qualifying low-income households to purchase phone and internet service. Approximately 12.8 million Americans subscribe to the Lifeline program.

Lifeline is crucial to closing the “Homework Gap,” where students whose families can afford home internet access have more opportunities in learning than those who cannot afford it.

An estimated 70 percent of teachers in the U.S. assign homework that requires internet access to complete, while 15 percent of households with school-aged children lack a high-speed broadband connection at home (35 percent of school-age children in households making less than $30,000 annually lack high-speed broadband access at home). For homework assignments, independent learning about personal interests, and enrolling in online schools and universities, a strong broadband connection is crucial for students of all ages.

The Pew Research Center found that 17 percent percent of U.S. teenagers said that they often or sometimes are unable to complete their homework due to a lack of a reliable computer or internet connection. Black teenagers (25 percent), Hispanic teenagers (17 percent), and teenagers from households making less than $30,000 annually (24 percent) were more likely to report an inability to complete their homework than white teenagers (13 percent) were.

The U.S. Department of Education recently reported that 46 percent of Black children and 44 percent of Hispanic children who did not have internet access at home said that it was because internet service was too expensive, while only 28 percent of white children who did not have access said the same.

For low-income health care recipients, Lifeline serves as a critical tool connecting them to their doctors, pharmacies, and other health care services supported through online services that help patients keep track of appointments and manage chronic health conditions.

A survey from 2012 indicated that even then, 54 percent of Lifeline recipients using the service offered by Assurance Wireless used it to communicate with their doctors, as well as for other health care-related needs. EmblemHealth, which serves over 140,000 Medicaid recipients in New York state, stated in its FCC filing: “The program provides financial assistance to low-income individuals to purchase data plans they are otherwise unable to afford. In turn, EmblemHealth can communicate important information by text that allows our enrollees to take best advantage of the services we offer.”

A text messaging program involving diabetes management was found to have resulted in a net cost savings of $812 per participant over a six-month period, according to AHIP. Studies also show that health care text messaging programs help participants stop smoking, improve diabetes management, help patients adhere to medication plans, and help pregnant women access important information. (Source: AHIP, EmblemHealth)

Veterans make up an estimated 10 percent to 13 percent of current Lifeline recipients.

Lifeline service provides veterans a crucial and necessary tool to find and set up job interviews, help navigate chronic health conditions at home through text messaging and other connected health care programs, and provides veterans with service needed to seek emotional help if and when it is required. Through telemedicine services provided by the Veterans Health Administration, veterans in the Lifeline program are able to monitor vital signs and their medication treatments from home. Further, the National Association of American Veterans notes that millions of military families qualify and participate in various federal aid programs, including Lifeline.

OTI recently hosted an event discussing the importance of the Lifeline program and the damage the FCC’s recent proposals could have on the digital divide and the program’s effectiveness.