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Talks on Repack Funding in Omnibus Largely 'Resolved' Despite Ongoing Negotiations, Walden Says

Top telecom-focused lawmakers said they were finalizing a deal to attach the House-passed Repack Airwaves Yielding Better Access for Users of Modern Services (Ray Baum's) Act FCC reauthorization and spectrum legislative package (HR-4986) to the FY 2018 omnibus spending bill. Negotiations on other parts of the measure were continuing Thursday night. The leaders of the House and Senate Commerce committees have been eyeing the omnibus as a vehicle for enacting HR-4986 since last month, before the House passed the legislation (see 1802270055, 1803010056 and 1803060046). The Clarifying Lawful Overseas Use of Data Act (HR-4943/S-2383) could also be included in the omnibus (see 1803150059).

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The timeline for the omnibus appeared to be slipping amid continued wrangling over a host of controversial proposals. House leaders originally aimed to vote Friday. The current continuing resolution to fund the government will expire March 23. Unresolved issues include a GOP-proposed three-year immigration law fix, funding for the New York City area Gateway rail project and a bid by Rep. Kristi Noem, R-S.D., to attach her Remote Transactions Parity Act (HR-2193), industry lobbyists said. HR-2193 and Senate companion the Marketplace Fairness Act (S-976) would allow states to collect sales taxes from companies that have no physical presence in the state (see 1704280036). Sens. Ted Cruz, R-Texas, Steve Daines, R-Mont., and Ron Wyden, D-Ore., opposed including HR-2193/S-976 in the omnibus (see 1803080066 and 1803130059).

A deal on additional incentive auction repack funding appeared to be “resolved” Thursday, House Commerce Chairman Greg Walden, R-Ore., told us. “I think we're in a good place on that, but you know how these things are. Every time I think everything's bedded down, it gets up and walks away.” Lawmakers appeared to be coalescing around a plan to break up a planned $1 billion in additional funding over a two-year period -- $600 million would be available for repack reimbursements the first year and $400 million the next year, informed people said. The House-passed version of HR-4986 included language from the Viewer Protection Act (HR-3347) to authorize the additional funding but not a definitive appropriations figure. HR-4986's supporters have “had good cooperation from one end of [the Capitol] to the other,” Walden said. “I think everybody realizes [the incentive auction] has been very beneficial to taxpayers and we need to complete the auction process and keep our commitment to those who need to move in the repack.”

House Appropriations Financial Services Subcommittee Chairman Tom Graves, R-Ga., whose subcommittee has jurisdiction over the FCC budget, told us he’s optimistic “we’ll be able to do what’s necessary for [broadcasters] to get their job done” via additional repack funding. Walden told reporters Wednesday evening he was among lawmakers who would have preferred to appropriate the $1 billion as a lump sum but is willing to allow a two-year timeline. Congress should dole out "the bulk [of the funding] in the first year because a lot of movement’s beginning to take place," he said. Senate Commerce Chairman John Thune, R-S.D., told reporters he also believes "you can assume it’ll be a little more hopefully in the first year than the second.”