FCC Could Tighten Rules for Lifeline Broadband Subsidy

The Federal Communications Commission (FCC) is studying changes to a broadband benefit program that has been in place since 1985. If approved, the changes could make it harder to qualify and would place additional guardrails on participating providers.

The Lifeline program pays the first $9.25 per month of mobile phone or home internet bills for certain low-income households, with an additional $25 per month for households in Tribal lands.

The program is underutilized. In her statement about the decision to study the issue (PDF), FCC Commissioner Anna M. Gomez cited data saying only 20% of eligible households were using it as of 2021.

The program is also insufficient. The cheapest home broadband plans cost around $40 per month, but the average price of advertised internet plans is $77 per month, before taxes, fees, and equipment charges. Low-income families who signed up for Lifeline have to make up the difference.

Mobile phone plans aren’t much cheaper, and the Lifeline subsidy can be used only once per household.

What happened at the FCC Meeting on Feb. 18?

The commission voted 2-1 to study changes to the Lifeline program (PDF), with Gomez dissenting in part and concurring in part. Chair Brendan Carr has pushed for the changes since he discovered what he calls “fraud, waste, and abuse.” He pointed to instances of the subsidy being paid to providers on behalf of the deceased.

“The government should not be spending the money of hardworking Americans to provide phone and Internet service to dead people,” Carr said in a statement about his vote (PDF). “I am advancing reforms to ensure that only living, lawfully eligible individuals participate in the Lifeline program, consistent with federal law. If adopted, these program changes would strengthen eligibility verification, close loopholes identified by the Inspector General, and restore confidence in Lifeline.”

His statements came after an analysis by the Benton Institute for Broadband & Society, which found that the problems Carr uncovered amounted to just 0.1% of expenditures for the program.

“It seems clear that the Carr agenda is to reduce Lifeline enrollment — perhaps by as many as 2 million households — on the very thin reed of a 0.1 percent issue in the program,” wrote John Horrigan, a senior fellow at the Benton Institute for Broadband & Society. “That’s 1/1000 of a penny.”

Gomez, the only commissioner appointed by the Biden administration, was strident in her criticism.

“The proposal before us is just the next move in a systemic effort by this Administration to eviscerate federal support for low-income consumers across the country,” she said. “This is not a war on poverty. It is a war on the poor.”

Commissioner Olivia Trusty concurred with the motion and made a statement in support.

What happens next?

No changes will be made to the Lifeline program right away, but government officials who administer the Universal Service Fund will study the Lifeline program and make recommendations to the commission.

Part of that process is receiving public comment. You can say your piece by accessing the Electronic Comment Filing System or the Federal eRulemaking Portal, or by sending an email to [email protected] for filing instructions.

My take: Take advantage of Lifeline if you can

There are a few things wrong with the Lifeline subsidy program, but the biggest problem is that people who need it aren’t using it. It’s basically free money, and you qualify if you meet the following criteria:

• Your household has at least one individual who participates in a qualifying federal assistance program: Medicaid, Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income, Federal Public Housing Assistance, or VA Survivors Pension.
• You have an income at or below 135% of the Federal Poverty Guidelines.

Sign up by entering your info into the National Verifier, then choose a mobile phone or internet company in your area. From there, your provider will cover the first $9.25 of your monthly bill.

If you don’t qualify, local providers or state programs may be able to help. Learn about signing up for free internet in your area.

If Carr’s changes are approved, you could be required to double-verify your enrollment by replying to a text message or email, and you may be required to provide your full social security number, among other things.

All that said, it’s clear to me that internet access is too expensive for many people across the country. But in 2026, connectivity is no longer a luxury.

Rather than pointing fingers and spending time fixing problems that impact only a tiny percentage of the budget of a single program, the FCC should focus on making broadband more affordable and accessible for everyone.