In the past, only long distance companies made contributions to support the federal Universal Service Fund. In 1996, Congress passed a law that expanded the types of companies contributing to the Universal Service Fund.
Currently, all telecommunications companies that provide service between states, including long distance companies, local telephone companies, wireless telephone companies, paging companies, and payphone providers, are required to contribute to the federal Universal Service Fund. Carriers providing international services also must contribute to the Universal Service Fund.
Telecommunications companies pay contributions into one central fund. USAC makes payments from this central fund to support the four Universal Service Fund programs.