$2.9 billion Lifeline phone and internet subsidy program faces major overhaul after regulators found millions of dollars went to subscribers who had died.

The Federal Communications Commission (FCC) voted to implement stricter verification procedures to combat improper payments, a move prompted by an investigation revealing significant waste. The Lifeline program, designed to help low-income households access essential communications services, has been plagued by fraud and inefficiency, with funds being disbursed to individuals who were no longer alive or otherwise ineligible.

The new rules aim to significantly tighten the vetting process for both applicants and existing subscribers, requiring more robust proof of eligibility and potentially implementing automated systems to flag suspicious activity. This regulatory clampdown represents a major shift for carriers participating in the program, who will face increased administrative burdens and scrutiny. The FCC's action signals a commitment to ensuring taxpayer funds are used effectively, though it may also lead to some eligible low-income households temporarily losing service if verification fails.

The overhaul underscores the FCC's growing focus on program integrity following years of criticism over Lifeline's management and cost overruns.