Universal Service Administrative Company

The Universal Service Administrative Company (USAC) is an independent, not-for-profit corporation designated by the Federal Communications Commission (FCC) as the administrator of universal service. USAC was created in 1997 as a not-for-profit subsidiary of the National Exchange Carrier Association (NECA). USAC has three divisions that administer the four universal service support programs: High Cost and Low Income, Rural Health Care, and Schools and Libraries divisions. The Finance Division is responsible for the finances of the corporation including billing, collection, and disbursement of all funds for the four programs. The Information Systems Division is responsible for providing overall operating support to the corporation. The Internal Audit Division is responsible for conducting audits of USAC, the support programs, and program beneficiaries. The Stakeholder Engagement Division is responsible for communication with stakeholders including Congress, the FCC, the media, and program participants. The Office of the General Counsel is responsible for providing legal advice and support to the corporation. The Human Resources and USAC Operations Division is responsible for managing employee- and facilities-related business. To implement the 1996 Telecom Act, the FCC established four programs: The High Cost Program provides support to eligible telecommunications companies that in turn offer rates and service comparable to those available in urban areas. The Lifeline Program provides support to telecommunications companies that in turn offer discounts to eligible consumers. The Rural Health Care Program provides support to eligible rural health care providers that qualify for reduced rates. The Schools and Libraries (E-rate) Program provides discounts to eligible schools and libraries that qualify for reduced rates.