Low Income

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 eligible telecommunications carriers (ETCs) then seek reimbursement from the federal Universal Service Fund's Low Income Program for the revenue they forgo to provide discounted service to eligible low-income consumers.

To receive Low Income reimbursements, ETCs must file one Lifeline and Link Up Worksheet (Form 497) for each month of Low Income support claimed. Carriers may either file one form monthly or file forms for three months on a quarterly basis. ETCs may file original and revised Form 497s for up to 25 months depending on the time of year.

USAC routinely reviews ETCs support claims to ensure they are consistent with the Federal Communication Commission's rules. In addition to the review of Form 497 data, 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 7/22/2010