Voice Your Support for H.R. 1582 and S. 1380 to Ensure a Fair Distribution of the Federal Universal Service Fund for Rural Areas!

09/22/2003

• Under the regulations adopted by the Federal Communications Commission (FCC) in 1999, most rural consumers in high cost areas receive little or no support from the Universal Service Fund if they happen to be served by one of the so-called "non-rural" carriers.
• H.R. 1582 and S. 1380 would require the Federal Communications Commission (FCC) to fix this program in a fair, affordable fashion.
• Please urge your U.S. Representative to co-sponsor H.R. 1582 and urge your U.S. Senators to co-sponsor S. 1380!

The core purpose of the Federal Universal Service Fund (USF) is to keep telephone service affordable and up-to-date in high cost rural areas. However, most rural areas in the United States receive little or no USF support if they happen to be served by one of the so-called "non-rural" carriers that serve both urban and rural areas. Under the FCC's current high cost model, three states (MS, AL, WV) receive 83% of the $233 million available. Five states (ME, VT, KY, WY, MT) receive 17%. 42 states including all but two states (WY, MT) west of the Mississippi receive nothing.

In the Telecommunications Act of 1996, Congress sought to create a truly national universal service fund to ensure that telephone rates remain affordable throughout the entire country. Adequate universal service funding is also necessary to maintain sufficient investment in rural telecommunications infrastructure, which is essential if these communities are to fully participate in the Information Age economy. Under the FCC's current program, neither of these important policy goals is being fulfilled.

H.R. 1582 and S. 1380 would fulfill these policy goals by ensuring a more equitable distribution of funds in all rural areas, not just a chosen few. However, there would not be any increase in phone rates, consumer surcharges or overall federal spending.

Click here to review H.R. 1582, the Universal Service Fairness Act of 2003.
Click here to review S. 1380, the Rural Universal Service Equity Act of 2003.

The National Grange has been a strong supporter of the goals of the USF for high cost rural areas. The National Grange has recently entered into the CLEAR (Coalition for Equitable and Affordable Rural Service) working to reform the USF. Also, the Legislative Director of National Grange, Leroy Watson has sent a letter to Senator Gordon Smith and Representative Lee Terry in support of the USF reform legislations, H.R. 1582 and S. 1380. Click here to read the letter sent to Sen. Smith and Rep. Terry.

Action Plan --- Please urge your U.S. Representative to co-sponsor H.R. 1582 and urge your U.S. Senators to co-sponsor S. 1380!

Contact information for U.S. House Representative
Contact information for U.S. Senators

If you have any questions or comments please contact Legislative Research Analyst Chil-Sook Hwang by fax: 202-347-1091 or by phone: 1-888-4GRANGE, ext 109. Thank you for your grassroots participation in the National Grange Legislative program.

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