FCC Proposes Lifeline Program Changes, Could Affect Low-Income Internet Access
Is the FCC changing Lifeline?
Last month, the Federal Communications Commission (FCC) voted to consider adding additional eligibility restrictions to its Lifeline internet subsidy program. The Lifeline program, which provides a $9.25 monthly internet and telephone credit to qualifying low-income households, could potentially see some of the following changes:
- Formally restricting Lifeline to U.S. citizens.
- Requiring a 5-year waiting period for qualifying non-citizens or those going through the immigration approval process.
- Requiring applicants to enter their full Social Security number rather than their last 4 digits.
- Changing eligibility requirements to a “1-per-address” rule that may affect households with multiple families.
The FCC argues that these changes are designed to root out financial waste from the Lifeline program. In its news release, the FCC cited a January internal investigation that found the program lost $10.5 million from 2020 to 2025 due to funds being credited to deceased individuals or issued twice.
That said, this total charge is less than than 1% of Lifeline’s annual budget, which was allotted at $2.9 billion for 2026 alone. Similarly, administrative improvements were only a fraction of the FCC’s proposed Lifeline changes, which focused heavily on citizenship verification. While these proposed updates have a long way to go before they potentially become policy, industry analysts argue that the FCC’s changes would create additional roadblocks for families who need low-income internet.
How proposed Lifeline changes affect low-income internet
Lifeline is already a relatively underused program for several reasons. The FCC-affiliated Universal Service Administration Company estimates that only 21% of qualified applicants enrolled in Lifeline during 2025.
Similarly, Lifeline’s base $9.95 monthly credit doesn’t come close to covering standard internet plans from most providers, which start at around $50 per month. Instead, most Lifeline customers have to settle for specialty low-income internet plans with sub-100 Mbps speeds that make gaming or high-definition streaming difficult.
Multiple industry groups blasted the FCC’s vote as a way to make it harder for legal immigrants and low-income households to get online.
“Everyone deserves affordable phone and internet service,” said Jenna Leventoff, Senior Policy Counsel for the American Civil Liberties Union, in a statement. “We are concerned that FCC proposals to limit Lifeline eligibility, increase data collection about program users, and to phase out phone-only service will further widen the digital divide. We urge the FCC to reconsider these harmful proposals so that everyone can stay connected.”
All of these factors suggest that the biggest effect of the FCC’s proposed changes will be to make it even harder for low-income families to sign up for Lifeline and get internet access. We’ll point out that Lifeline already requires applicants to be enrolled in a qualifying government assistance program or show that their earnings are below the federal poverty line.
In an era when the digital divide is more pronounced than ever, these proposed policy changes appear to benefit ISPs far more than working households.
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