[FOXNEWS] Under the program, there have been reports of multiple phones going to one person, cell phones being sent to underage residents and perhaps most shocking --

A recent audit of the program by the Federal Communications Commission revealed that 41 percent of the nearly 6 million subscribers did not meet the requirements

phones being sent to the deceased.

The free phone program is open to those who meet federal poverty guidelines, or are on food stamps, Medicaid or other federal assistance programs. Under the rules, only one Lifeline subscriber is allowed per household. However, a recent audit of the program by the Federal Communications Commission revealed that 41 percent of the nearly 6 million subscribers did not meet the requirements.

The FCC defended the program to FoxNews.com and says it has helped tens of millions of low-income Americans afford basic phone options. But even they admit the program has holes. Last year the agency tightened the rules for the program and required carriers to verify existing members were eligible. The agency estimated that 15 percent of its users would be weeded out under the new process. The FCC also said its new rules have eliminated more than 1.1 million duplicate subscriptions and saved $214 million in 2012.