FCC Initiates Comprehensive Review of Universal Seervice Fund Administration

The Federal Communications Commission adopted a proposal to strengthen the management and administration of the Universal Service Fund (USF) and the FCC’s oversight of the Universal Service Administrative Company (USAC). The proceeding builds on a prior inquiry into improving USAC’s administration of the USF and would launch a comprehensive review to ensure that funds are used for their intended purpose and the administration of those funds is efficient, fair, and cost-effective. This item is a continuation of the FCC’s broader top-to-bottom review of the USF and its programs. In the Notice of Proposed Rulemaking, the FCC seeks to improve the administration of the USF by seeking comment on four areas related to USF administration: (1) current USF administration processes; (2) the structure of USF administration, including USAC’s role and responsibilities; (3) operating costs associated with USF administration; and (4) the impact of USAC’s Board of Directors on USF administration.