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USAC Corporate History

The Universal Service Administrative Company (USAC) administers the four Universal Service Fund (USF) support programs for the Federal Communications Commission (FCC). The four programs - High Cost, Low Income, Rural Health Care, and Schools & Libraries - help provide access to affordable telecommunications services to consumers, libraries, rural health care facilities, and schools. USAC was created in 1997 as a not-for-profit subsidiary of the National Exchange Carrier Association, Inc. (NECA). It is governed by a Board of Directors that includes a broad representation of both industry and non-industry interests including representatives for consumers, health care providers, schools and libraries, service providers, and state regulatory commissions.

USAC was initially charged with overseeing the administration of the High Cost and the Low Income support programs as well as the billing, collection, and disbursement of contributions for the High Cost, Low Income, Rural Health Care, and Schools and Libraries programs. USAC became responsible for administering all of the universal service support programs after the December 31, 1998, merger with the Rural Health Care Corporation and the Schools and Libraries Corporation, as directed by the FCC.

USAC is headed by a chief executive officer that is selected and appointed by the Chairman of the FCC. The members of the Board of Directors of USAC nominate, by consensus, a CEO candidate. The Board submits the name of its nominee, along with relevant professional and biographical information, to the Chairman of the FCC. Subject to the Chairman's approval, the nominee is appointed as USAC's chief executive officer.

USAC has three divisions that administer the four USF support programs: the High Cost and Low Income Division (HCLID), the Rural Health Care Division (RHCD), and the Schools and Libraries Division (SLD). In addition, USAC has a Finance Division that is responsible for the finances of the corporation including the billing, collection, and disbursement of all funds for the four programs; an Information Systems Division that is responsible for providing overall operating support to the corporation; an Internal Audit Division that is responsible for conducting audits of USAC, the support programs, and program beneficiaries; an External Relations Division that is responsible for communication with stakeholders including Congress, the FCC, and program participants; and an Office of the General Counsel, which is responsible for providing legal advice and support to the corporation.

Committees of the USAC Board of Directors govern the functions of each division. Each committee of the USAC Board oversees the budgets of its respective division and reports to the USAC Board. Any action taken by a committee is subject to review by the full USAC Board.

Learn more about USAC's governance...