The proposed contribution factor for the first quarter of 2012 has been set to 17.9 percent. This is up from last quarter which saw the percentage at 15.3%. The FCC, Congress and the Universal Service Administrative Company (USAC), administers the federal Universal Service Fund (USF). The percentage, also known as the contribution factor must be paid by all telecommunication companies. The reason behind paying the USF is to offer support to low-income consumers, schools, libraries, rural areas, and much more.