What you get
The Lifeline program: how the federal phone discount works
The calculator above shows what the discount is worth for your type of service over the months you choose.
What the Lifeline discount is worth
Discount per month
$9.25
| Over 12 months | $111 |
| Standard part | $9.25 |
| Tribal lands extra | $0 |
The discount comes off the bill of the company you choose; it is never paid to you in cash.
The Lifeline program is a federal benefit created to make phone and internet service affordable for low-income households. Three players share the work. The Federal Communications Commission (FCC) writes the rules, in Part 54 of Title 47 of the Code of Federal Regulations. The Universal Service Administrative Company (USAC) administers the program: it runs the National Verifier that decides eligibility, recertifies subscribers every year and operates the Lifeline Support Center. Approved phone and internet companies, called eligible telecommunications carriers, give subscribers a discount of up to $9.25 a month, $34.25 on qualifying Tribal lands, and are reimbursed from federal universal service support. The money never goes to the household in cash. The FCC indexed the program budget to inflation at $2,976,503,538 for 2026 and $3,053,892,630 for 2027. In June 2026, companies claimed support for 7,641,862 households. Lifeline is available in every state, commonwealth and territory and on Tribal lands, and its rules are under a comprehensive FCC review opened on February 23, 2026.
Rules and figures read by Radif Partners · Editorial policy · Method
From the Universal Service Fund to your monthly bill
The discount travels a short path. You apply and the National Verifier, or the state process in Oregon or Texas, decides whether your household qualifies. You then sign up with an eligible telecommunications carrier, which enters you in the national database. Each month, USAC takes a snapshot of the subscribers that companies may claim, and each company is reimbursed for the support it passed on. Under 47 CFR 54.403, a company receives support only if it certifies that it passes the full amount through to the subscriber.
That design explains two features people find confusing. Lifeline is tied to a company, so changing company means transferring the benefit. And the discount is applied to a plan, so its value is the plan price minus the support. A plan priced at $20 costs $10.75 after the standard discount; a plan priced at $9.25 costs nothing.
The budget, in figures
The FCC set the program’s budget in 2016 and indexes it to the Consumer Price Index each year. The Wireline Competition Bureau notice of July 29, 2026 gives the indexed amounts:
| Calendar year | Lifeline budget | Per month |
|---|---|---|
| 2026 | $2,976,503,538 | $248,041,962 |
| 2027 | $3,053,892,630 | $254,491,053 |
The 2027 budget is $77,389,092 higher than the 2026 one. The budget is not one of the eligibility tests: a household qualifies on the conditions of 47 CFR 54.409 alone.
Who uses Lifeline, state by state
USAC publishes, in its disbursement data, the number of subscribers each company claims each month. For June 2026, the total was 7,641,862 households, with California first at 1,528,835. Late claims can still change those figures. Pick a state:
Lifeline in your state
Subscribers claimed, June 2026
861,266
| Mobile companies listed | 11 |
| Home phone or internet companies | 33 |
| ZIP codes covered | 2,110 |
| Apply through | the National Verifier |
USAC open data; claims for June 2026 can still be revised by late filings.
Rules that keep the program honest
Several rules protect the fund. Only one benefit is allowed per household. Every subscriber is recertified each year, with 60 days to answer when the automatic check fails. A free plan must be used at least once every 30 days, under 47 CFR 54.405, or the company must end it after a 15-day notice. Companies cannot take a National Verifier application by phone, as the USAC application rules specify, and they must mark every advertisement as Lifeline, a government assistance program limited to one discount per household. The FCC Enforcement Bureau runs a fraud tip line at 1-855-455-8477.
The program also has an outreach side. Every year, in the week after Labor Day week, the FCC, the National Association of Regulatory Utility Commissioners and the National Association of State Utility Consumer Advocates hold Digital Connectivity and Lifeline Awareness Week, which gives state, local and Tribal bodies material to help low-income households understand and use Lifeline. People with a disability who need help applying can call the Lifeline Support Center at 1-800-234-9473.
What is under review
The FCC’s 2016 reform moved Lifeline from voice toward broadband, with standards that rise each year and support for voice-only service planned to end. Since 2021, the Wireline Competition Bureau has paused that phase-out every year. On July 1, 2026 it paused it again, together with the yearly increase of the data standards, until December 1, 2027, because the Commission’s proposed rulemaking of February 23, 2026 is reviewing voice support, the minimum service standards and how they are updated. Until new rules are adopted, the amounts and standards on this site stay in force. The Lifeline phone page details those standards, and the comparison with the ACP shows what changed in 2024.