FCC Seeks Public Input on Reforms to USAC Administration of USF

The Federal Communications Commission is seeking public comments on potential reforms to the administration of the Universal Service Fund (USF) by the Universal Service Administrative Company (USAC).

The FCC’s Public Notice initiates a broad review of USAC’s processes, oversight, and governance, with a focus on increasing efficiency and identifying best practices in areas such as transparency and accountability. Resulting reforms could alter how USF programs are administered and overseen, with potential consequences for contributors and participants.

The FCC is asking for stakeholder input on several key areas, including:

• • Current State of Operations: The current state of USAC’s operations and areas where administration of the USF can be improved to better achieve its statutory purpose.

• • Operations and Internal Processes: Changes needed to USAC operations and internal management processes to reduce administrative burdens and streamline program administration.

• • Improving Efficiency: Ways to improve the efficiency of USAC’s efforts to recover USF funds and conduct audits of program beneficiaries, including ways to ensure the recovery of improperly disbursed funds.

• • Improving Audit Processes: How to strengthen and streamline audit and recovery processes to improve effectiveness and timeliness, including consideration of USAC’s existing requirement to retain an independent auditor on an annual basis, and whether there should be any modifications to the USAC Memorandum of Understanding (MOU) between the FCC and USAC.

• • Board Composition: The composition of USAC’s Board of Directors, specifically rules relating to stakeholder representation, selection processes, and member terms.

• • Conflicts of Interest: Measures to prevent conflicts of interest among USAC Board members, consistent with the USAC MOU.

Comments are due May 15, 2026. Stakeholders with an interest in USF programs or USAC governance should consider engaging in this proceeding and filing comments.

If you have questions about the Public Notice or would like assistance preparing comments, contact Rebecca Jacobs Goldman or Sherry Ross in our Broadband, Spectrum, and Communications Infrastructure Practice Group.