Are American taxpayers being ripped off? A whistleblower group called Project Veritas went undercover to expose federal waste. They visited the offices of a program called Lifeline. It’s a federal program that provides a discount on phone services for low income Americans. Some phone companies even give away phones.

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In 2008, the Lifeline program budget was $822 million, but last year it was $2.2 billion. The O’Reilly Factor played several of the shocking videos. One of the stops included Philadelphia, Pennsylvania. The person undercover asked the Lifeline worker if he could sell the free phone for money to buy heroin. That employee responded, “Whatever you want to do with it.”

Needless to say, Philadelphia fired the employee. Bill O’Reilly spoke to the president of Project Veritas, James O’Keefe. He explained that private phone companies are given corporate subsidies by the government, which enables them to participate in the program.

O’Keefe said, “It’s intended to help poor people, but we found is that it in fact hurts poor people and it might even benefit wealthy individuals.”

Watch the undercover videos and O'Keefe's interview on the Factor above!

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