The USF (Universal Service Fund) is a tax the FCC imposed on long distance carriers, to fund telecommunications expansion in rural areas, among other things.
USF usually appears on your PHONE bill as a small percentage (4%) of your long distance charges, or sometimes (AT&T) a flat rate, regardless of your charges.
Unfortunately, despite the FCC ruling that ISPs are not (yet) contributers to the USF Fee, some ISPs are charging it to the customer anyway, perhaps because they too are charged when they buy some telco services at retail prices (the FCC does not prohibit passing the tax along).
If you are charged a USF on your entire bill, object, as it is clearly profit for the ISP. The FCC itself has hinted that USF should not be passed onto consumers, and is not an internet access tax.

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