Why Prison Phone Calls Are So Expensive: The Complete Explanation

When a correctional facility decides which phone company to use, it issues a contract to one provider for an exclusive agreement. The provider installs phone equipment throughout the facility, manages the calling system, and handles billing. In exchange for this exclusive contract, the provider pays the facility a share of the revenue generated from calls - this payment is called a site commission.

The site commission is the root cause of high prison phone rates. Providers competing for contracts offer higher and higher commissions to win the business. To cover these commission payments and still generate profit, providers charge higher rates to callers. The facility benefits financially from the arrangement while the families making calls bear the cost.

Commissions have historically been very high - in some cases reaching 60 percent or more of call revenue going back to the facility. This means that for every dollar a family spends on a prison phone call, more than half was being paid to the facility as a commission before any profit was taken by the phone company.

This system created an incentive structure where facilities were financially motivated to choose the provider offering the highest commission rather than the one offering the best service or lowest cost to families. Families had no choice in the matter - they had to use whatever provider held the contract.

The Federal Communications Commission has regulatory authority over telephone services and has been working to address prison phone rates for many years. The process has been slow due to legal challenges from phone providers and limitations on the FCC authority over in-state calls.

For interstate calls, calls made between two different states, the FCC has established rate caps that limit how much providers can charge. Under current FCC rules in effect as of 2026, the rate caps limit charges to $0.11 per minute for calls from prisons and $0.13 per minute for calls from jails for interstate calls. These caps replaced the original 2024 reform, which had set the prison rate at $0.06 per minute before the FCC voted in October 2025 to raise it to $0.11 per minute. The FCC also prohibited certain add-on fees for interstate calls.

For in-state calls - calls within the same state - the FCC authority was legally challenged for years. Providers argued that in-state call rates were outside federal jurisdiction and subject only to state regulation. This left in-state rates largely unregulated at the federal level for a long period, allowing them to remain much higher than interstate rates in many states.

The FCC has continued to expand its regulations to address in-state rates and to extend its rules to cover video calling services, which had previously been unregulated and were often priced even higher than phone calls. The regulatory landscape continues to evolve as advocates push for broader rate caps and elimination of commissions entirely.

Prison phone rates vary significantly depending on the state, the type of facility, and the specific contract in place. Some states have taken action beyond federal requirements to reduce costs for families. A small number of states and counties have eliminated commissions entirely and now offer free or very low-cost calls.

States and counties that have moved toward free or low-cost calls include New York City, which eliminated charges for calls from city jails, San Francisco, and a growing number of county systems where local governments decided to absorb the cost of communication rather than charge families.

In states with no additional regulation beyond federal minimums, in-state rates can still be significantly higher than the federal interstate cap. Families calling a loved one in a facility within the same state may pay more per minute than families calling across state lines, which is counterintuitive but reflects the regulatory gap that existed for years.

The specific rate you pay depends on the facility contract currently in place. Rates change when contracts expire and are renegotiated. A rate that applied last year may be different from the rate today if a new contract was awarded to a different provider or at different terms.

The per-minute rate is not always the full cost of a prison phone call. Providers have historically charged a variety of additional fees that increased the total bill significantly. These included connection fees charged at the start of every call regardless of length, account setup fees, account maintenance fees, fees for adding money to an account, and fees for receiving paper statements.

The FCC regulations have prohibited many of these additional fees for interstate calls. Connection fees, account setup fees, and certain other add-on charges are no longer allowed for calls between states under FCC rules. However, some fees may still apply to in-state calls depending on state regulations.

Payment processing fees are still common. When families add money to a prepaid phone account, the provider typically charges a fee for the transaction. These fees vary by provider and payment method. Paying by credit card may incur a higher fee than paying by another method. Always check the fee schedule before adding funds.

Inactivity fees charged for accounts that have not been used in a certain period are another cost families may encounter. If you do not receive calls for an extended time and your account balance is reduced by inactivity fees, contact the provider customer service to request a fee waiver or to close the account and request a refund of any remaining balance.

Use a prepaid account rather than collect calls. Prepaid calling accounts consistently offer lower per-minute rates than collect calls billed to your phone line. Setting up a prepaid account with the facility phone provider before the first call will save money on every subsequent call.

Add money in larger amounts when possible. Some providers charge a flat transaction fee per deposit regardless of the amount added. Adding a larger amount less frequently means you pay the transaction fee less often, reducing your overall cost per minute.

Check whether your state has any rate assistance programs. Some states have programs that help low-income families access prison phone services at reduced rates. Contact your state Department of Corrections or a local prison family advocacy organization to ask about any assistance available in your state.

Consider video visits as an alternative for some calls. Video visits are sometimes cheaper per minute than phone calls at certain facilities, especially if the facility offers free or reduced-cost video sessions. Compare the cost of phone calls versus video visits at your specific facility.

Stay informed about rate changes. Contracts expire and new ones are awarded. When a facility switches providers or a new contract is negotiated, rates may change - sometimes significantly lower. Check your provider account periodically for any rate change notifications.

The issue of prison phone costs has attracted significant advocacy attention over the past two decades. Organizations including the Prison Policy Initiative, the Worth Rises advocacy group, and various civil rights organizations have pushed for regulatory reform at both the federal and state level.

The campaign for lower prison phone rates has achieved meaningful progress. The FCC rate caps for interstate calls were a direct result of sustained advocacy. The expansion of those rules to cover in-state calls and video services represented further progress. The movement toward free calls in some jurisdictions reflects what advocates argue should be the standard everywhere.

Advocates argue that charging families for communication with incarcerated people is counterproductive to public safety. Research shows that maintaining family connections reduces recidivism - the rate at which released people return to prison. If high phone costs reduce contact, the argument goes, they ultimately cost society more than they save.

The reform effort is ongoing. Families who want to support this work can contact their elected representatives, support advocacy organizations working on this issue, and share their personal experiences with the cost of staying connected.

In July 2024, the Federal Communications Commission approved landmark rules that dramatically cut inmate phone call rates across the United States. Before these rules, a single 15-minute phone call could cost a family as much as $11.35 at a large jail. Under the 2024 FCC caps, that same call cost just $0.90, and the FCC estimated that families, inmates, and friends would save approximately $386 million every year as a result. However, in October 2025 the FCC voted 2-1 to raise the rate caps again after pushback from the corrections industry and phone providers, so the actual savings families see today are smaller than the FCC originally projected.

The rate caps currently in force, as revised in October 2025, set a maximum of $0.11 per minute for calls at prisons, $0.10 per minute for large jails, $0.12 per minute for medium-sized jails, $0.13 per minute for small jails, and $0.15 to $0.19 per minute for very small jails. These replaced the lower rates set in 2024, which had capped calls at $0.06 to $0.12 per minute across the same facility tiers. These are the maximum rates providers are allowed to charge for interstate calls, calls made between two different states. In-state call rates are also regulated under the expanded FCC authority.

Video call rates were capped for the first time under the 2024 rules, at $0.16 per minute for prisons and between $0.11 and $0.25 per minute for jails depending on size. Before this, video calls were completely unregulated and often priced even higher than voice calls. The October 2025 revision raised these caps as well, to $0.25 per minute for prisons and between $0.19 and $0.44 per minute for jails depending on size. This change affects millions of families who rely on video visits as an alternative to expensive phone calls.

The FCC rules also eliminated many of the additional fees that providers had historically used to increase revenue beyond the per-minute rate. Connection fees, account setup fees, and certain other charges are now prohibited for interstate calls. This means the rate you see per minute is much closer to the actual total cost of the call than it was before the rule changes.

Despite the new FCC rules, some families are still experiencing high costs. There are several reasons this can happen. First, some providers and correctional facilities sought waivers or delays in implementing the new rules, arguing that the rate reductions created financial hardship. The FCC granted some temporary waivers, meaning the new rates may not have taken effect immediately at every facility.

Second, the FCC rules apply to interstate calls, calls between two states, more straightforwardly than to in-state calls. The regulatory process for in-state calls involved additional legal steps and timelines. Some families calling a loved one within the same state may have experienced slower rate reductions depending on their state and facility.

Third, some providers use account fees, payment processing fees, and minimum balance requirements that add to the effective cost even when per-minute rates are reduced. Always read the full fee schedule for your specific provider and facility before adding funds to your account. If you believe you are being charged rates higher than the FCC caps, you can file a complaint directly with the FCC at fcc.gov.

A growing number of states and counties have gone beyond the FCC minimums and now offer free phone calls to incarcerated people and their families. New York City was one of the first major jurisdictions to eliminate charges for calls from city jails. San Francisco, Los Angeles, and several other counties followed with their own free call programs.

At the state level, several states have passed legislation requiring free or significantly reduced cost calls at state-operated facilities. These programs typically work by having the state government absorb the cost of calls rather than passing it on to families. Advocates argue this model reduces recidivism by keeping family connections stronger and ultimately saves money for the state through reduced reincarceration costs.

To find out whether your loved one's facility offers free or reduced cost calls, contact the facility directly or check the state Department of Corrections website. Free call programs are still relatively uncommon at private facilities and smaller county jails, where the financial incentives to maintain paid call systems remain strong.

If you believe a prison phone provider is charging you rates above the FCC caps, you have the right to file a complaint. The FCC accepts complaints from consumers at fcc.gov/consumers/guides/filing-informal-complaint. You can also contact your state public utilities commission, which may have additional authority over in-state call rates.

When filing a complaint, document the specific charges you were billed, the facility where your loved one is housed, the provider name, and the dates of the calls in question. The more specific your documentation, the more effectively regulators can investigate the issue.

Prison advocacy organizations such as the Prison Policy Initiative and Worth Rises also track provider compliance with FCC rules and can provide guidance on filing complaints. These organizations have been at the forefront of prison phone rate reform and can connect families with additional resources if standard complaint processes do not resolve the issue.

Even with improved FCC regulations, the cost of prison phone calls can add up significantly for families who receive calls regularly. Using a prepaid account through the facility phone provider instead of accepting collect calls is the single most effective way to reduce your per-minute cost. Prepaid rates are consistently lower than collect call rates at every provider.

When adding funds to your account, deposit larger amounts less frequently. Most providers charge a flat transaction fee each time you add money, regardless of the amount deposited. Adding $50 once costs the same flat fee as adding $10 five times, but you pay the fee only once with the larger deposit.

Compare the cost of phone calls versus video visits at your specific facility. In some cases video visits are now cheaper per minute than voice calls under the new FCC caps. If your facility offers both options, calculate the actual cost per minute for each before deciding which to use for regular contact.

Some providers offer automatic refill options that trigger when your balance drops below a set amount. This ensures you never miss a call because your balance ran out unexpectedly. Set the minimum threshold high enough that you have a buffer even if the inmate calls more frequently than expected.