The regulator’s targeted consultation launches ahead of much broader expected proposals from US politicians to reform the delivery of public subsidy programmes
A comprehensive review of USAC has been a long time coming
On 15 April 2026, in the US, the Federal Communications Commission (FCC) launched a month-long consultation on potential reforms to the operations and management of the Universal Service Administrative Company (USAC), which administers the regulator’s Universal Service Fund (USF) and the programmes it supports. In this role, USAC is subject to FCC oversight and is responsible for the “efficient, effective and competitively neutral” management of USF programmes, including the collection and disbursement of funding. Given the “passage of time” since the FCC last conducted a wide-ranging review of USAC, the regulator is focused on six distinct issues, seeking comment on ways to strengthen USAC’s internal processes and improve its management structure, as well as on whether the organisation’s governance framework implements best practices, including standards for accountability and transparency.
Maximising the efficiency, transparency, accountability and speed of operations
Firstly, the FCC is looking for input on the current state of USAC operations and on any ways the administration of the USF should be reformed or made more efficient to better reflect the fund’s statutory purpose. Specifically, the regulator is interested in understanding the areas or processes most in need of streamlining and what the challenges to that would be, as well as past examples of new efficiencies in USAC or other organisations that could serve as a model for the company to follow. Secondly, the FCC is seeking comment on what changes are needed to USAC operations and internal management processes to maximise efficiency, transparency, accountability and speed of operations, including processes that cause undue delay or burden on programme participants, and potential changes (e.g. shot clocks or clear deadlines) that might increase responsiveness for them.
Tackling the alleged misuse of universal service funds
Thirdly, the regulator is exploring ways to improve the efficiency of USAC’s role in the recovery of USF funds and audits of programme beneficiaries, and to ensure that the FCC is able to recover all “improperly-disbursed funding” subject to recovery. This would include input on the policies and practices that the regulator could adopt to address known or highly suspected instances of alleged misuse of funds, failure to comply with programme rules or other potential waste, fraud or abuse of funds. Fourthly, and relatedly, the FCC is seeking comment on audits of USAC processes, which must be conducted annually by an independent party, and whether they can be more efficient and cost effective.
Potential updates to USAC’s Board may be just a small part of broader forthcoming reforms
The FCC’s final two priorities focus on whether changes to USAC’s Board of Directors (including new stakeholders or expertise) could promote more efficient administration of USF support, or prevent organisational or personal conflicts of interest among the company’s Board members. While the consultation does not imply any immediate rule changes, feedback may lead to future reforms to USAC processes in line with the regulator’s “ongoing commitment” to serve the public interest. It also represents a relatively minor part of the USF’s potential development, with policymakers expected to circulate a bill within the coming months on proposals to modernise the fund.
