What Lifeline Phone Service Actually Covers

What Lifeline pays for and what it doesn't

Lifeline covers your monthly phone bill — either a wireless plan or a landline — and reduces what you pay by a set amount each month. The federal subsidy is currently $9.25 per month, though some states add extra money on top. That means Lifeline doesn't pay your entire bill; it lowers it. You still choose your phone company and your plan, and you still pay the difference between the subsidy and what your plan costs.

Lifeline covers the service itself: talk, text, and data if your plan includes it. It does not cover equipment like a phone handset, a SIM card, or a modem. Some phone companies throw in a free or discounted phone when you sign up for Lifeline, but that's their choice, not Lifeline's requirement. It also does not cover late fees, overage charges, or international calling — those are between you and your phone company.

You can use Lifeline with any phone company that participates in the program. Most major carriers (Verizon, AT&T, T-Mobile, US Cellular) offer it, as do many smaller regional carriers and prepaid services. The subsidy works the same way no matter which company you pick.

Key Takeaways

• Lifeline reduces your monthly phone bill by $9.25 federally, plus any state supplement, but does not cover the full cost — you pay the rest.
• The subsidy covers phone service (talk, text, data) but not equipment, late fees, overage charges, or international calls.
• You choose your own phone company from any carrier that participates in Lifeline, and the subsidy amount stays the same across all of them.
• Some phone companies offer a free or discounted phone when you enroll, but this is optional and varies by carrier.
• If your plan costs less than $9.25 per month, you pay nothing; Lifeline does not give you cash back for the unused portion.

How the monthly subsidy actually works

When you enroll in Lifeline with a phone company, that company receives the $9.25 federal subsidy directly from the program. The company then subtracts that amount from your bill before sending you an invoice. If your plan costs $35 a month, you pay $25.75. If your plan costs $12 a month, you pay $2.75.

The subsidy does not roll over or accumulate. If you use a prepaid plan and add $20 in credit one month, Lifeline still only covers $9.25 of that month's service. You cannot bank the unused portion for later.

Some states add their own money to the federal subsidy. For example, a few states provide an additional $5 to $10 per month. Your phone company will tell you whether your state has a supplement, and it will show up on your bill the same way the federal subsidy does.

What happens if you switch phone companies

You can move your Lifeline subsidy to a different phone company at any time. You do not have to wait for a contract to end or pay an early termination fee because Lifeline itself is not a contract — it is a subsidy that travels with you. When you switch, you notify the new company that you want to use Lifeline, and they verify your information with the program. The old company stops receiving the subsidy, and the new one starts.

The process usually takes a few days to a week. During that time, you may have a gap in service if you cancel your old plan before the new one is active. To avoid losing your phone number, ask the new company about porting your number before you cancel the old account.

If you are unhappy with your current plan's cost or features, switching is straightforward. Just make sure the new company participates in Lifeline before you sign up.

Lifeline with prepaid versus postpaid plans

Lifeline works with both prepaid and postpaid phone plans. With a postpaid plan, you receive a bill each month and the subsidy reduces what you owe. With a prepaid plan, you add credit to your account in advance, and the subsidy reduces the cost of that credit or the monthly service charge if the plan has one.

Prepaid plans can be cheaper to start with, especially if you use very little data or make few calls. Postpaid plans often include more data and features but cost more upfront. The Lifeline subsidy works the same either way — it lowers your monthly cost by $9.25.

Some phone companies offer Lifeline-specific plans that are designed to work well with the subsidy amount. These plans typically cost between $10 and $20 per month before the subsidy, bringing your out-of-pocket cost to $0.75 to $10.75. Ask your phone company what Lifeline plans they offer.

Data, calling, and texting limits

Lifeline itself does not set limits on how much you can call, text, or use data. Those limits come from your phone plan. A basic Lifeline plan might include 500 minutes of calling and unlimited texting with no data. A higher-cost plan might include unlimited calling and texting plus 2 or 3 gigabytes of data per month. You choose the plan that fits your needs, and Lifeline reduces the cost by $9.25.

If you go over your plan's limits, your phone company charges overage fees — Lifeline does not cover those. Some plans have unlimited calling and texting but charge per gigabyte of data used over your monthly allowance. Others cap your speed instead of charging fees. Read your plan's terms before you sign up so you know what happens if you exceed your limits.

International calling and texting are almost never included in basic Lifeline plans. If you need to call or text outside the United States, you typically have to pay extra or use a different service like WhatsApp or Skype. Some phone companies offer international add-ons for a few dollars per month.

When Lifeline ends and what you pay after

Lifeline is not permanent. You have to recertify your income and household size every year to stay enrolled. If you do not recertify by the deadline your phone company gives you, your Lifeline subsidy stops, and you start paying the full price of your plan. Some phone companies send reminders by text or email; others do not. It is your responsibility to keep track of the date.

If your income rises above the Lifeline threshold, you are no longer may be able to access and your subsidy will end. The threshold is 135% of the federal poverty line, which varies by household size. For a single person in 2024, that is roughly $1,800 per month. For a family of four, it is roughly $3,700 per month. These numbers change each year.

When your Lifeline ends, you can keep the same phone plan and phone company — you just pay the full monthly cost. You can also switch to a cheaper plan or a different company. There is no penalty for losing Lifeline; you simply go back to paying regular rates.

Frequently Asked Questions

Does Lifeline cover a phone if I don't have one?

Lifeline itself does not provide phones, but many phone companies offer a free or discounted phone when you enroll. This varies by carrier and by location. Ask your phone company what they offer before you sign up. If they do not offer a phone, you can buy one separately — used phones are often very affordable.

Can I use Lifeline on a family plan with other people?

No. Lifeline is tied to one person's income and household size. If you are on a family plan, you would need your own separate line with Lifeline, or the other people on the plan would need to enroll separately if they also meet the income threshold. Talk to your phone company about how they handle Lifeline on shared plans.

What if my phone company raises their prices?

The Lifeline subsidy stays at $9.25 per month (plus any state supplement). If your phone company raises their plan price, your out-of-pocket cost goes up, but the subsidy does not increase. You can switch to a cheaper plan or a different company to lower your bill.

Do I lose Lifeline if I miss a payment?

Lifeline itself does not end if you miss a payment, but your phone service will be suspended or disconnected by your phone company, just as it would be without Lifeline. Once you pay what you owe, your service resumes and Lifeline continues. Contact your phone company about payment plans if you are having trouble paying your bill.

Can I use Lifeline with a phone I already own?

Yes. Lifeline works with any phone that is compatible with your phone company's network, whether you bought it new, used, or received it as a gift. You do not have to buy a new phone to use Lifeline.