Universal Service Fund Contribution Factor Projected to Reach Record 42.3%
Analyst argues broadband providers should contribute, as shrinking telecom revenues push the surcharge toward record levels.
WASHINGTON, June 8, 2026 – The surcharge used to fund the federal Universal Service Fund could climb above 40 percent for the first time next quarter, according to one analyst's prediction.
Analyst Billy Jack Gregg told Broadband Breakfast that he expects the USF contribution factor will hit 42.3 percent in Q3, the highest ever, based on numbers released June 1 by the Universal Service Administrative Co. The predicted figure would represent a sharp increase from the 37 percent contribution factor in the second quarter of 2026, if realized.
