Excess High-Cost Cash Not to Be Counted for 2018 Contribution Factor

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The FCC’s Wireline Competition Bureau (Bureau) has directed the Universal Service Administrative Company (USAC) not to consider any excess 2017 high-cost Universal Service Fund (USF) support—currently projected at $129 million—when determining the contribution factor for First Quarter 2018. In light of its continuing USF reform efforts, the FCC wants USAC to retain the excess funds to cover likely expenses in 2018 without causing unnecessary fluctuations in the contribution factor, currently at a record high of 18.8%.

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