WASHINGTON, Sept. 2, 2025 \u2013 California is testing whether its long-running LifeLine phone subsidy can help low-income households pay for broadband too.<\/p>\n
In an announcement<\/a> Thursday, the California Public Utilities Commission detailed a new three-year pilot that expands the state\u2019s LifeLine program<\/a> beyond voice.<\/p>\n The pilot offers participants a $20 monthly subsidy for standalone broadband service, $30 for broadband bundled with a phone line from the same provider, and up to $39 once a year to cover the cost of a new connection.<\/p>\n To qualify, broadband service must meet minimum standards of 100 * 20 Megabits per second (Mbps) and offer at least 1,280 GB of data each month, unless such service isn\u2019t technically feasible or the plan qualifies as a low-cost option.<\/p>\n \u201cBroadband is essential for work, school, health, and safety,\u201d said CPUC President Alice Reynolds, in a release<\/a>. \u201cThis pilot program will play a key role in achieving the goal of connecting Californians.\u201d<\/p>\n According to data from a recently expired federal broadband affordability subsidy, the Affordable Connectivity Program, a total of 5,844,797 California households with incomes at or below 200 percent of federal poverty guidelines were eligible for broadband assistance. That threshold equates to an annual income of about $31,300 for a single person and $64,300 for a family of four in 2025.<\/p>\n That affordability gap has fueled policymakers to expand subsidies and lower broadband prices.<\/p>\n During the 2025 legislative session in Sacramento, Assemblymember Tasha Boerner, D-Encinitas, floated the California Affordable Home Internet Act<\/a>, which would\u2019ve required large internet providers to offer 100 * 20 Mbps broadband plans for just $15\/month to low-income households that receive public assistance \u2013 modeling New York\u2019s successful effort.<\/p>\n The bill passed the Assembly 52\u201317 in June but then ran into pushback, and was ultimately gutted in committee following heavy telecom industry lobbying<\/a>.<\/p>\n