May 1, 2021 – The Universal Service Administrative Company (USAC) has filed the federal universal service support mechanisms fund size and administrative cost projections for the third quarter of calendar year 2021.[1]

USAC’s filing shows the following total projected 3Q 2021 funding requirements for each federal Universal Service Fund (USF) support mechanism:

High Cost Support Mechanism – $1.289 billion

(The 2Q 2021 funding requirement was $1.413 billion)

(The 1Q 2021 funding requirement was $1.359 billion)

(The 4Q 2020 funding requirement was $1.248 billion)

Low Income Support Mechanism – $286.26 million

(The 2Q 2021 funding requirement was $254.82 million)

(The 1Q 2021 funding requirement was $262.32 million)

(The 4Q 2020 funding requirement was $244.08 million)

Rural Health Care Support Mechanism – $149.39 million

(The 2Q 2021 funding requirement was $149.36 million)

(The 1Q 2021 funding requirement was $166.88 million)

(The 4Q 2020 funding requirement was $150.51 million)

Connected Care Pilot Program – $8.59 million

(The 2Q 2021 funding requirement was $8.76 million)

E-Rate Schools and Libraries Support Mechanism – $579.84 million

(The 2Q 2021 funding requirement was $634.61 million)

(The 1Q 2021 funding requirement was $611.27 million)

(The 4Q 2020 funding requirement was $553.08 million)

USAC projects a consolidated budget of $59.83 million for 3Q 2021. In other words, USAC projects total administrative costs of $59.83 million for 3Q 2021, which breaks out to $30.95 million in direct costs for all four support mechanisms, and $28.88 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds.

This is a slight decrease in administrative costs from last quarter ($60.58 million in total administrative costs for 2Q 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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[1] Universal Service Administrative Company, Federal Universal Service Support Mechanisms Fund Size Projections For Third Quarter 2021, CC Docket No. 96-45 (Apr. 3, 2021), https://ecfsapi.fcc.gov/file/10430235716134/USAC%203Q2021%20Federal%20Universal%20Service%20Mechanism%20Quarterly%20Demand%20Filing.pdf.