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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Lifeline Phone Subsidy Program

Regulators say low-income phone program is hemorrhaging millions, By Fred Hiers, August 2, 2011, Ocala Star-Banner: “Federal and state regulators are working to fix a program they believe is making millions of dollars in unauthorized payments to low-income phone customers. Lifeline is a federal program, paid for by all phone users, which subsidizes low-income people in order to help pay for their phone installations and use. The limit is one phone. The subsidy goes to the phone service provider. The annual subsidy for customers is nearly $162 per year. According to a Florida Public Service Commission report, 642,129 Floridians were subscribing to the program as of June 20, 2010. Other states also administer the program. The problem is, some customers are receiving payments for more than one phone, regulators say…”