Ellington

"For those who are struggling, we want you to have something infinitely more valuable than a free phone. We want you to have a job and a pathway to success."

—Kentucky Sen. Rand Paul in his response the President Barack Obama's 2013 State of the Union address.

Why it stinks: While the federal government provides subsidized phone service for low-income people, some of the programs have been around since 1984--nearly a quarter century before Obama took office.

The federal Lifeline program has reimbursed phone companies $9.25 per month to subsidize low-income customers since 1984. Telecom fees that are part of every phone bill fund the program, fulfilling FCC policy of providing universal access, according to FactCheck.com. In 2008, the program was expanded for cell phone usage. Also in 2008, TracFone Wireless started its SafeLink Wireless program, which offers up to 250 free minutes of cell phone use each month to low-income users.

Such programs arose from the 1996 Telecommunications Act mandate to "ensure all Americans, including low-income consumers and those who live in rural, insular, high cost areas, shall have affordable service and (to) help to connect eligible schools, libraries and rural health-care providers to the global telecommunications network."