USAC: Projected USF Demand Down Slightly From Q2 to Q3
Projected USF demand for Q3 is $2.114 billion, which is $72.4 million less than Q2, a 3.3% drop, said a recent filing by the Universal Service Administrative Co. “The decrease in overall USF demand is caused by decreases in demand for three of the constituent funds of the USF, offset by an increase in the Rural Health Fund,” USAC said.
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High-cost program support decreased by $73.3 million over the previous quarter, the schools and libraries program by $13.9 million and Lifeline by $60.2 million. Rural health care program support increased by $74.9 million. The FCC will use the numbers to calculate the next contribution factor.
“Assuming that the contribution base is the same as for the current quarter, the USF assessment factor for the third quarter 2025 will decrease from 36.6% to 35.0%,” analyst Billy Jack Gregg said in an email.