A program called Lifeline provides free phones and free monthly minutes to anyone on food stamps, WIC, Medicaid, Head Start, and several other government programs. The program's costs are covered by a tax included on every monthly phone bill called the Universal Service Charge.In 2011, the FCC estimated the cost of the program would be $2.1 billion and said it would reach $3.3 billion by 2014. The FCC is discussing making broadband service part of the Lifeline program, therefore taxpayers could soon be paying for smartphone features on these free government phones.
Information from:
http://www.breitbart.com/Big-Government/2012/06/13/Spending-Off-the-Hook...