House FCC Hearing Seen Having Slightly Diminished Focus on Trump's NBC License Comments

The subcommittee proposed the hearing at the same time Democrats were pushing for FCC Chairman Ajit Pai and the other commissioners to disavow Trump's comments publicly (see 1710120028 and 1710240062). Pai has since said the FCC doesn't have the power to revoke a station's license based on content, not fully satisfying Democrats (see 1710170022). The hearing will begin at 2 p.m. in 2322 Rayburn.

Pai and other commissioners didn't address the Trump comments in their written testimony released Tuesday but all three Republican commissioners talked about FCC response to recent natural disasters including Hurricanes Harvey, Irma and Maria. Pai focused on his progress with FCC regulatory revamps, curbing robocalls and closing the digital divide. Commissioner Mike O'Rielly praised Pai's work to increase FCC transparency and repeated his recent call for the U.S. to take on a bigger leadership role at ITU (see 1710050055). Commissioner Brendan Carr emphasized his interest in being the jobs commissioner (see 1708250024), noting the 5G transition's potential impact.

Commissioner Mignon Clyburn focused on her concerns that Pai's recent actions “are jeopardizing” the FCC role “as the referee on the field protecting consumers and small business interests.” She cited the “sizable number of process fouls” the FCC committed since the start of Pai's chairmanship, including the February staff actions she previously cited as a ”Friday news dump” (see 1702030058). Rosenworcel's written testimony wasn't available.

House Commerce Committee Chairman Greg Walden, R-Ore., told us "there's a lot we're working on” for the hearing. He noted his ongoing interest in how to provide additional funds to supplement the existing $1.75 billion Broadcaster Relocation Fund for post-incentive auction repacking reimbursements and his desire to reach a compromise on net neutrality legislation. House Commerce Republicans' prehearing memo mentions net neutrality and repacking among eight topics lawmakers would like to probe. Also possibly up are administration of the Lifeline USF program, media ownership issues, FirstNet, commission response to recent hurricanes, FCC reauthorization and commission process revamps.

Subcommittee Chairman Marsha Blackburn, R-Tenn., told us she also has “a list of things” she wants to talk about with commissioners, highlighting special interest in spectrum issues. She also wants to talk about the revised draft of her FCC Reauthorization Act that House Communications cleared earlier this month on a bipartisan voice vote (see 1710110070). Subcommittee Vice Chairman Leonard Lance, R-N.J., told us he wants to “discuss how we can preserve the freedom of the internet,” noting concerns about Russian interference (see 1710240069).

FCC Rechartering

“We're really close” to a final deal on the FCC Reauthorization Act's language ahead of formal introduction and a full committee markup, Blackburn said. “My hope is that we get this done before Thanksgiving and get it over to the Senate. There's just a couple of outstanding pieces and I think we can finish that up quickly and move it to the full committee.”

It's not clear House Communications Democrats will have much interest in talking about Blackburn's bill, since it was already a topic at the subcommittee's last FCC oversight hearing (see 1707250059) and due to the progress toward bipartisan agreement on the legislation, a Democratic aide told us: “We've got a lot of issues” to talk about and “are we going to ask the commissioners 'should we reauthorize you?'”

Pai praised the revised version of Blackburn's bill for including language that would allow spectrum auction deposits to be sent directly to the Treasury Department. “Without it, the FCC won't be able to launch a large spectrum auction for the foreseeable future,” he said. “This is critical if America is going to lead the world in 5G.” O'Rielly urged the panel to “consider splitting off” the Treasury language from the revised Blackburn draft and move it as a “rifle shot through the legislative process” in case it takes longer than expected to reauthorize the FCC.

'Softball' Questions, Ownership

Subcommittee Republican leaders are aiming to forestall a more contentious and lengthy focus on the commissioners' views on Trump's license comments by leading off with “softball” questions, said two Republican telecom lobbyists and one Democratic lobbyist.

Republican offices have expressed interest in providing “some air cover” to Pai on issues beyond the Trump controversy, including net neutrality, one GOP lobbyist said. Staff also is aiming to tee up wireless issues ahead of a possible hearing later this year, the lobbyist said.

“I'm sure [the Democrats] are going to have some questions” for the commissioners on Trump's comments, “but I think Chairman Pai already talked about that, don't you?” Blackburn said. “He's laid that to rest. But if they want to take up their time chatting about that, that is perfectly fine.” Democrats still plan to talk about Trump's comments and their First Amendment implications, but they aren't making it their sole focus, a Democratic House aide said. The aide previously noted expectations that Republicans will try to bring a debate on the topic to a swift conclusion.

House Communications ranking member Mike Doyle, D-Pa., told reporters he plans "an interesting line of questioning" for the hearing. Democrats plan to “pay a fair amount of attention” to media ownership, particularly as debate about Sinclair's proposed buy of Tribune heats up (see 1710240049), a Democratic aide said: “Our members will continue to be focused on net neutrality” given an upcoming vote on its NPRM to rescind 2015 net neutrality rules and related reclassification of broadband as a Communications Act Title II service.

Two communications sector lobbyists expect Democrats to again focus on net neutrality, especially amid chatter about a possible House Judiciary Committee hearing next month about the FTC's role in neutrality. House Judiciary didn't comment.