Federated Hermes Short-Term Government Fund SS Class (FSGIX) N-CSRS Certified semi-annual shareholder report (management investment company)

                               United States
                    Securities and Exchange Commission
                          Washington, D.C. 20549

                                Form N-CSR

Certified Shareholder Report of Registered Management Investment Companies


                                 811-3947
                    (Investment Company Act File Number)


           Federated U.S. Government Securities Fund: 1-3 Years

            (Exact Name of Registrant as Specified in Charter)



                         Federated Investors Funds
                           5800 Corporate Drive
                    Pittsburgh, Pennsylvania 15237-7000


                              (412) 288-1900
                      (Registrant's Telephone Number)


                        John W. McGonigle, Esquire
                         Federated Investors Tower
                            1001 Liberty Avenue
                    Pittsburgh, Pennsylvania 15222-3779
                  (Name and Address of Agent for Service)
             (Notices should be sent to the Agent for Service)


                     Date of Fiscal Year End: 2/29/04

            Date of Reporting Period: Six months ended 8/31/03



Item 1.     Reports to Stockholders

Federated Investors
World-Class Investment Manager

Federated U.S. Government Securities Fund: 1-3 Years

SEMI-ANNUAL SHAREHOLDER REPORT

August 31, 2003

Institutional Shares
Institutional Service Shares
Class Y Shares

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

Financial Highlights -- Institutional Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Year Ended February 28 or 29,
	8/31/2003		2003		2002		2001		2000		1999
Net Asset Value, Beginning of Period	$10.82		$10.70		$10.53		$10.28		$10.44		$10.41
Income From Investment Operations:
Net investment income	0.11		0.31		0.46		0.60		0.50		0.50
Net realized and unrealized gain (loss) on investments	(0.08	)	0.12		0.17		0.25		(0.16	)	0.03
TOTAL FROM INVESTMENT OPERATIONS	0.03		0.43		0.63		0.85		0.34		0.53
Less Distributions:
Distributions from net investment income	(0.11	)	(0.31	)	(0.46	)	(0.60	)	(0.50	)	(0.50	)
Net Asset Value, End of Period	$10.74		$10.82		$10.70		$10.53		$10.28		$10.44
Total Return1	0.24	%	4.10	%	6.07	%	8.51	%	3.29	%	5.19	%
Ratios to Average Net Assets:
Expenses	0.54	%2	0.54	%	0.54	%	0.54	%	0.54	%	0.54	%
Net investment income	1.96	%2	2.88	%	4.34	%	5.76	%	4.81	%	4.78	%
Expense waiver/reimbursement3	0.26	%2	0.27	%	0.27	%	0.25	%	0.28	%	0.27	%
Supplemental Data:
Net assets, end of period (000 omitted)	$417,702		$456,096		$365,090		$399,582		$461,506		$591,317
Portfolio turnover	52	%	76	%	99	%	129	%	171	%	207	%

1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

2 Computed on an annualized basis.

3 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Financial Highlights -- Institutional Service Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Year Ended February 28 or 29,
	8/31/2003		2003		2002		2001		2000		1999
Net Asset Value, Beginning of Period	$10.82		$10.70		$10.53		$10.28		$10.44		$10.41
Income From Investment Operations:
Net investment income	0.09		0.28		0.43		0.57		0.48		0.47
Net realized and unrealized gain (loss) on investments	(0.08	)	0.13		0.17		0.25		(0.17	)	0.03
TOTAL FROM INVESTMENT OPERATIONS	0.01		0.41		0.60		0.82		0.31		0.50
Less Distributions:
Distributions from net investment income	(0.09	)	(0.29	)	(0.43	)	(0.57	)	(0.47	)	(0.47	)
Net Asset Value, End of Period	$10.74		$10.82		$10.70		$10.53		$10.28		$10.44
Total Return1	0.12	%	3.84	%	5.81	%	8.25	%	3.03	%	4.93	%
Ratios to Average Net Assets:
Expenses	0.79	%2	0.79	%	0.79	%	0.79	%	0.79	%	0.79	%
Net investment income	1.71	%2	2.63	%	4.04	%	5.55	%	4.48	%	4.50	%
Expense waiver/reimbursement3	0.26	%2	0.27	%	0.27	%	0.25	%	0.28	%	0.27	%
Supplemental Data:
Net assets, end of period (000 omitted)	$73,876		$82,109		$66,642		$55,233		$29,255		$50,527
Portfolio turnover	52	%	76	%	99	%	129	%	171	%	207	%

1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

2 Computed on an annualized basis.

3 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Financial Highlights -- Class Y Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 8/31/2003		Year Ended 2/28/03		Period Ended 2/28/2002	1
Net Asset Value, Beginning of Period	$10.82		$10.70		$10.60
Income From Investment Operations:
Net investment income	0.12		0.34		0.25
Net realized and unrealized gain (loss) on investments	(0.08	)	0.12		0.10
TOTAL FROM INVESTMENT OPERATIONS	0.04		0.46		0.35
Less Distributions:
Distributions from net investment income	(0.12	)	(0.34	)	(0.25	)
Net Asset Value, End of Period	$10.74		$10.82		$10.70
Total Return2	0.36	%	4.35	%	3.32	%
Ratios to Average Net Assets:
Expenses	0.30	%3	0.30	%	0.30	%3
Net investment income	2.17	%3	3.12	%	4.03	%3
Expense waiver/reimbursement4	0.25	%3	0.26	%	0.26	%3
Supplemental Data:
Net assets, end of period (000 omitted)	$136,035		$100,036		$75,240
Portfolio turnover	52	%	76	%	99	%

1 Reflects operations for the period from August 1, 2001 (date of initial public investment) to February 28, 2002.

2 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

3 Computed on an annualized basis.

4 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

August 31, 2003 (unaudited)

Principal Amount				Value
			U.S. TREASURY NOTES--84.7%
$	15,000,000		3.625%, 3/31/2004	$	15,219,150
	26,000,000		3.375%, 4/30/2004		26,387,920
	17,000,000		3.250%, 5/31/2004		17,258,910
	32,000,000		2.875%, 6/30/2004		32,432,640
	45,000,000		2.250%, 7/31/2004		45,404,100
	26,000,000		2.125%, 8/31/2004		26,211,120
	25,000,000		1.875%, 9/30/2004		25,148,500
	15,000,000		2.125%, 10/31/2004		15,126,600
	10,000,000		5.875%, 11/15/2004		10,525,000
	25,000,000		7.875%, 11/15/2004		26,902,250
	15,000,000		2.000%, 11/30/2004		15,100,800
	32,000,000		1.625%, 1/31/2005		32,034,880
	35,000,000		1.500%, 2/28/2005		34,950,650
	25,000,000		1.625%, 3/31/2005		24,988,250
	21,000,000		1.625%, 4/30/2005		20,970,390
	20,000,000		1.125%, 6/30/2005		19,756,200
	25,000,000		1.500%, 7/31/2005		24,824,250
	23,000,000		4.625%, 5/15/2006		24,387,130
	25,485,000		7.000%, 7/15/2006		28,694,581
	41,000,000		2.375%, 8/15/2006		40,884,790
	22,000,000		6.500%, 10/15/2006		24,567,840
			TOTAL U.S. TREASURY NOTES (IDENTIFIED COST $530,194,930)		531,775,951
			GOVERNMENT AGENCIES--14.2%
			Federal Home Loan Bank--10.3%
	26,000,000		4.875%, 4/16/2004		26,600,080
	10,000,000		4.750%, 6/28/2004		10,290,300
	12,000,000		3.875%, 12/15/2004		12,351,240
	15,000,000		4.375%, 2/15/2005		15,558,150
			TOTAL		64,799,770
			Federal National Mortgage Association--3.9%
	23,000,000		6.500%, 8/15/2004		24,104,460
			TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $87,294,539)		88,904,230
Shares				Value
			MUTUAL FUND--1.1%
$	6,649,880	1	Government Obligations Fund (at net asset value)	$	6,649,880
			TOTAL INVESTMENTS--100% (IDENTIFIED COST $624,139,349)2		627,330,061
			OTHER ASSETS AND LIABILITIES - NET--0.0%		282,299
			TOTAL NET ASSETS--100%	$	627,612,360

1 Affiliated company.

2 The cost of investments for federal tax purposes amounts to $624,139,349.

Note: The categories of investments are shown as a percentage of total net assets at August 31, 2003.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

August 31, 2003 (unaudited)

Assets:
Total investments in securities, at value including $6,649,880 of investments in affiliated issuers (identified cost $624,139,349)			$	627,330,061
Income receivable				4,880,452
Receivable for shares sold				489,220
Prepaid expenses				20,403
TOTAL ASSETS				632,720,136
Liabilities:
Payable for shares redeemed	$	4,347,255
Payable to bank		338,693
Payable for transfer and dividend disbursing agent fees and expenses (Note 5)		21,219
Payable for Director's/Trustees' fees		870
Payable for portfolio accounting fees (Note 5)		16,422
Payable for distribution services fees (Note 5)		18,656
Payable for shareholder services fee (Note 5)		103,057
Income distribution payable		261,604
TOTAL LIABILITIES				5,107,776
Net assets for 58,458,963 shares outstanding			$	627,612,360
Net Assets Consist of:
Paid in capital			$	627,493,809
Net unrealized appreciation of investments				3,190,712
Accumulated net realized loss on investments				(3,053,077	)
Distributions in excess of net investment income				(19,084	)
TOTAL NET ASSETS			$	627,612,360
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
$417,701,996 ÷ 38,906,533 shares outstanding				$10.74
Institutional Service Shares:
$73,875,854 ÷ 6,881,565 shares outstanding				$10.74
Class Y Shares:
$136,034,510 ÷ 12,670,865 shares outstanding				$10.74

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended August 31, 2003 (unaudited)

Investment Income:
Interest							$	7,941,032
Dividends (received from affiliated issuers)								87,748
TOTAL INCOME								8,028,780
Expenses:
Investment adviser fee (Note 5)				$	1,286,559
Administrative personnel and services fee (Note 5)					241,873
Custodian fees					15,162
Transfer and dividend disbursing agent fees and expenses (Note 5)					86,129
Directors'/Trustees' fees					6,519
Auditing fees					7,370
Legal fees					2,454
Portfolio accounting fees (Note 5)					59,325
Distribution services fee--Institutional Service Shares (Note 5)					97,157
Shareholder services fee--Institutional Shares (Note 5)					562,864
Shareholder services fee--Institutional Service Shares (Note 5)					97,157
Share registration costs					33,912
Printing and postage					24,804
Insurance premiums					1,310
Miscellaneous					12,029
TOTAL EXPENSES					2,534,624
Waivers and Reimbursement (Note 5):
Waiver/reimbursement of investment adviser fee	$	(789,029	)
Waiver of shareholder services fee--Institutional Shares		(22,515	)
Waiver of shareholder services fee--Institutional Service Shares		(3,886	)
Waiver of transfer and dividend disbursing agent fees and expenses		(7,741	)
TOTAL WAIVERS AND REIMBURSEMENT					(823,171	)
Net expenses								1,711,453
Net investment income								6,317,327
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments								1,884,793
Net change in unrealized appreciation of investments								(6,718,301	)
Net realized and unrealized loss on investments								(4,833,508	)
Change in net assets resulting from operations							$	1,483,819

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) 8/31/2003			Year Ended 2/28/2003
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	6,317,327		$	15,997,683
Net realized gain on investments		1,884,793			5,248,065
Net change in unrealized appreciation/depreciation of investments		(6,718,301	)		857,424
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		1,483,819			22,103,172
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(4,416,266	)		(11,048,199	)
Institutional Service Shares		(665,501	)		(2,231,289	)
Class Y Shares		(1,252,755	)		(2,723,518	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(6,334,522	)		(16,003,006	)
Share Transactions:
Proceeds from sale of shares		269,226,240			456,126,192
Net asset value of shares issued to shareholders in payment of distributions declared		4,370,000			11,515,677
Cost of shares redeemed		(279,374,204	)		(342,472,992	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(5,777,964	)		125,168,877
Change in net assets		(10,628,667	)		131,269,043
Net Assets:
Beginning of period		638,241,027			506,971,984
End of period (including distributions in excess of net investment income of $(19,084) and $(1,889), respectively)	$	627,612,360		$	638,241,027

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

August 31, 2003 (unaudited)

1. ORGANIZATION

Federated U.S. Government Securities Fund: 1-3 Years (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. The Fund offers three classes of shares: Institutional Shares, Institutional Service Shares and Class Y Shares. The investment objective of the Fund is to provide current income.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP") in the United States of America.

Investment Valuation

U.S. government securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Investments in other open-end, regulated investment companies are valued at net asset value. Securities for which no quotations are readily available are valued at fair value as determined in good faith using methods approved by the Board of Trustees (the "Trustees").

Repurchase Agreements

It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Trustees. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. The Fund offers multiple classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Fund based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discount on fixed income securities are amortized/accreted.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of their income. Accordingly, no provision for federal tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis.

3. SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value) for each class of shares.

Transactions in capital stock were as follows:

	Six Months Ended 8/31/2003					Year Ended 2/28/2003
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	9,743,047		$	105,297,601		21,285,715		$	229,370,553
Shares issued to shareholders in payment of distributions declared	233,680			2,523,108		634,775			6,830,479
Shares redeemed	(13,228,310	)		(143,049,840	)	(13,894,337	)		(149,356,846	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(3,251,583	)	$	(35,229,131	)	8,026,153		$	86,844,186
	Six Months Ended 8/31/2003					Year Ended 2/28/2003
Institutional Service Shares:	Shares			Amount		Shares			Amount
Shares sold	5,811,564		$	62,647,028		12,280,209		$	132,135,249
Shares issued to shareholders in payment of distributions declared	55,148			595,431		182,167			1,961,548
Shares redeemed	(6,575,021	)		(70,948,778	)	(11,102,793	)		(119,610,602	)
NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS	(708,309	)	$	(7,706,319	)	1,359,583		$	14,486,195
	Six Months Ended 8/31/2003					Year Ended 2/28/2003
Class Y Shares:	Shares			Amount		Shares			Amount
Shares sold	9,360,793		$	101,281,611		8,789,846		$	94,620,390
Shares issued to shareholders in payment of distributions declared	115,974			1,251,461		253,072			2,723,650
Shares redeemed	(6,052,689	)		(65,375,586	)	(6,830,233	)		(73,505,544	)
NET CHANGE RESULTING FROM CLASS Y SHARE TRANSACTIONS	3,424,078		$	37,157,486		2,212,685		$	23,838,496
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(535,814	)	$	(5,777,964	)	11,598,421		$	125,168,877

4. FEDERAL TAX INFORMATION

At August 31, 2003, the cost of investments for federal tax purposes was $624,139,349. The net unrealized appreciation of investments for federal tax purposes was $3,190,712. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $4,104,546 and net unrealized depreciation from investments for those securities having an excess of cost over value of $913,834.

At February 28, 2003, the Fund had a capital loss carryforward $4,937,870 which will reduce the Fund's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

Expiration Year	Expiration Amount
2008	$2,364,261
2009	$2,573,609

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.40% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund may invest in Government Obligations Fund, which is managed by the Adviser. The Adviser has agreed to reimburse certain investment adviser fees as a result of these transactions. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $87,748 for the period.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement ("Agreement"), provides the Fund with administrative personnel and services. The fee paid to FServ is based on the aggregate daily net assets of all Federated funds as specified below:

Maximum Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
0.150%	on the first $250 million
0.125%	on the next $250 million
0.100%	on the next $250 million
0.075%	on assets in excess of $750 million

The administrative fee received during any fiscal year shall be at least $125,000 per portfolio and $30,000 per each additional class of Shares.

On August 22, 2003 the Directors'/Trustees' approved a new Agreement. Effective November 1, 2003, the fee paid to FServ will be based on the aggregate daily net assets of all Federated funds as specified below:

Maximum Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
0.150%	on the first $5 billion
0.125%	on the next $5 billion
0.100%	on the next $10 billion
0.075%	on assets in excess of $20 billion

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares.

FServ may voluntarily choose to waive any portion of its fee. FServ can modify or terminate this voluntary waiver at any time at its sole discretion.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Institutional Service Shares. The Plan provides that the Fund may incur distribution expenses up to 0.25% of the average daily net assets of the Institutional Service Shares, annually, to compensate FSC. FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund's Institutional Shares and Institutional Service Shares for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. FServ may voluntarily choose to waive any portion of its fee. FServ can modify or terminate this voluntary waiver at any time at its sole discretion.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the householding program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of householding. Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of householding at any time by calling 1-800-341-7400.

Federated Investors
World-Class Investment Manager

Federated U.S. Government Securities Fund: 1-3 Years
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 31428M100
Cusip 31428M209
Cusip 31428M308

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

G01436-01 (10/03)

Item 2.     Code of Ethics

            Not Applicable

Item 3.     Audit Committee Financial Expert

            Not Applicable

Item 4.     Principal Accountant Fees and Services

            Not Applicable

Item 5      Audit Committee of Listed Registrants

            Not Applicable

Item 6      [Reserved]

Item 7.     Disclosure of Proxy Voting Policies and Procedures for
            Closed-End Management Investment Companies

            Not Applicable

Item 8.     [Reserved]

Item 9.     Controls and Procedures

(a)  The   registrant's   President  and  Treasurer   have  concluded  that  the
     registrant's  disclosure  controls  and  procedures  (as  defined  in  rule
     30a-3(c)  under the Act) are  effective  in design  and  operation  and are
     sufficient to form the basis of the certifications required by Rule 30a-(2)
     under the Act, based on their evaluation of these  disclosure  controls and
     procedures within 90 days of the filing date of this report on Form N-CSR.

(b)  There were no changes in the  registrant's  internal control over financial
     reporting  (as defined in rule  30a-3(d)  under the Act),  or the  internal
     control over financial  reporting of its service  providers during the last
     fiscal  half  year  (the  registrant's  second  half year in the case of an
     annual report) that have materially  affected,  or are reasonably likely to
     materially  affect,  the  registrant's   internal  control  over  financial
     reporting.

Item 10.    Exhibits


                                   SIGNATURES

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

Registrant  Federated U.S. Government Securities Fund: 1-3 Years
By          /S/ Richard J. Thomas, Principal Financial Officer
Date        October 23, 2003


Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment  Company  Act of  1940,  this  report  has been  signed  below by the
following  persons on behalf of the  registrant and in the capacities and on the
dates indicated.


By          /S/ J. Christopher Donahue, Principal Executive Officer
Date        October 23, 2003


By          /S/ Richard J. Thomas, Principal Financial Officer
Date         October 23, 2003