February 1, 2021 – The Universal Service Administrative Company (USAC) has filed the Federal Universal Service Support Mechanisms Fund Size Projections For Second Quarter 2021.

The filing shows the following total projected 2Q 2021 funding requirements for each Universal Service Fund (USF) support mechanism:

• High Cost Support Mechanism – $1.413 billion (The 4Q 2020 funding requirement was $1.248 billion)

• Low Income Support Mechanism – $254.82 million (The 4Q 2020 funding requirement was $244.08 million)

• Rural Health Care Support Mechanism – $149.36 million (The 4Q 2020 funding requirement was $150.51 million)

• Connected Care Pilot Program – $8.76 million

• E-Rate Schools and Libraries Support Mechanism – $634.61 million (The 4Q 2020 funding requirement was $553.08 million)

USAC projects total administrative costs of $60.58 million for 2Q 2021, which breaks out to $31.63 million in direct costs for all four support mechanisms, and $28.95 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. This is a slight increase in administrative costs from last quarter ($59.38 million in total administrative costs for 4Q 2020).

The FCC will use the of the quarterly funding requirements for the four USF Support Mechanisms, the projected administrative expenses, and the USF contribution base amount, to establish a quarterly USF contribution factor.

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