A subsidy is only as good as the price it is applied to. This page puts the $9.25 against real plan pricing, line by line, so you can work out before you apply whether your bill ends at zero or somewhere else.
What the discount attaches to
Lifeline reduces the monthly service charge on exactly one service. Phone, or internet, or a bundle of the two. Not a second line, not two separate accounts, not phone for you and internet for the household.
Within that service, it applies to the recurring charge and nothing else. Specifically, it does not touch:
- Device payments, if you are financing a handset
- Taxes and regulatory surcharges
- Late fees and reconnection fees
- International calling and roaming
- Any add-on bought separately, such as extra data
This is why someone promised a free phone can still receive a bill for three or four dollars. The service line reads zero and the tax line does not. That is the program working as designed, not a bait and switch.
The arithmetic that decides your bill
Carriers approved for this program price their entry plans with the subsidy in mind, and they land in three rough tiers.
Built to hit zero. A plan priced at or just under $9.25, usually with a modest data allowance. The discount swallows it and you pay only taxes. This is the configuration behind every “free phone service” headline.
Built to be cheap, not free. A plan in the $20 to $30 range with much more data. After the discount you pay the balance. For a heavy data user this is often the better deal in absolute terms, even though the headline is worse.
Not built for this at all. A standard retail plan where $9.25 is a rounding error. Some carriers will apply the discount here if you ask, but it is not where the value is.
Decide which tier you want before you shop, because carrier pages are designed to show you the headline and not the arithmetic.
Where the free phone comes from
No agency ships handsets. When a device is included, it is the carrier’s own acquisition offer, the same tactic as a free phone on any ordinary plan, pointed at a different customer.
In practice that means an entry-level Android, varying by carrier and by state, changing without notice. Some carriers charge a copay for a better model. Some include nothing and expect you to bring a phone you already own.
Bringing your own is frequently the better move. A phone you already like, on a plan that costs you nothing, beats a free handset you did not choose — provided it is unlocked and supports the network’s bands, which the carrier’s compatibility checker will confirm in about a minute.
The ACP hangover
From 2021 to 2024 a second program ran alongside this one. The Affordable Connectivity Program gave up to $30 a month off internet, $75 on Tribal lands, plus a one-time device discount. It ran out of money and ended in June 2024.
Its ghost is everywhere. Pages written during those years still rank, still quote $30, and still use the old eligibility threshold of 200% of the Federal Poverty Guidelines. Lifeline uses 135%. If a page tells you that you qualify at 200%, it is reading from a program that no longer exists, and you will find out at the application screen.
The 2026 income ceilings
For the 48 contiguous states, D.C., and the territories:
- 1 person: $21,546
- 2 people: $29,214
- 3 people: $36,882
- 4 people: $44,550
Each additional person adds roughly $7,668. Alaska and Hawaii use higher figures.
Most people never need this table, because qualifying through a program you already receive is faster and easier to prove than qualifying through income.
One per household, and what that costs
Only one discount is allowed per household, and a household is everyone who lives together and shares income and expenses. Not per person. Not per line.
For a single adult this is irrelevant. For a family of four under one roof, it means one line at $0 and three lines at full price — which changes the value of the whole exercise and is worth calculating before anyone fills in a form.
The obligations attached
Three conditions keep the benefit alive, and all three are enforced automatically.
If you pay nothing out of pocket, you must use the service at least once every 30 days, or you get a 15-day notice before shutoff. Once a year USAC recertifies you — the state does it in Oregon and Texas. And you have 30 days to report a move, a loss of eligibility, or someone else in the household claiming the discount.
What is on the last page
How Lifeline carriers compare against ordinary budget prepaid plans, where each one wins, and the situations where the paperwork is not worth the saving.
You will remain on the same website.
Legal Notice. We will never ask for payment to unlock any product, application, or offer. This site is not affiliated with USAC, the FCC, or any government agency, and it does not process applications. Program terms are set by the government and by participating carriers and can change — confirm on the official site before you act.
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Editorial Note. Program figures in this article come from the Universal Service Administrative Company, which administers Lifeline under FCC oversight. Figures are current as of publication and can change.