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

For the Second Quarter of 2025 (2Q2025), the Federal Communications Commission's High Cost Support Mechanism funding requirements are projected as follows: $51.81 million for High Cost Loop (HCL) support, $253.11 million for Connect America Fund Broadband Loop Support (CAF 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, $88.36 million for frozen Competitive Eligible Telecommunications Carrier (CETC) Support, $84.32 million for CAF/ICC Support, $41.70 million for Alaska Plan Support, $43.57 million for Alternative Connect America Model (A-CAM), $54.84 million for A-CAM II, $270.35 million for Enhanced Alternative Connect America Model (E-ACAM), $10.68 million for Uniendo a Puerto Rico/Connect US Virgin Islands, and $148.89 million for Rural Digital Opportunity Fund. This results in base projected demand of $1,093.44 million. The following funding requirements will be paid from funds available in the High Cost account: Rural Broadband Experiments $0.39 million, Mobility Fund Phase I $6.78 million, incremental A-CAM support $0.41 million, and E-ACAM support $44.78 million. The total base demand of $1,093.44 million is adjusted as follows: increased by prior period adjustments of $11.29 million46 and increased by administrative costs of $19.17 million; resulting in a total projected 2Q2025 funding requirement for the High Cost Support Mechanism of $1,123.90 million. 

The estimated 2Q2025 Low Income Support Mechanism funding requirements are projected as follows: $292.15 million for Lifeline and $0.07 million for Link-Up, resulting in a total funding requirement of $292.22 million. The total fund requirement of $292.22 million is adjusted as follows: decreased by prior period adjustments of $9.55 million53 and increased for administrative costs of $22.45 million; resulting in a total projected 2Q2025 funding requirement for the Low Income Support Mechanism of $305.12 million.

The 2Q2025 Rural Health Care Support Mechanism collection requirement of $176.73 million is adjusted as follows: decreased by a prior period adjustment of $0.63 million resulting in a total projected 2Q2025 funding requirement for the Rural Health Care Support Mechanism of $176.10 million.

On March 8, 2024, the FCC announced the E-rate funding cap for Funding Year 2024 of $4,940.07 million.68 This reflects a 3.6 percent inflation-adjusted increase to the $4,768.41 million cap from Funding Year 2023. 69 The filing window for Funding Year 2024 closed on March 27, 2024. Based on applications received, USAC estimates demand for Funding Year 2024 will be $3,014.22 million (net of projected post window close adjustments), which includes estimated demand for bus wi-fi services and equipment of $19.25 million. FCC approved a carry-forward to Funding Year 2024 of $490 million from prior funding years as follows, 1999: $0.22 million; 2002: $0.28; 2004: $0.13 million; 2005: $0.10 million; 2008: $0.53 million; 2010: $0.12 million; 2011: $0.20 million; 2012: $2.10 million; 2013: $1.26 million; 2014: $0.47 million; 2015: $12.81 million; 2016: $1.06 million; 2017:$7.56 million; 2018: $6.19 million; 2019: $8.31 million; 2020: $56.67 million; 2021: $154.66 million; and 2022: $237.33 million; (net of funds carried back to funding years with a negative carry forward balance). Based on estimated demand of $3,014.22 million and funds carried forward of $490 million, the 2Q2025 collection requirement for Funding Year 2024 is $631.83 million. The net fund requirement of $631.83 million is adjusted as follows: decreased by the prior period adjustments of $2.60 million70 and increased by $23.81 million for administrative expenses; resulting in a total projected 2Q2025 funding requirement for the Schools and Libraries Support Mechanism of $653.04 million.


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