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.
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