Letter to Senator Gordon Smith and Rep. Lee Terry
To support The Universal Service Fund Reform Legislation

September 12, 2003

Dear Senator Smith and Representative Terry:

The National Grange, this nation's oldest general farm and rural public interest organization applauds your recent introduction of S. 1380, the Rural Universal Service Equity Act of 2003 and H.R. 1582, the Universal Service Fairness Act of 2003, legislation to restore basic fairness to the distribution of the Federal Universal Service Fund for high-cost rural areas.

Founded in 1867, today the National Grange represents nearly 300,000 individual Grange members who are affiliated with 3000 local, county and state Grange chapters across rural America. We strongly believe that affordable, high-quality telecommunications services are crucial to the economic development and quality of life in the predominantly rural areas where our members live. As such, the National Grange has been a strong supporter of the goals of the Federal Universal Service Fund for high cost rural areas.

We are concerned that under regulations adopted by the Federal Communications Commission in 1999, most rural consumers in high cost areas receive little or no support from the Universal Service Fund if they are served by one of the "non-rural" telephone carriers. The current formula for this portion of the USF provides zero support to many of the most rural areas in America.

The legislation you have introduced, S. 1380 and H.R. 1582, would correct the current USF formula in a common sense, fair manner. The National Grange supports this legislation and looks forward to working with you to enact this vitally needed legislation.

Please contact me by phone at 202-628-3507 x114, by fax at 202-347-1091 or by e-mail at lwatson@nationalgrange.org if I can be of any assistance.

Sincerely,

Leroy Watson, Director of Legislative Affairs
The National Grange of the Order of Patrons of Husbandry