1. How much does it cost the taxpayer? It seems it could almost be a Tracphone marketing concept. What if its basically price segmentation with a veneer of subsidy to keep normal people from using it? Like, let's charge the rich guy 25 bucks, because he can afford it, but the poor guy gets a cheaper rate. Let me know how much it costs the taxpayer. Maybe its really cheap.
2. Cell phones / phone lines in general can spur economic growth. (At least in poor countries where fisherman use them to determine where to sell their catch, etc.) I would bet this effect to some extent applies to the US and to low-income "income eligible" households as well. I was not joking about the ne'er-do-wells using them to find jobs.
Also, note that I have previously complained that US cell phone rates are fairly steep - US$ 69.99 for a single line from AT&T for a barebones package vs. 10 bucks in Taiwan. My mother already uses Tracphone and it is far less expensive. In fact, I wish I had opted for it myself. Damn teenagers and their needs for mobile internet access! So I could see this providing some savings to a needy but thrifty household and keep them available for the normal job market.
3. Maybe they just tax I-phone users to pay for this. Those people clearly have too much money and will not miss the money for a couple of stupid apps anyways.
4. The built-in bugging and GPS functions will make sure these are not used by drug dealers, illegal aliens, or anti-government malcontents. Seriously, you don't show up for that second TB vaccination shot, we track you down via your phone. OK, maybe not.
5. Worst evil thought I have ever had: Sell these phone numbers to telemarketers to pay for the phone and minutes. OK, shoot me now. Damn, that is completely evil. And would result in a complete elimination of point 2.

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