Universal Service Administrative Company

The Universal Service Administrative Company (USAC) projects a consolidated budget of $68.06 million for the federal Universal Service Support Mechanism in 4Q2026. Direct costs for all support mechanisms total $30.53 million. Joint and common costs (including billing, collection, and disbursement activities) total $37.53 million. Universal Service Support Mechanisms include High Cost, Low Income, Rural Health Care, Schools and Libraries, and Connected Care Pilot. 

The Universal Service Administrative Company provided current E-Rate commitment and disbursement data for Head Start and pre-kindergarten facilities and students for funding year 2025. The commitment and disbursement amounts for Head Start and pre-K facilities are:

• Head Start Schools
  • FY 2025 Commitment Amounts: $15.5 million
  • FY 2025 Disbursement Amounts: $7.4 million
• Private and Public Pre-Kindergarten Schools
  • FY 2025 Commitment Amounts: $43.9 million
  • FY 2025 Disbursement Amounts: $21.6 million

The Universal Service Administrative Company’s (USAC’s) estimated total Rural Health Care (RHC) Program demand for Funding Year 2026 is $911.25 million, including the gross demand estimate of $882.19 million for the Telecommunications (Telecom) and Healthcare Connect Fund (HCF) Programs and the projected USAC administrative expenses of $29.06 million.

The Universal Service Administrative Company (USAC) submitted the contribution base amount to be used for the third quarter of calendar year 2026 (3Q2026). Upon approval of the universal service support mechanisms quarterly funding requirements, projected administrative costs, and the contribution base, the Federal Communications Commission will establish a quarterly contribution factor and a circularity factor. USAC will then bill contributors monthly for their individual obligations based on the approved contribution factor. The total projected collected interstate and international end-u

The Universal Service Administrative Company (USAC) submitted the federal Universal Service Support Mechanisms fund size and administrative cost projections for the third quarter of calendar year 2026 (3Q2026). Upon approval of the quarterly funding requirements for the Support Mechanisms, the projected administrative expenses, and the submission of the contribution base amount, the Federal Communications Commission will establish a quarterly contribution factor.

In 2025, the Universal Service Administrative Company (USAC) continued to advance its mission with a steady commitment to responsible stewardship of Universal Service Fund (USF) resources, strong operational performance, and close collaboration with the Federal Communications Commission (FCC).

The total projected collected interstate and international end-user revenue base to determine the contribution factor for the Universal Service support mechanisms for second quarter of calendar year 2026 is $7,553,336,520.

In March 2016, the Federal Communications Commission adopted the Lifeline Reform and Modernization Order (2016 Lifeline Order), which included changes to eligibility verification for enrollment and recertification. The FCC directed the Universal Service Administrative Company to establish a system for independent, third-party eligibility determinations. To accomplish this, USAC built the National Lifeline Eligibility Verifier (National Verifier) to automate, where possible, and standardize eligibility verification across all states and territories.

The Universal Service Administrative Company (USAC) submitted the federal Universal Service Support Mechanisms fund size and administrative cost projections for the second quarter of calendar year 2026 (2Q2026). USAC projects a consolidated budget of $65.67 million for 2Q2026.  Direct costs for all support mechanisms total $33.88 million.

In response to a request from the Federal Communications Commission's Wireline Competition Bureau (WCB) staff, the Universal Service Administrative Company (USAC) provided non-confidential information on application and enrollment data as it relates to the Safe Connections Act (SCA) of 2022. As of November 30, 2025, 5,429 applications were created for the emergency Lifeline benefit through the SCA.