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    How the FCC is trying to make internet harder for low-income people

    Smart WealthhabitsBy Smart WealthhabitsMarch 13, 2026No Comments3 Mins Read
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    How the FCC is trying to make internet harder for low-income people
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    Editor’s note: This story comes CableTV.com.

    Recently, the Federal Communications Commission (FCC) voted Consider adding additional eligibility restrictions to your Lifeline Internet Subsidy Program.

    The Lifeline program, which provides a $9.25 monthly internet and telephone credit to low-income households, could potentially see some of the following changes:

    • Formally restricting Lifeline to US citizens.
    • A five-year waiting period is required for eligible non-citizens or those undergoing the immigration approval process.
    • Applicants need to enter their full Social Security number instead of its last four digits.
    • Changing eligibility requirements to a “1-per-address” rule that could affect multi-family households.

    The FCC argues that these changes are designed to root out financial ruin from the Lifeline program. In its news release, the FCC cited internal details from January Investigation It found that the program lost $10.5 million from 2020 to 2025 due to funds being deposited or released twice to deceased individuals.

    That said, this total fee is less than 1% of Lifeline’s annual budget, which was allocated $2.9 billion for 2026 alone. Similarly, administrative reform was only a fraction of the FCC’s proposed lifeline changes, which focused heavily on citizenship verification.

    Although these proposed updates potentially have a long way to go before they become policy, industry analysts argue that the FCC’s changes will create additional barriers for low-income families who need internet access.

    How proposed Lifeline changes affect low-income internet access

    Lifeline is already a relatively underutilized program for several reasons. FCC-affiliated Universal Service Administrative Company It is estimated that only 21% of eligible applicants will enroll in Lifeline during 2025.

    Likewise, Lifeline’s base $9.25 monthly credit doesn’t come close to covering most providers’ standard Internet plans, which start at around $50 per month. Instead, most Lifeline customers have to settle for exclusivity. low income internet plans With speeds less than 100Mbps that makes gaming or high-definition streaming difficult.

    multiple industry groups The FCC’s vote was criticized as a way to make online access harder for legal immigrants and low-income families.

    “Everyone deserves affordable phone and Internet service,” Jenna Leventoff, senior policy adviser at the American Civil Liberties Union, said in a statement. “We are concerned that the FCC’s proposals to limit Lifeline eligibility, increase data collection about program users, and phase out phone-only service will further widen the digital divide. We urge the FCC to reconsider these harmful proposals so everyone can stay connected.”

    All these factors suggest that the biggest impact of the FCC’s proposed changes will be to make it even more difficult 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 an eligible 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 families.

    FCC harder internet lowincome people
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