The Federal Communications Commission has initiated formal investigations into several Lifeline providers operating in California and other states that previously opted out of the federal eligibility verification system. These probes focus on potential violations of program rules, particularly the enrollment of deceased individuals and duplicate subscribers in the Lifeline program, which offers discounted phone and internet services to qualifying low-income Americans. This is one part of planned changes to Lifeline that were passed today by the FCC.
The FCC’s Enforcement Bureau took the initial step by issuing Letters of Inquiry to an initial group of providers in these opt-out jurisdictions. The letters seek detailed information to determine whether the companies improperly claimed federal subsidies for ineligible subscribers. Initial reports indicate that some providers may have continued to receive reimbursements for services linked to individuals who had passed away or for multiple accounts tied to the same household, contravening program requirements designed to prevent such overlaps and improper payments.
“I’ll reiterate: my position is that the government should not be spending your money to provide phone and internet service to dead people,” said FCC Chairman Brendan Carr. “In keeping with this apparently controversial stance, the FCC is cracking down on waste, fraud, and abuse by launching investigations into the apparent enrollment of dead people and duplicate subscribers in this critical connectivity program. California’s efforts to get around federal rules to prevent misuse of federal dollars has already resulted in their being kicked out of the ‘opt-out’ program and now we are launching investigations into the companies that may be facilitating this type of waste, fraud and abuse.”
Carr went on to say, “However, a recent Inspector General advisory identified serious integrity issues in the Lifeline program, including benefits being claimed for dead people and others who are not lawfully eligible under federal law. In just three “opt-out” states alone—states where the National Verifier was not used for eligibility—the Inspector General found that nearly $5 million in federal dollars went to provide phone or Internet service to more than 116,000 dead people. Over 80% of those scams took place in California alone.”
This action builds on a recent advisory from the FCC’s Office of Inspector General, which highlighted significant issues with deceased and duplicate subscribers in the Lifeline program across the three states that had maintained their own verification processes. The advisory revealed that providers in those states received nearly $5 million in federal funds over several years for more than 116,000 deceased subscribers, with the overwhelming majority of cases occurring in California. The findings underscored concerns about lax eligibility checks allowing subsidies to continue after a subscriber’s death, often for months, rather than prompt deactivation.
In November 2025, the FCC revoked California’s opt-out status, mandating that applicants in the state now use the National Verifier—the federal system’s centralized tool for confirming eligibility—instead of the state’s separate standards. This change aimed to align California with the verification protocols applied in most other states and to reduce opportunities for misuse of federal dollars. The decision followed evidence that the state’s approach had contributed disproportionately to improper enrollments, including those involving deceased individuals.
The investigations draw on both the Enforcement Bureau’s standard tools and the insights from the Inspector General’s advisory to examine provider compliance. They represent part of a broader effort to address waste, fraud, and abuse in the program, which distributes nearly $1 billion annually to support connectivity for low-income households.
FCC Chairman Brendan Carr has emphasized the importance of safeguarding taxpayer funds, describing the probes as a necessary crackdown on apparent misconduct. He noted that California’s prior efforts to bypass federal safeguards had already led to the loss of its opt-out privileges, and the current actions target companies that may have enabled ongoing issues.
Looking ahead, the FCC plans to consider significant reforms to Lifeline rules at its upcoming Open Meeting. A proposed Notice of Rulemaking seeks to strengthen program integrity through enhanced verification measures, stricter oversight of providers, and additional safeguards to ensure subsidies reach only eligible living recipients. These changes would aim to prevent future occurrences of improper payments while preserving the program’s core mission of bridging the digital divide for those in need.
The developments highlight ongoing tensions between federal oversight and state-level administration of shared programs, as well as the challenges of maintaining accurate subscriber records in a large-scale subsidy initiative. As the investigations progress, the FCC will gather responses from the targeted providers and determine any further enforcement steps, potentially including penalties or corrective actions to recover misused funds and reinforce compliance.
Please add Cord Cutters News as a source for your Google News feed HERE. Please follow us on Facebook and X for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.