FCC's Prison Phone Rate Caps Were Delayed and Then Raised by 83%, Keeping Families Paying Up to $1/Minute
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Incarcerated people and their families pay up to $1 per minute for phone calls — rates that can reach $5 for a 2-minute call — charged by a handful of telecom companies (primarily Securus Technologies and Global Tel*Link/ViaPath) that hold monopoly contracts with correctional facilities. Why it matters: families cannot maintain the regular contact that research shows reduces recidivism by up to 13%, so children of incarcerated parents (2.7 million children in the U.S.) lose consistent connection with their parent, so family bonds deteriorate during sentences averaging 2-5 years, so returning citizens face weakened support networks at release which is the single strongest predictor of successful reentry, so recidivism increases and taxpayers pay $35,000-$132,000 per year to re-incarcerate people who might have stayed out with stronger family ties. The structural root cause is that correctional facilities receive revenue-sharing kickbacks (often 40-60% commissions) from telecom providers, creating a perverse incentive for facilities to award contracts to the highest bidder rather than the lowest-cost provider, and the FCC's July 2024 unanimous vote to cap rates was postponed in 2025, with revised caps actually raising prices by up to 83% compared to the originally announced rates.
Evidence
Phone calls cost up to $1/minute, with some calls reaching $5 for 2 minutes (Prison Policy Initiative). In July 2024, the FCC voted unanimously to lower rates under the Martha Wright-Reed Just and Reasonable Communications Act. However, in 2025, the FCC announced a two-year postponement of the rules. When revised caps were issued, they hiked prices by up to 83% compared to the 2024 rates (Prison Policy Initiative, October 2025). Senator Cory Booker and Senator Elizabeth Warren introduced the Families Over Fees Act of 2024 targeting predatory prison fees. Worth Rises documented that prison telecom is a $1.4 billion/year industry dominated by two companies. Commissary sales in Illinois and Massachusetts exceeded $1,000 per incarcerated person per year.