Ross Defends Commerce Funding Request, With Cuts Affecting Spectrum, Broadband
The Trump administration’s FY 2018 proposal of $36 million to fund NTIA “will assist” with “development and implementation of policies to meet challenges related to Internet openness, privacy, security, and the digital economy,” Commerce Secretary Wilbur Ross said in written testimony before House appropriators Thursday. Ross didn’t note this is a cut in NTIA funding -- FY 2017 funding was about $39.4 million, lower than the $50.9 million the Obama administration requested. Cuts will portend challenges for its spectrum and broadband work.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Commerce’s request justification showed the “advanced communications research” work by NTIA would face a cut of nearly $1.5 million and lose three full-time equivalent (FTE) workers. “The decrease will impact spectrum sharing research, especially collaboration efforts underway with the FCC and other Federal Agencies to represent Federal stakeholders in the development of certification processes for spectrum sharing systems that make more spectrum available for commercial use while continuing to protect critical Federal incumbent users (such as radars and satellite downlinks) from interference,” NTIA said.
Its BroadbandUSA would face a cut of more than $1.86 million and lose five FTEs. “Insufficient funding to support BroadbandUSA adequately” will prevent states “across America from Nevada to Wisconsin to New York from meeting their goals, as their governors count broadband access as a top state priority critical to economic development,” the risk assessment said: The cuts “increase the potential for waste, fraud, and abuse due to inadequate program oversight” and “compromise NTIA’s ability to identify, recover, and return funds to the Treasury.” They “preclude the documentation and sharing of BTOP [Broadband Technology Opportunities Program] lessons learned and best practices.” BroadbandUSA will cut its group technical assistance workshops from four to three in this fiscal year.
A risk assessment for the Office of Spectrum Management, which faces no loss of money or FTEs, said the overall funding cuts “will eliminate or significantly delay information technology investments to modernize and improve automated capabilities in support of the federal spectrum management mission” and “would impact NTIA’s ability to support federal government operations and directly hamper other federal agencies’ ability to satisfy their mission requirements.” Spending will drop on domestic and international policy by about $843,000, NTIA said. It will kill administrative costs by reducing IT help desk hours and shifting staffing due to a shared service effort: “NTIA will have difficulty working with the FCC to represent Federal stakeholders in the development of certification processes for spectrum sharing systems that make more spectrum available for commercial use while continuing to protect critical Federal incumbent users.”
'Stringent'
“We’re in a very stringent period,” Ross told appropriators. The topline figure “will strengthen its multistakeholder approach to address Internet policymaking, standards development, and related governance issues,” Ross said. “Efforts include development and presenting U.S. government policy positions at interagency, bilateral, multilateral and international organizational meetings and stakeholder forums.” Lawmakers didn’t raise or discuss NTIA during the Thursday hearing, focusing instead on such Commerce issues as the 2020 census. The administration nominated David Redl to lead NTIA earlier this month (see 1705170056). The House Commerce Committee -- where Redl spent his recent years working -- is putting together NTIA reauthorization legislation.
The budget is seen as unlikely to pass as drafted. House Appropriations Commerce, Justice, Science and Related Agencies Subcommittee Chairman John Culberson, R-Texas, referred to it as “reshaping” Commerce. It’s a 15 percent decrease from 2017 enacted levels, ranking member Jose Serrano, D-N.Y., lamented: “These budgetary proposals, in total, represent a betrayal of many of the very individuals who voted for President [Donald] Trump -- individuals who reside in areas that are hurting economically and that are greatly helped by the programs this budget seeks to eliminate.” Commerce also posted request justifications for the National Institute of Standards and Technology and Patent and Trademark Office.
House Appropriations Committee Chairman Rodney Frelinghuysen, R-N.J., called NIST a “crown jewel” and said cybersecurity affects all the U.S. Rep. John Carter, R-Texas, wondered about critical infrastructure cybersecurity. “Part of the Department of Commerce’s function is to take a leading role in the interagency activities relating to cybersecurity,” Ross told him, expecting the problem to last decades. “We take it very seriously.” Commerce will maintain a leadership role, Ross said. He noted hackers will go after businesses: “Some of the hackers are more interested in getting blackmail money or protection money, so they tend to go after the larger targets.”
FY 2018 Plans
Among FY 2018 plans, “NTIA will assess and establish effective incentive-based reforms that enable federal agencies to improve their systems’ spectrum efficiency while maintaining or enhancing the essential services they provide,” it said. The agency pledged an update to spectrum.gov with information “regarding federal spectrum authorizations and access requirements.”
It promised to be active helping with spectrum legislation and FCC proceedings: “The views of the executive branch will be formulated and presented in dozens of new and ongoing FCC proceedings, including important matters addressing proposals to share millimeter wave spectrum (Spectrum Frontiers), the 3.5 GHz band, and the 1675-1680 MHz band.” NTIA will continue to implement 2015’s Spectrum Pipeline Act, it said, focused on changes to the Spectrum Relocation Fund spending and preparing reports on possible reallocation. “NTIA will help implement the FCC’s certification process for the Spectrum Access Systems and Environmental Sensing Capability components of the 3.5 GHz Citizens Broadband Radio Service regulations and develop innovative propagation assessment tools to enable dynamic spectrum access in the millimeter wave bands,” it said.
“In FY 2018, NTIA will convene a series of open, public meetings to encourage private-sector stakeholders to develop codes of conduct and best practices related to emerging technologies on issues such as privacy and intellectual property and will continue to address issues in a multistakeholder manner” and “will review online copyright protection provisions and develop positions on potential changes to U.S. copyright law in partnership with the U.S. Patent and Trademark Office,” the justification promised. “Working with the Census Bureau, NTIA will conduct a survey in FY 2018 to measure and analyze broadband adoption in the United States ... and inform consumers of the benefits of using broadband.”