California Collected $3.8M for 94,000 Dead People on Federal Subsidy Program

FCC revokes state's authority to manage verification after uncovering widespread fraud in Lifeline program

Published on Feb. 17, 2026

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The Federal Communications Commission (FCC) uncovered a fraud where California collected $3.8 million in federal funds to provide phone and internet service to 94,000 dead people through the Lifeline program, which subsidizes communication services for low-income Americans. The FCC described this as "fraudulent conduct" and has revoked California's authority to manage the verification process for the program.

Why it matters

This case highlights concerns about waste, fraud, and abuse in federal programs, as well as questions about the integrity of California's administrative systems and data management practices. It raises broader issues around the need for strong oversight and verification to ensure taxpayer funds are used appropriately and intended beneficiaries are properly served.

The details

According to the FCC's inspector general, California pulled in $3.8 million between 2020 and 2025 through the Lifeline program, which accounts for more than 80% of the improper payments identified in opt-out states. Of the 116,808 deceased individuals enrolled, roughly two-thirds died after enrollment, 19% may have died before enrollment, and 15% were confirmed dead prior to being claimed.

  • The improper payments were collected between 2020 and 2025.
  • The FCC revoked California's authority to manage Lifeline program verification in 2026.

The players

Lifeline Program

A federal program that provides subsidies for phone and internet service to low-income Americans.

Gavin Newsom

The Governor of California during the time period when the improper payments were collected.

Brendan Carr

The Chair of the Federal Communications Commission.

Donald Trump

The former President of the United States who consistently argued for tighter controls and more aggressive oversight of federal programs.

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What they’re saying

“'Gavin Newsom's California was by far the worst offender of these opt-out states'”

— Brendan Carr, FCC Chair (X)

What’s next

The FCC has revoked California's authority to manage verification for the Lifeline program, and the state will no longer be able to oversee eligibility determinations.

The takeaway

This case highlights the need for stronger oversight and verification mechanisms in federal programs to prevent waste, fraud, and abuse, especially when states are given flexibility to manage program administration. It raises questions about the integrity of California's data management practices and the state's willingness to prioritize accuracy over administrative convenience.