New All-Time High! USF Contribution Factor For Fourth Quarter Of 2025 – 38.1 Percent
September 15, 2025 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the fourth quarter of 2025 will be 38.1 percent. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.
The 38.1 percent contribution factor for 4Q 2025 is a new all-time high. The average USF contribution factor for 2025 rounded up to the nearest tenth of one percent is 36.8 %. This is an all-time high for the average annual contribution factor. Historical information on quarterly universal service fund contribution factors is available online from the FCC.
For the fourth quarter of 2025, the Universal Service Administrative Company (USAC) projects $7.870473 billion in total interstate and international end-user telecommunications revenues will be collected ($8.045954 billion in collections were projected for 3Q 2025, $8.223063 billion was projected for 2Q 2025, and $8.176992 billion was projected for 1Q 2025).
USAC estimates that $2.153410 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the fourth quarter of 2025 (the 3Q 2025 demand was estimated at $2.113790 billion, the 2Q 2025 demand was estimated at $2.186160 billion, and the 1Q 2025 demand was estimated at $2.161100 billion). Total fourth 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: $551.89 million (3Q 2025 was $639.18 million, 2Q 2025 was $653.04 million, and 1Q 2025 was $657.15 million)
Rural Health Care: $181.09 million (3Q 2025 was $179.03 million, 2Q 2025 was $104.10 million, and 1Q 2025 was $129.50 million)
High-Cost: $1.17676 billion (3Q 2025 was $1.05065 billion, 2Q 2025 was $1.12390 billion, and 1Q 2025 was $1.08640 billion)
Lifeline: $243.67 million (3Q 2025 was $244.93 million, 2Q 2025 was $305.12 million, and 1Q 2025 was $288.05 million)
