Proposed Fourth Quarter 2026 Universal Service Fund Contribution Factor

The Federal Communications Commission's Office of Managing Director (OMD) announced that the proposed universal service contribution factor for the fourth quarter of 2026 will be 0.42 or 42.0 percent. The FCC's Wireline Competition Bureau (WCB), in consultation with the OMD, instructs the Universal Service Administrative Company (USAC) to apply $69 million in unused funds to offset the Schools and Libraries program demand and $56 million in unused funds to offset the Rural Health Care program demand. This offset reduces the fourth quarter 2026 contribution factor to a level below the expected contribution factor based on USAC’s filings.