Sep 14

Sep 14 Another New Record! USF Contribution Factor For Fourth Quarter Of 2026 – 42%

FCC, USF, USF Contribution, Universal Service

September 14, 2026 – The Federal Communications Commission’s (FCC) Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the fourth quarter of 2026 will be 42 percent.[1] If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.

The 42% contribution factor for 4Q 2026 is a new all-time high. The previous record for the highest USF contribution factor was 38.8% which was used last quarter. Also, for the first time ever, the USF contribution factor has broken through 40%. Historical information on quarterly universal service fund contribution factors is available online from the FCC.

For the fourth quarter of 2026, the Universal Service Administrative Company (USAC) projects $6.909925 billion in total interstate and international end-user telecommunications revenues will be collected (3Q was $7.221914; 2Q was $7.553337, and 1Q was $7.604471).

USAC estimates that $2.026190 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the fourth quarter of 2026 (3Q was $2.003130, 2Q was $2.022700, and 1Q was $2.060770). Total fourth quarter 2026 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: $627.85 million (3Q was $550.73 million, 2Q was $641.92 million, and 1Q was $648.93 million)
Rural Health Care: $132.78 million (3Q was $183.04 million, 2Q was $178.84 million, and 1Q was $181.11 million)
High-Cost: $1.07877 billion (3Q was $1.07906 billion, 2Q was $1.01156 billion, and 1Q was $1.00545 billion)
Lifeline: $186.79 million (3Q was $190.30 million, 2Q was $190.38 million, and 1Q was $225.28 million)

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[1] Proposed Fourth Quarter 2026 Universal Service Contribution Factor, CC Docket No. 96-45, Public Notice, DA 26-946 (Sep. 14, 2026), https://docs.fcc.gov/public/attachments/DA-26-946A1.pdf.