Consumers are being asked to pay more for the same product because the federal government’s Lifeline program provides coverage for up to $2,000 in an emergency.
Agency officials said in a statement that the Lifeline funding will help provide affordable, nationwide disaster coverage for individuals and small businesses who need help.
“The federal government is making lifesaving choices, including funding Lifeline and providing Lifeline assistance to the more than 300,000 Americans who rely on Lifeline for assistance in the event of an emergency,” the statement said.
The Lifeline subsidy comes in response to the ongoing wildfires that have devastated communities in northern California, Colorado, and Utah.
Federal officials have said that the funding would cover some costs for consumers, but that the money would be used to help those affected by wildfires as well as help those in need.
Officials said the federal funds would also be used for wildfire assistance and other disaster relief.
In California, the state is trying to help residents of communities impacted by the wildfires by providing free flood insurance to people and businesses in the state, as well.
A spokeswoman for Gov.
Gavin Newsom, who is running for reelection, said the state’s efforts are “in the process of being finalized and approved” and would be announced shortly.