August 2, 2021 – The Universal Service Administrative Company (USAC) has filed the fund size and administrative cost projections for the federal universal service support mechanisms for the fourth quarter of calendar year 2021.[1]

USAC’s filing shows the following total projected 4Q 2021 funding requirements for each federal Universal Service Fund (USF) support mechanism:

High Cost Support Mechanism – $1.1377 billion  (The 3Q 2021 funding requirement was $1.289 billion; The 2Q 2021 requirement was $1.413 billion)

Low Income Support Mechanism – $230.93 million  (The 3Q 2021 funding requirement was $286.26 million; The 2Q 2021 requirement was $254.82 million)

Rural Health Care Support Mechanism – $153.12 million  (The 3Q 2021 funding requirement was $149.39 million; The 2Q 2021 requirement was $149.36 million)

Connected Care Pilot Program – $8.55 million  (The 3Q 2021 funding requirement was $8.59 million; The 2Q 2021 requirement was $8.76 million)

E-Rate Schools and Libraries Support Mechanism – $594.14 million  (The 3Q 2021 funding requirement was $579.84 million; The 2Q 2021 requirement was $634.61 million)

USAC projects a consolidated budget of $61.14 million for 4Q 2021. This breaks out into $30.89 million  in direct costs for all USF support mechanisms, and $30.25 million in total joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. (The consolidated budget for 3Q 2021 was $59.83 million, and it was $60.58 million for 2Q 2021.)

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. Then, USAC will bill USF contributors on a monthly basis for their individual obligations based on the USF contribution factor, collect these owed amounts, and distribute USF support to eligible recipients.

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[1] Universal Service Administrative Company, Federal Universal Service Support Mechanisms Fund Size Projections For Fourth Quarter 2021, WC Docket Nos. 06-122, 05-337, and 03-109; CC Docket Nos. 02-6, 02-60, and 96-45 (Aug. 2, 2021), https://www.fcc.gov/ecfs/filing/10802292736246.