Senators, Witnesses Say Infrastructure Proposal Must Go Beyond Public-Private Partnerships

“I will be asking the Congress to approve legislation that produces a $1 trillion investment in the infrastructure of the United States -- financed through both public and private capital -- creating millions of new jobs,” Trump told a joint session of Congress. His administration hasn't offered a precise plan despite regular contact with lawmakers.

Details of payments are still unfolding, senators acknowledged. “That’s where it gets a little sensitive,” ranking member Bill Nelson, D-Fla., said. During his opening statement Wednesday, Nelson urged Congress to include funding to upgrade 911 systems, part of draft legislation he’s putting together with Sen. Amy Klobuchar, D-Minn. (see 1702280062). She also cited the bill during the hearing.

Chairman John Thune, R-S.D., has argued for weeks that public-private partnerships, or P3s, may not be sufficient for rural areas, which witnesses and some senators said was correct. “The legislation can’t be limited to P3s as a solution,” said Dennis Daugaard, Republican governor of South Dakota. “I know P3 doesn’t work” in some of communities, said Sen. Catherine Cortez Masto, D-Nev., discussing rural broadband. NTCA CEO Shirley Bloomfield said “tax incentives may not move the needle on investments” in certain economically challenged areas. “A lot” can be funded through public-private partnerships but not everywhere, Nelson said, naming parts of his state where that wouldn't work. Sen. Ted Cruz, R-Texas, who demanded regulatory overhauls in the infrastructure bill, said it “may well be moving through Congress this year.”

In many parts of the U.S., “it is simply not economical to build broadband systems, leaving some communities behind,” Thune said in his opening statement. “The federal government and many states have stepped in to address this funding gap, augmenting private capital with limited, but crucial, government support.” Policymakers must “examine existing programs to determine how best to improve their efficacy,” Thune said. “We need to explore new ways to reduce the cost of broadband, like reducing regulatory obstacles to deployment.”

Sen. Ron Johnson, R-Wis., complained of accountability, alleging hundreds of billions of dollars of the Obama administration stimulus program is “just gone,” with only a fraction going to infrastructure. Daugaard told him the states can assume more control of the funds and make choices about its spending. Johnson noted a “pretty unanimous opinion” from witnesses about allocating money to states and holding them accountable. Thune also asked about avoiding what he considered mistakes of the earlier Obama stimulus effort. Bloomfield said "broadband is actually a pretty hard business" and that money should be given to those that know what they are doing. "We've learned some lessons from the last go around," Bloomfield told Thune.

Bloomfield urged Congress to defer to using the existing structures of the FCC to aid in broadband deployment. Senators turned to her with questions about USF -- which Bloomfield kept saying was insufficient -- and how to use funds. Sen. Jerry Moran, R-Kan., said there’s “conflict” between the FCC and Rural Utilities Service at times on broadband funding, wondering which federal entities to eye. RUS “has not met its lending maximum for the last several years,” Bloomfield testified. Sen. Maggie Hassan, D-N.H., asked about the digital divide. Bloomfield told Hassan “we can do a better job as a whole of connecting the dots.” Thune asked about broadband on tribal lands, and Bloomfield noted FCC talk of a tribal fund.

Sen. Deb Fischer, R-Neb., inquired about the FCC’s possible remote areas fund and lack of action. “There will always be a need,” Bloomfield said, expecting more information as soon as next week. Fischer also questioned the number of funds, with a struggle marshaling all them. “I’d like to see more significant investment” in broadband, said Sen. Shelley Moore Capito, R-W.Va., pressing Bloomfield to tally off the many benefits beyond economic development. Sen. Ed Markey, D-Mass., cited E-rate and asked Bloomfield if she would oppose cuts. Her concerns are overbuilding of private providers, she said: “The core of the E-rate program remains to be critical.” Cruz asked about 5G and freeing up spectrum, prompting Bloomfield to talk about auctioning smaller amounts of spectrum. “We’d like to get in the game,” she said of her members.

Utah Department of Transportation Executive Director Carlos Braceras urged Congress to “protect” the spectrum that enables dedicated short range communications, speaking at length about autonomous vehicles and those future needs. “The DSRC spectrum is critical for allowing our vehicles to talk to each other,” he told senators.

Russell Moore, a USTelecom board member and general manager for Big Bend Telephone, wrote an opinion piece for Morning Consult pressing for attention to broadband. The broadband industry (see 1702280053) "is urging Congress to build a simple road map to truly deliver on the promise of universal connectivity for all Americans,” Moore said. Mayors urged a focus on broadband access and affordability with an emphasis on local solutions.