Universal Service Administrative Company

This annual report provides a summary of the National Verifier and its functionality, and it outlines how the National Verifier meets the Federal Communications Commission's key objectives: to protect against waste, fraud, and abuse; to lower costs to the Universal Service Fund (Fund) and service providers through administrative efficiencies; and to better serve eligible beneficiaries by facilitating choice and improving the enrollment experience. This report also provides an update on the use and performance of the National Verifier, including a discussion of system enhancements.

For the Second Quarter of 2025 (2Q2025), the Federal Communications Commission's High Cost Support Mechanism funding requirements are projected as follows: $51.81 million for High Cost Loop (HCL) support, $253.11 million for Connect America Fund Broadband Loop Support (CAF BLS), $2.81 million for frozen Price Cap Carrier Support, $6.40 million for CAF Phase II, $36.60 million for CAF Phase II Auction, $88.36 million for frozen Competitive Eligible Telecommunications Carrier (CETC) Support, $84.32 million for CAF/ICC Support, $41.70 million for Alaska Plan Support, $43.57 mi

Recertification is an annual requirement for Affordable Connectivity Program (ACP) subscribers. Service providers with Federal Communications Commission-approved alternative verification processes or that use a school-based eligibility verification process for the national school lunch or breakfast program must conduct recertification for those subscribers. For all other ACP subscribers, the Universal Service Administrative Company (USAC) conducts recertification to ensure that ACP subscribers are still eligible for the benefit.

The total projected collected interstate and international end-user revenue base to be used in determining the contribution factor for the Universal Service Fund support mechanisms for the second quarter of calendar year 2023 (2Q2023) is $8,761,742,607.

The Universal Service Administrative Company (USAC) submited the federal Universal Service Support Mechanisms fund size and administrative cost projections for the first quarter of calendar year 2023 (1Q2023). USAC projects a consolidated budget of $67.28 million for 1Q2023. Direct costs for all support mechanisms total $33.88 million. Joint and common costs (including billing, collection, and disbursement activities) total $33.40 million.

During the first quarter of 2022, the Lifeline National Verifier received 4,457,395 applications. Of the applications received, 48% were fully qualified automatically, and 7% were qualified through manual documentation review. The overall qualification result is determined after eligibility is checked and includes further checks related to identity and duplicates. Of the applications submitted, 1,989,492 applications were determined to be “Not Qualified” because they did not meet the program criteria and were not resolved by the applicant within 45 days.