USF Contribution Factor Dips To 32.8 Percent For Second Quarter Of 2024
March 14, 2024 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the Second quarter of 2024 will be 32.8 percent. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved. The 32.8 percent contribution factor for 2Q 2024 is a slight decrease from the 34.6 percent USF contribution factor that was used for 1Q 2024, and which is the all-time record high. Historical information on quarterly universal service fund contribution factors is available online from the FCC.
For the second quarter of 2024, the Universal Service Administrative Company (USAC) projects $8.555642 billion in total interstate and international end-user telecommunications revenues will be collected ($8.313338 billion was projected for 1Q 2024). USAC estimates that $2.092510 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the second quarter of 2024 (the 1Q 2024 demand was estimated at $2.118730 billion).
Total second quarter 2024 demand includes projected program support, administrative expenses, and true-ups and adjustments, which breaks out among the USF support mechanisms as follows:
E-Rate Schools & Libraries: $652.36 million (1Q 2024 was $634.96 million)
Rural Health Care: $170.03 million (1Q 2024 was $168.60 million)
High-Cost: $1.10091 billion (1Q 2024 was $1.09021 billion)
Lifeline: $169.21 million (1Q 2024 was $225.47 million)
