USF

USF Contribution Factor Expected to Rise to 37.4 Percent

Analyst Blair Levin said that policymakers unlikely to intervene.

Ari Bertenthal

Dec 5, 2024 — 1 min read

Screenshot of New Street Research Policy Advisor Blair Levin addressing the House Subcommittee on Communications and Technology.

WASHINGTON, Dec. 5, 2024 – Federal fees on local phone bills are expected to rise yet again in the first quarter of 2025.

The Universal Service Fund’s contribution factor is set to rise to 37.4 percent early next year up from 35.8 percent in the current fourth quarter of 2024, according to data gathered from the Universal Service Administrative Company’s projection of USF revenue for the first quarter of 2025 by New Street Research.

This means that the Federal Communications Commission will collect 37.4 percent of end-user revenues from voice providers to support the $8.1 billion USF program, which subsidizes broadband access and infrastructure in rural communities, schools, health centers and libraries nationwide.

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