Federal Universal Service Support Mechanisms Fund Size Projections for Fourth Quarter 2025

The Universal Service Administrative Company (USAC) submitted the federal Universal Service Support Mechanisms fund size and administrative cost projections for the fourth quarter of calendar year 2025 (4Q2025). USAC projects a consolidated budget of $75.59 million for 4Q2025. Direct costs for all support mechanisms total $32.76 million. Joint and common costs (including billing, collection, and disbursement activities) total $42.83 million. The 4Q2025 High Cost Support Mechanism funding requirements are projected as follows: $49.36 million for High Cost Loop (HCL) support, $302.10 million for Connect America Fund (CAF) Broadband Loop Support (BLS), $2.81 million for frozen Price Cap Carrier Support, $6.40 million for CAF Phase II, $36.60 million for CAF Phase II Auction, $88.05 million for frozen Competitive Eligible Telecommunications Carriers (CETC) Support, $84.29 million for CAF/intercarrier compensation (ICC) Support, $41.70 million for Alaska Plan Support, $43.32 million for Alternative Connect America Model (A-CAM), $55.56 million for A-CAM II, $269.63 million for Enhanced Alternative Connect America Cost Model (E-ACAM), $10.68 million for Uniendo a Puerto Rico/Connect USVI, and $148.61 million for Rural Digital Opportunity Fund. This results in base projected demand of $1,139.11 million. For 4Q2025, USAC projects $270.37 million will be required for Lifeline support. For 4Q2025, USAC projects that $0.04 million will be required for Link-Up support. USAC estimates a total projected 4Q2025 funding requirement for the Rural Health Care Support Mechanism of $181.09 million.