Here is a current link to the phones in question.
http://obamaphone.net/
The program is old. Very. Initially started for folks with land line issues and progressed to cell phones under GW.
Any program, over seen by the Feds is wrought with fraud. Welfare, medicare (google durable medical goods fraud), food stamps, WIC, EBT, SS, etc..... This program is simply one that someone has decided to point out.
For the record approx 35% of Americans qualify for this phone. Started by RR, enhanced by Clinton, cell phones added under GB and tracphones came online with Obama.
No politician, R or D, ants to get tough on the issue. Hell some oppose an actual Govt issued photo ID to vote. Most are against drug testing for those on welfare or getting unemployment benefits. IMO, you are receiving federal funds, you are now a federal employee. Subject to the same requirements. Think it infringes on "your rights", don't accept the fed money. Selling your EBT card or WIC for cash to strangers, easy fix. Photo on voucher with thumb print verification much like banks when cashing checks. You are not in the system associated with card you can't use it. Food stamps at 4-1 at the local convenience store etc....Phone fraud, a national database as it is FCC funding (Fed monies) then enter the name, DOB, SSN etc of the person getting the phone. You get one. Lose it, go hit CVS and buy the next one on your dime.
It comes down to hard choices. Is America ready to make them.