The US Federal Communications Commission (FCC) on Thursday started reworking on its Lifeline Assistance and Link-Up America programs to offer telephone subsidies to low-income people.

The Lifeline Assistance and Link-Up America programs, which were introduced in 1985, are currently offering subsidized monthly telephone installation & service for poor residents in the country.

But, the FCC is now advancing to receive public comments on its new plan that proposes to include bundled telecom and broadband services in the programs.

In addition, the rulemaking is finding new ways to reduce waste in the programs. It is also asking whether the budgets for the programs should be capped or not. The combined budget for the two programs has already jumped from $162 million in 1997 to $1.3 billion last year.

But, Commissioner Mignon Clyburn said, "We would be on a fool's errand if we think we can address both the voice and the broadband requirements [of low-income residents] while simultaneously capping the fund," she said.

Speaking on the topic, Clyburn added that she hoped eradication of waste & fraud in the running programs would bring about cost savings that would allow the FCC to offer broadband subsidies.