USF Spent $8.4 billion in 2025
A new report detailed how federal subsidies were spent as reforms and scrutiny grew.
WASHINGTON, March 30, 2026 – Lawmakers and federal regulators oversaw the distribution of billions of dollars in broadband subsidies as new data showed where that money was going and how the system behind it was changing.
A newly released annual report from the Universal Service Administrative Company, the entity that manages the federal Universal Service Fund, showed roughly $8.45 billion in authorized support in 2025, with the largest share directed toward expanding broadband access in rural areas. The findings came as policymakers continued to scrutinize how effectively federal funds were closing the digital divide and whether oversight mechanisms were keeping pace with the scale of spending.
The report laid out a funding structure heavily positioned toward infrastructure. More than half of all support, about $4.55 billion, went to the High Cost program, which subsidized broadband deployment in rural and hard-to-reach areas. Schools and libraries received about $2.38 billion through the E-Rate program, while $923 million supported low-income households through Lifeline. Another roughly $601 million was directed to rural health care providers to expand telehealth connectivity.
Together, those programs formed the backbone of the federal government’s long-running effort to ensure universal access to communications services, but the report made clear that the system was also undergoing significant transition.
The report described a year marked by policy implementation and operational shifts driven by the Federal Communications Commission. That included rolling out a cybersecurity pilot program for schools and libraries, changes to how broadband deployment data was reported, and updates to the Lifeline program affecting millions of subscribers, particularly in California.
At the same time, the organization was managing internal changes. The departure of longtime CEO Radha Sekhar in 2025 and the appointment of an interim leader came as USAC continued a broader push to modernize its systems and improve efficiency.
That modernization effort was closely tied to oversight concerns. The report featured expanded fraud detection tools, data analytics, and compliance reviews aimed at ensuring funds were distributed properly. In 2025 alone, USAC conducted 128 audits and tested hundreds of payments to identify improper disbursements and reduce risk.
Administrative costs remained a smaller but closely watched piece of the overall picture. The report showed total operating expenses of about $266.6 million in 2025, covering personnel, professional services, and general administrative costs associated with running the programs. While significantly lower than total program spending, those expenses were often a focal point in congressional oversight discussions about efficiency and accountability.
The report made clear that federal broadband programs were shifting after the surge of pandemic-era funding. Several emergency initiatives had concluded, and USAC was moving toward a more stable, long-term operating model while continuing to integrate new FCC directives and technologies.
Looking ahead, officials said the focus would remain on tightening oversight, completing system upgrades, and improving how participants interact with the programs. That included expanding data-driven fraud prevention, finalizing the transition away from legacy systems, and refining how feedback was collected from stakeholders.
The report ultimately emphasized the scale and complexity of the federal government’s broadband strategy: billions of dollars flowing through multiple programs, each targeting a different gap in connectivity, all under increasing pressure to demonstrate results.
Member discussion