Low Income

Overview of the Process

Overview of the Low Income Program Process.

Consumers apply for Lifeline, Link Up, and Toll Limitation Service (TLS) support through their local telephone company or a designated agency. The companies then seek reimbursement from the federal Universal Service Fund's Low Income Program for the revenue they forgo by providing discounted service to eligible low-income consumers.

Eligible telecommunications carriers (ETCs) that have provided eligible consumers with Lifeline discounts file the Lifeline and Link Up Worksheet (Form 497) with USAC to receive Low Income Program support that reimburses them for providing service at discounted rates. Carriers must file one Form 497 for each month for which they are claiming support. Carriers may either file forms for three months on a quarterly basis or file one form monthly.

USAC pays companies based on a projection and then trues-up that amount when it receives a company's support claim on Form 497. Carriers can file original and revised Form 497s for up to 25 months depending on the time of year. Carriers frequently file revisions to update their support claims.

USAC routinely reviews carriers' support claims to ensure they are consistent with the Federal Communication Commission's rules. In addition to the review of the data submitted on Form 497, USAC's Internal Audit Division conducts Low Income beneficiary audits to ensure program compliance.

USAC disburses Low Income support payments once each month. The payment amount disbursed to each company is a projection that is based on the company's historical support claims for the past twelve months.

Two months prior to the start of each quarter, USAC is required to file projections with the FCC for each support program. The Low Income projection is calculated by applying a growth rate across all carriers currently receiving low income support.


Last modified on 2/29/2008