A newly issued Federal Communications Commission ruling may help qualifying households obtain free or reduced-cost internet or phone service.
Last week the FCC approved a measure to broaden an existing phone subsidy so it also applies to broadband internet.
Since 1985, the Lifeline program has offered a discounted rate on (originally landline) phone service for low-income families.
In recent years the program has expanded significantly as many low-cost and prepaid mobile carriers joined. The FCC has been working since 2012 to incorporate internet access into the program, and last week’s action finally put that expansion into effect.
The program provides a $9.25 monthly discount on qualifying services. With this update, beneficiaries can apply the discount to:
- Landline phone service
- Mobile voice and data service
- Broadband internet service
How to Enroll
You qualify if your income is at or below 135% of the federal Poverty Guidelines — or if you participate in one of several government assistance programs (see the list here).
For example, a household of four in most states would be eligible with a yearly income of $32,805 or less.
Applications are handled through your chosen service provider rather than directly with the government. Begin by locating a Lifeline Service Provider in your state.
You will need documentation of income or proof that you participate in a qualifying assistance program. See acceptable proof here.
Only one discount is permitted per household.
This means you can receive a discount toward a landline, mobile phone or broadband plan; OR you can use a single discount on a bundled package that includes multiple services.
If you share a residence with other adults but maintain separate finances (for example, in an assisted living setting or in some roommate situations), you might qualify for separate Lifeline discounts.
Find more information about your eligibility here.
What the Benefit Provides
The program guarantees at least a $9.25 monthly reduction, though some carriers provide extra perks under the Lifeline program.
Check with the provider you choose to learn what specific Lifeline benefits they offer.
For instance, plans fromAccess WirelessandAssurance Wirelessgive customers a complimentary wireless handset plus a free monthly allowance of minutes and texts.
Large carriers such as AT&T, CenturyLink, Verizon and T-Mobile participate as well, though their discounts reduce costs rather than eliminate them.
With these larger carriers the discount can feel less significant because typical monthly bills often range from $50–$100. A $9.25 reduction won’t dramatically lower that total.
Regardless of which carrier you choose, you won’t receive inferior service.
The FCC’s rule establishes minimum monthly thresholds for broadband access, mobile data and voice minutes, ensuring that discounted plans meet baseline standards.
The monthly minimums are:
- 150GB of broadband usage
- 500MB of mobile data, rising to 2GB by the end of 2018
- 500 minutes of mobile voice, rising to 1,000 by the end of 2018
Recent Changes to the Lifeline Program
The program faced criticism a few years ago because enforcement was weak and some participants ignored the one-per-household rule.
Reforms were enacted in 2013 that tightened proof-of-income standards and increased oversight.
Your Turn: Have you ever used the Lifeline program?
Jordan Reed is a staff writer at Savinly. Jordan has contributed to several outlets and aims to bring clarity and a bit of humor to personal finance topics whenever possible.
