California: Millions Paid for Dead People’s Services

Millions in Federal Funds Misspent on Phone & Internet for Deceased Californians

A new report from the Federal Communications Commission (FCC) reveals that California received $3.8 million in federal funds between 2020 and 2025 to cover phone and internet service for approximately 94,000 individuals who were already deceased.

The funds were distributed through the federal Lifeline program, a nearly $1 billion annual initiative designed to subsidize dialog services for low-income Americans. The FCC’s inspector general uncovered the widespread issue, highlighting a critically important lapse in verification processes within the state.

According to the FCC, the improper payments occurred under the administration of Governor Gavin Newsom. Of the three states identified in the report, California accounted for over 80% of the payments made for deceased individuals, receiving nearly $5 million in reimbursements from the FCC for these cases between 2020 and 2025.

A post from FCC Chair Brendan Carr on X,formerly known as Twitter,stated,”Gavin Newsom’s California was by far the worst offender of these opt-out states.” Carr further explained that the FCC has revoked California’s authority to manage the verification process for program recipients.

https://twitter.com/BrendanCarrFCC/status/1778888987520004399

Did you know? – The Lifeline program has existed since 1985, originally designed to provide affordable phone service to low-income households. It was later expanded to include internet access.

The report details that of the 116,808 deceased individuals identified across “opt-out” states – those states that oversee their own verification procedures – roughly two-thirds (77,446) died after being enrolled in the Lifeline program. An additional 19% (22,588) may have been deceased before enrollment, while 15% (16,774) were confirmed dead prior to any claims being made. The FCC asserts that these findings demonstrate “fraudulent conduct” related to the enrollment of individuals who were no longer living.

The California Public Utilities Commission (CPUC), which oversees the Lifeline program within the state, issued a statement acknowledging that the FCC recognizes the majority of California subscribers were eligible and enrolled while alive. The CPUC contends that any improper payments are primarily attributable to delays between the time of death and account closure, rather than failures in the initial enrollment process.

“We take program integrity seriously,” the statement reads. “But it’s misleading – and political – to single out California. This is a nationwide issue, not a California scandal.”

Despite the CPUC’s defense, the FCC’s findings raise serious questions about oversight and accountability within the Lifeline program and underscore the need for improved verification measures to prevent future misuse of taxpayer dollars.

Pro tip – Individuals can report suspected fraud within the Lifeline program to the FCC’s Office of Inspector General. Reporting helps ensure program funds are used appropriately.

Why did this happen? The FCC report indicates a failure in verification processes within California’s administration of the Lifeline program, leading to payments for services used by deceased individuals. The FCC alleges fraudulent conduct, while the CPUC attributes the issue to delays in account closures.

Who was involved? The key players are the FCC, the FCC’s Inspector General, Governor Gavin Newsom’s administration in california, the California Public Utilities Commission (CPUC), and the approximately 94,000 deceased individuals whose services were subsidized.

What occurred? Between 2020 and 2025, California received $3.8 million in federal lifeline funds for services provided to deceased individuals. The FCC identified 116,808 deceased