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FCC Proposes USF Contribution Factor of 36%

The FCC Office of Managing Director announced that the proposed universal service contribution factor for Q3 2025 will be 0.360, or 36%. That’s slightly higher than analyst Billy Jack Gregg's projection of 35% (see 2505060009). The proposed rate is based on overall demand of $2.2 billion, with a contribution requirement of $2.1 billion.

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“If the Commission takes no action regarding the projections of demand and administrative expenses and the proposed contribution factor within the 14-day period following release of this Public Notice, they shall be deemed approved by the Commission,” the notice said. The Universal Service Administrative Co. will use the contribution factor to calculate universal service contributions for Q3.