Rep. Obernolte Introduces Bill After California Loophole Allowed Millions in Payments to Deceased Individuals
WASHINGTON, D.C. — Congressman Jay Obernolte (R-California) has introduced the No Lifeline for the Dead Act, legislation to strengthen oversight and accountability in the FCC’s Lifeline program following a watchdog report uncovering widespread waste, fraud, and abuse tied largely to California’s enrollment system.
The Lifeline program provides a monthly subsidy to help low-income Americans afford phone and broadband service, ensuring access to essential communications for work, education, healthcare, and public safety. The program is funded through the Universal Service Fund, which is supported by contributions from telecommunications providers and ultimately paid for by consumers.
To administer the program, the FCC relies on national verification tools to confirm eligibility and prevent duplicate enrollments. However some states including California have been allowed to “opt out” of these federal systems and instead use their own eligibility and enrollment processes. While intended to provide flexibility, this structure reduces federal visibility and creates gaps in oversight.
A January 2026 FCC Inspector General advisory found that between 2020 and 2025, Lifeline providers in opt-out states including California received nearly $5 million in subsidies for approximately 117,000 deceased people, along with more than 270,000 duplicate claims totaling about $5.5 million. Notably, 81 percent of the payments for the deceased claimed by providers were in California.
California’s opt-out system allowed the state to bypass federal verification tools like the National Lifeline Accountability Database and National Verifier, instead relying on its own process. This fragmented approach contributed to significant failures in identifying deceased and duplicate enrollees.
“The Lifeline program plays an important role in helping Americans stay connected, but taxpayers deserve accountability,” said Rep. Obernolte. “This report shows that California’s failure to use federal verification systems allowed millions of dollars to go to ineligible recipients, including deceased individuals. That is unacceptable. This bill corrects that problem.”
The legislation requires all states to use federal verification systems, strengthens identity checks, and requires re-verification of existing enrollees to ensure that only eligible individuals receive benefits.
Earlier this month, Rep. Obernolte also led a letter to the FCC requesting a plan to recover improper payments, implement watchdog recommendations, and prevent future abuse