Universal Service Administrative Company

The key findings of this report reflect the need to establish a clearer connection between Federal Communications Commission policy and how Universal Service Administrative Company operationalizes this policy through an FCC-directed Lifeline program strategic plan. Currently no such document exists. This prescriptive document will significantly contribute to the resolution of many of the findings. Broadly, findings, observations, and recommendations span two main categories:

The total projected collected interstate and international end-user revenue base to be used in determining the contribution factor for the Universal Service Fund support mechanisms for the second quarter of calendar year 2023 (2Q2023) is $8,761,742,607.

The Universal Service Administrative Company (USAC) submited the federal Universal Service Support Mechanisms fund size and administrative cost projections for the first quarter of calendar year 2023 (1Q2023). USAC projects a consolidated budget of $67.28 million for 1Q2023. Direct costs for all support mechanisms total $33.88 million. Joint and common costs (including billing, collection, and disbursement activities) total $33.40 million.

During the first quarter of 2022, the Lifeline National Verifier received 4,457,395 applications. Of the applications received, 48% were fully qualified automatically, and 7% were qualified through manual documentation review. The overall qualification result is determined after eligibility is checked and includes further checks related to identity and duplicates. Of the applications submitted, 1,989,492 applications were determined to be “Not Qualified” because they did not meet the program criteria and were not resolved by the applicant within 45 days.

Fund size and administrative cost projections for the third quarter of calendar year 2022 (3Q2022). USAC projects a consolidated budget of $61.60 million for 3Q2022.

For the first time in its history, the Universal Service Administrative Company (USAC) expanded beyond administering the four universal service programs: E-Rate, High Cost (Connect America Fund), Lifeline, and Rural Health Care. In 2021, USAC rose to the challenge and successfully administered four Federal Communications Commission initiatives, collectively known as the Congressional Response Programs.

The Universal Service Administrative Company (USAC) will utilize a new process to confirm existing subscribers’ Lifeline program eligibility if there is reason to believe that a subscriber is no longer eligible for their Lifeline service. USAC will reach out to the subscriber and direct them to the National Verifier to verify their eligibility through a continued eligibility application. The National Verifier supports the continued eligibility process by streamlining, automating, and tracking subscriber outreach and response, a process that was previously manual and ad hoc in nature.

The Lifeline National Eligibility Verifier (NV) data from Q4 2021 is now available on the Lifeline Program Data webpage. During the fourth quarter of 2021, the NV received 4,379,229 applications. Of the applications received, 49% were qualified automatically, and 7% were qualified through manual documentation review. Of the applications submitted, 1,927,028 applications were determined to be “Not Qualified” because they did not meet the program criteria and were not resolved by the applicant within 45 days. For more program data, including participation rates and disbursements, visit