Universal Service Administrative Company

Universal Service Administrative Company

Universal Service Administrative Company

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The Universal Service Administrative Company (USAC) is an independent American nonprofit corporation designated as the administrator of the federal Universal Service Fund (USF) by the Federal Communications Commission. The USAC administers USF programs by providing subsidies for high cost telephone companies serving rural areas, low-income consumers, rural health care providers, and schools and libraries.

USAC is notable for more than $26.2 billion in E-Rate funding commitments and $17.9 billion in E-Rate funding disbursements it has issued to schools and libraries nationwide through the E-Rate program since 1998. USAC collects contributions from telecommunications providers and distributes more than $7.5 billion annually. It is governed by a board of directors representing various stakeholder interests and carries out rules adopted by the FCC. The company has 243 employees.

USAC administers the four programs of the Universal Service Fund:

High Cost Program
The High Cost Program helps ensure that consumers in all regions of the nation have access to and pay rates for telecommunications that are reasonably comparable to those in urban areas. The program fulfills this goal by allowing eligible telecommunications carriers to recover some of their operating costs from the federal Universal Service Fund. In April 2010, the FCC proposed reform to the High Cost Program. Davis Wright......

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