Universal Service Fund Contribution Factor to Hit 37% in Q2
Lawmakers and experts say the USF funding mechanism is unsustainable and outdated.
WASHINGTON, March 19, 2026 – The Universal Service Fund’s (USF) contribution factor will likely be 37 percent for the second quarter of 2026, down slightly from Q1 and its record high in 2025.
The contribution factor is the amount of interstate and international voice revenue telecom companies pay per year, which is about $8 billion. For Q2, USF programs will need $2.02 billion to operate.
The Federal Communications Commission announced the new contribution factor, proposed by the Universal Service Administrative Company, on Monday. USF has funded and continues to fund low-income households and broadband in rural communities, schools, libraries and health care centers.
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