The Universal Service Fund is funded by assessments on long-distance voice revenue from landline and wireless telecommunications providers. The providers pass these assessments along to consumers on their bills. Due to declining long-distance revenue and increased needs of the program, the contributions factor (the percentage assessed on revenue) has increased steadily from less than 10% fifteen years ago to over 30% today.
All four USF programs support broadband networks and services, yet the contributions are still based on long-distance revenue. The system needs to be modernized so that all users of the broadband networks are assessed for contributions to the Fund.
USF Contributions Resources
USF: A Communications Success Story – An overview of USF and the need for contributions modernization for policymakers – updated for 2025
Latest Advocacy
- WTA and ABC Coalition Petition for Reconsideration of forbearance from assessing broadband for contributions to USF in Open Internet Order – filed June 21, 2024
- Industry Notice of Ex Parte with office of Chairwoman Rosenworcel – April 1, 2024
- Industry Notice of Ex Parte with office of Commissioner Carr – April 4, 2024
- WTA Notice of Ex Parte with office of Commissioner Gomez – April 17, 2024
- WTA statement on “missed opportunity” in Open Internet proceeding – April 25, 2024
Further Notice and Proposed Rulemaking on USF Contributions Reform – adopted April 27, 2012
- Rural Associations’ comments on Contributions Reform FNPRM – filed July 9, 2012
- Rural Associations’ reply comments on Contributions Reform FNPRM – filed August 6, 2012
Materials for Policymakers
WTA statement on introduction of S. 3321, the Lowering Costs for Broadband Consumers Act – released November 16, 2023
WTA responds to inquiry from USF Working Group – August 25, 2023
WTA Statement on Senate Commerce Committee approval of the Fair Contributions Act – released May 11, 2022
Letter to Policymakers on USF Modernization – released February 14, 2021
Watch a short video produced by CoBank explaining the need for USF contributions modernization.
