New bill targets CA’s ‘Obamaphone Fraud’ after state collected millions for dead people’s phone, internet service

 A new bill has been introduced by U. S. Senator Joni Ernst from Iowa, aiming to combat fraud in the federal Lifeline program, which supports low-income individuals by subsidizing phone and internet services. This initiative follows concerns about California's alleged mishandling of funds, including payments to deceased individuals.

1. Fraud Allegations: The legislation comes after California collected approximately $3.8 million for services provided to 94,000 deceased individuals from 2020 to 2025. Ernst criticized the state for allowing such practices and called for accountability.

2. Legislative Proposal: The "No Lifeline for Dead People Act" would mandate all telecommunications companies to use the federal government's National Verifier system to confirm eligibility for the Lifeline program. This would prevent states from using their own systems, which Ernst argues could be less effective.

3. California's Response: Governor Gavin Newsom's office has defended the state, asserting that many subscribers were eligible when alive, and that delays in closing accounts contributed to these improper payments. They characterized the issue as part of managing a large public program rather than outright fraud.

4. Broader Implications: Although California is under scrutiny, the report from the Federal Communications Commission (FCC) indicated that there are verification issues in other states as well, including Texas and Oregon. Ernst's bill seeks to strengthen federal oversight across all states to prevent future fraudulent enrollments.

5. Political Reactions: The introduction of this bill has sparked a heated political response. Newsom's office has criticized Ernst's approach, suggesting it misrepresents the reality of public service administration and that similar verification issues exist nationwide.

Senator Ernst's proposed legislation aims to address concerns regarding improper payments in the Lifeline program, particularly focusing on deceased individuals receiving subsidies. While the bill emphasizes the need for a more rigorous federal verification system, it has been met with pushback, particularly from California officials who argue that the situation is complex and not solely rooted in fraud. The outcome of this legislative effort could significantly impact how the Lifeline program operates across the country. 

https://nypost.com/2026/02/26/us-news/new-bill-targets-california-after-state-collected-millions-for-dead-peoples-phone-internet-service/