....The rapid growth of the program has continued since then. In 2011, the FCC estimated the cost(page 153) of the program would be $2.1 billion and said it would reach $3.3 billion by 2014 absent major reforms. The FCC also found that part of the problem with the program was rampant fraud:
[O]ur ongoing oversight has revealed that a substantial number of subscribers are receiving duplicative Lifeline support, which includes individuals receiving two or more Lifeline benefits from ETCs as well as two or more individuals in a household receiving benefits from multiple ETCs.
How bad is the fraud? A survey conducted by the FCC across 17 states and territories found that, on average, 9% of phone recipientswere ineligible (page 243). In some states like Alabama, New Hampshire, and West Virginia, the ineligibility rate was 18-19%. And all of that is based on a survey to which 27% of users refused to respond to questions....
http://www.breitbart.com/Big-Govern...Phones-Costing-Taxpayers-2-1-Billion-Per-Year