I believe it stated with Reagan paying for a limited number of phones for those in dire need.
There were no cellphones back then, and the government did not pay for the phones. It only regulated that people in "dire need" be offered reasonable rates.
Obama didn't give her that phone, nor does the government pay for it. BUT, nothing is for free. Every other user pays a higher rate to subsidize this.
She has some pretty nice earrings and clothes. I guess she should be thanking us, rather than the Obama. Good God, Reagan must be rolling over right now.