USF

FCC to Increase Universal Service Contribution Factor to 36.6 Percent

New contribution factor will apply in the second quarter of 2025

Blake Ledbetter

Mar 14, 2025 — 1 min read

Photo of FCC Chairman Brendan Carr, from Facebook

WASHINGTON, March 14, 2025 – Telecommunications companies will see a slight increase in the percentage of end-user revenue they must contribute to the Universal Service Fund (USF).

In a public notice Thursday, the Federal Communications Commission’s Office of Managing Director announced that the universal service contribution factor for the second quarter of 2025 will be 36.6 percent, up slightly from 36.3 percent in the first quarter.

The updated tax will go into effect on April 1, impacting wireless carriers, long-distance providers, and other telecommunications companies.

Meanwhile, the Supreme Court is set to hear a case challenging the constitutionality of the USF’s funding mechanism. Oral arguments for the case are expected to begin on March 26 at 10 a.m.

The FCC has projected more than $8.2 billion in total end-user revenues for the second quarter of 2025.

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