USF Contribution Factor For Second Quarter Of 2025 – 36.6 Percent – Another New Record & Fourth Consecutive Increase
March 13, 2025 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the second quarter of 2025 will be 36.6 percent.[1] If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.
The 36.6 percent contribution factor for 2Q 2025 sets another new record, beating the previous all-time high of 36.3 percent during 1Q 2025. There has now been an increase to the USF contribution factor for four consecutive quarters (2Q 2024 – 32.8%; 3Q 2024 – 34.4%; 4Q 2024 – 35.8%; 1Q 2025 – 36.3%; 2Q 2025 – 36.6). Historical information on quarterly universal service fund contribution factors is available online from the FCC.
For the second quarter of 2025, the Universal Service Administrative Company (USAC) projects $8.223063 billion in total interstate and international end-user telecommunications revenues will be collected ($8.176992 billion in collections were projected for 1Q 2025). USAC estimates that $2.186160 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the second quarter of 2025 (the 1Q 2025 demand was estimated at $2.161100 billion).
Total second quarter 2025 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: $653.04 million (1Q 2025 was $657.15 million)
Rural Health Care: $104.10 million (1Q 2025 was $129.50 million)
High-Cost: $1.12390 billion (1Q 2025 was $1.08640 billion)
Lifeline: $305.12 million (1Q 2025 was $288.05 million)
Public Notice, p. 2.
[1] Proposed Second Quarter 2025 Universal Service Contribution Factor, CC Docket No. 96-45, Public Notice, DA 25-223 (Mar. 13, 2025), https://docs.fcc.gov/public/attachments/DA-25-223A1.pdf.
