Rural Health Care

Keep Our Communities Connected (KOCC) and the Schools, Health, and Libraries Broadband (SHLB) Coalition launched the “Future of Universal Service Fund (USF) Reform Task Force." his cross-sector initiative aims to inform ongoing bipartisan and bicameral policy debates on the long-term sustainability of universal service programs that support broadband access for schools, libraries, rural communities, health providers, and low-income households.

On April 15, the Federal Communications Commission's Wireline Competition Bureau and the Office of the Managing Director released a public notice seeking input on potential reforms to the operations and management of the Universal Service Administrative Company (USAC). USAC is a subsidiary of the National Exchange Carrier Association (NECA), and is the private not-for-profit corporation created to serve as the administrator of the FCC's Universal Service Fund (USF). USAC’s function is purely administrative.

Proposed reforms to a major federal broadband subsidy program are still taking shape on Capitol Hill. Lawmakers are aiming to circulate a discussion draft of legislation that would modernize the $8.5 billion-per-year Universal Service Fund. Meanwhile, the Federal Communications Commission, which manages the fund, is asking for input on whether it should make changes to the nonprofit it delegated accounting and administrative duties to.

The Federal Communications Commission’s Wireline Competition Bureau (Bureau) seeks nominations to fill the Universal Service Administrative Company (USAC) Board of Directors position representing incumbent local exchange carriers (Bell Operating Companies).

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 Federal Communications Commission's Office of Managing Director (OMD) announced that the proposed universal service contribution factor for the second quarter of 2026 will be 0.370 or 37.0 percent. If the FCC takes no action regarding the projections of demand and administrative expenses and the proposed contribution factor within the 14-day period following release of this Public Notice, they shall be deemed approved by the FCC. USAC shall use the contribution factor to calculate universal service contributions for the second quarter of 2026.

I want to close by reflecting on what we heard, because the arc of [this week] tells a story. We began with Senator Markey reminding us that universal service was never a narrow technical objective. It was, and remains, a moral and democratic claim. Access to education, economic opportunity, civic participation must be available to everyone, regardless of geography, income, age, or background. That is what we are really talking about when we talk about universal connectivity. The means of participation.

At the second panel of the Benton Institute for Broadband and Society’s March 5 “Telecom Act at 30” event, panelists reflected on the legacy of the Telecommunications Act of 1996 and what the future holds for universal service.

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.

The Telecommunications Act of 1996 arrived at a pivotal moment in American communications history. For decades, universal service had meant one thing: ensuring that all Americans could access basic telephone service at affordable rates through a system of implicit cross-subsidies managed largely within the monopoly structure of AT&T and its successors. But by the mid-1990s, this model faced twin pressures.