The Universal Service Administrative Company (USAC) announced August 8 that it will transfer more than $9 billion of funds that it oversees out of private banking and into the US Treasury.
USAC is nonprofit organization that is responsible for administering E-rate programs and other Universal Service Funds (USF). The Government Accountability Office (GAO) recommends the transfer of funds to help lower fees, better management practices, and regulate safeguards. It is also an opportunity for the federal government to use the funds to offset debts. Despite the move USAC will continue to be the Universal Service Fund Administer and the move will not impact the state of E-rate funds. USAC anticipates the transfer will be complete during 2018 and there is no immediate action required by E-rate program participants.
Currently the funds are being held at a third party banking institution.