FCC Announces Proposed USF Contribution Factor of 32.6% for the First Quarter of 2023


The Federal Communications Commission’s (FCC or Commission) Office of Managing Director (OMD) has issued a Public Notice announcing that the proposed Universal Service Fund (USF) contribution factor will be 32.6% for the first quarter of 2023.  This is notably higher than the 28.9% for the fourth quarter of 2022, while being almost the same as the 33.0% for the third quarter of 2022.  Similarly, the revenue requirement for USF has also rebounded to $2.13 billion, up from $1.91 billion in the prior quarter, and nearly the same as the $2.12 billion in the third quarter of 2022.  Meanwhile, the funding base for contributions is projected to be $8.75 billion for the first quarter of 2023, which is approximately the same as the $8.62 billion in fourth quarter of 2022.  The 32.6% contribution factor will take effect automatically if the Commission takes no action regarding the projections of demand and administrative expenses and the proposed contribution factor on or before December 23, 2022.

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