FCC ADVANCES PROPOSAL TO LOWER RATE CAPS FOR INTERSTATE PRISON PHONE CALLS AND HIGHLIGHTS URGENT NEED FOR CONGRESS TO PASS PRISON PHONE JUSTICE LEGISLATION

NATIONWIDE — Today, federal regulators voted to advance a proposed rulemaking that would reduce rates for interstate prison phone calls and affirm the FCC’s authority over related ancillary fees but also acknowledged the limited impact of these actions, calling for federal legislation that would expand the FCC's authority over instate rates. Federal regulators also encouraged public comment regarding the new proposed rate caps, suggesting the final rate caps could be lower if there was support in the record. These actions have the potential to lower the cost of communication for families with incarcerated loved ones.

At the agency’s August 2020 Open Commission Meeting, commissioners of the Federal Communications Commission voted to approve a Report and Order on Remand and a Fourth Further Notice of Proposed Rulemaking related to prison phone calls. With this vote, the Commission has taken a step in responding to longstanding demands from families with incarcerated loved ones to reign in the exorbitant cost of prison phone calls and other fees charged by prison telecom corporations.

“Today, Chairman Pai and the other commissioners finally voted in favor of families when they voted to advance rulemaking that would lower the rates they pay to stay connected with their incarcerated loved ones and affirmed the FCC's regulatory authority over related ancillary fees,” said Bianca Tylek, Executive Director of Worth Rises. “Still, the proposed rate caps and ancillary fees remain high. So, we also appreciate Commissioner Pai's commitment to reviewing the forthcoming record and openness to further reducing rate caps. But regardless, we must acknowledge that it will be some time before families get relief through this process and that the impact of the final rule will be limited to a fraction of calls. Today’s vote reinforces the need for Congress to pass legislation giving the FCC full authority to regulate the prison telecom industry.” 

The Commission’s rulemaking, once completed, proposes to reduce rate caps for interstate calls, currently $0.21 per minute for debit and prepaid calls and $0.25 per minute for collect calls, to $0.14 per minute for calls from prisons and $0.16 per minute for calls from jails. During the meeting, Commissioner Pai welcomed public comments and data in support of even lower caps.

However, the FCC’s action will have no impact on instate calls, which make up 80% of calls. In his remarks at the meeting, Chairman Pai reiterated his call for federal phone justice legislation, stating that he “would welcome congressional action” to grant the FCC authority to fully regulate the prison telecom industry. Chairman Pai also demanded that state and local authorities “at long last address this pressing problem.” Prison phone justice advocates are pushing for legislation at the federal, state, and local levels that would drastically reduce or eliminate the cost of calls. 

The Commission’s vote also resolves the question of whether the agency has authority to regulate certain fees and surcharges, known as ancillary fees, that telecom providers charge families.

Background: In May, the U.S. House of Representatives passed the Martha Wright Prison Phone Justice Act as part of the HEROES Act COVID-19 relief package. The bill would give the FCC the power to regulate instate rates for prison and jail calls, which it was barred from regulating without further Congressional action by courts in recent years. The bill would also institute interim rate caps of $0.04 (prepaid) and $0.05 (collect calls) per minute. Advocates are pushing Senate leadership to include the bill language passed by the House in the upcoming Senate relief bill.