Cell phone subsidies claimed by many who can't prove eligibility | Mobile - CNET News

Cell phone subsidies claimed by many who can't prove eligibility | Mobile - CNET News: "The agency figured that around 15 percent of users would be determined ineligible, but the tighter rules discovered a lot more than that.
A review of the program by The Wall Street Journal found that 41 percent of the 6 million people who benefited from Lifeline were unable to prove their eligibility or failed to answer requests for verification from their carrier.
In total, the government spent about $2.2 billion on Lifeline last year.
Mobile phone subscribers pay around $2.50 per household to fund Lifeline and other subsidized programs. That money is used to pay carriers $9.25 per customer each month to deliver free or cheap mobile service, according to the Journal. Funding for Lifeline has risen over the years as more carriers have jumped onto the bandwagon."

"Until recently, subscribers didn't have to offer any proof of their income level. They could continue with the program without having to periodically verify their eligibilty. And no checks were made to see how many people in a household were taking advantage of Lifeline."