First, you might want to read up a little on the Lifeline phone idea that you have been paying for since 1985 (that was the Reagan administration FWIW):
http://www.fcc.gov/lifeline
This wasn't created under Obama. In 2005, the program was changed to allow the phones to be cell phones (that was the GWB administration FWIW). Good idea, even if it did happen under GWB.
Second, I want job seekers to have a phone. Today, cell phones if not heavily used can be as cheap or cheaper than a land line. Back in the phone dark ages, when phones were expensive, people did without. The problem is that when you are looking for a job, you need to be able to call employers and they need to be able to call you. This gets old really fast for the people you are imposing on. Nowadays, I have tons of unused minutes on my cell phone, which I get with my plan, because I need unlimited data and texts. Funny how easily we adapt to some changes. I think you need to get with the times and accept that cell phones are cheap compared to a) housing, and b) commuting to a distant job.
As for "cutting off" the "leeches": there is always a balancing act between helping people and subsidizing lazy people. Would you really be prepared to let a child die because the parents are lazy? How about non-lazy people who happen to be poor? Is there a particular moral principle that says "let people die who can't or won't help themselves?" The world is not so simple as you seem to think.