Universal Service is administered by the Universal Service Administrative Company (USAC) http://www.usac.org/about/.
"To implement the 1996 Telecom Act, the FCC established four programs:
- High Cost, for rural areas (transitioning into the Connect America Fund)
- Lifeline (for low-income consumers), including initiatives to expand phone service for Native Americans
- Rural Health Care
- Schools and Libraries (commonly referred to as "E-rate")
Money to pay for universal service programs comes from the universal service fund (USF). The USF is paid for by contributions from telecommunications carriers, including wireline and wireless companies, and interconnected Voice over Internet Protocol providers, including cable companies that provide voice service, based on an assessment of their interstate and international end-user revenues".
Kind of interesting how they don't explicitly state that "money to pay for universal service programs" comes from customers (it's a line item on phone bills). Actually, it used to be two line items, one for universal access (phones for the poor) and one for E-rate (Internet for schools, libraries and rural healthcare).