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FCC, FTC Allocations

Kennedy Sticks Public C-Band Auction Language in Senate Approps' FY20 Report

The report on the Senate Appropriations Financial Services Subcommittee-cleared FY 2020 budget bill, which includes funding for the FCC and FTC, has language aimed at pressuring the FCC to hold a public auction of spectrum on the 3.7-4.2 GHz C band, subcommittee Chairman John Kennedy, R-La., confirmed to us Tuesday. Some communications lobbyists expected the funding bill to include C-band language (see 1909160062). The subcommittee advanced the measure to the full committee on a voice vote. The full bill text and report isn't publicly available and won't be released until after the full committee marks it up Thursday.

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Kennedy gave little detail about what the C-band auction language says, but clarified it's part of the bill report, not a more powerful rider. “I haven't memorized it,” he said. Kennedy later told us he wants a "sharp directive" backing a public auction because the C-band spectrum is a valuable resource. A committee spokesperson wouldn't comment on what the report language says. Kennedy is one of several lawmakers who's pursuing C-band-centric legislation amid FCC consideration of how to clear spectrum in that range for 5G use (see 1908230049). Kennedy repeatedly raised concerns about the C-Band Alliance’s proposal for a private auction to free up 200 MHz of C-band spectrum (see 1907190051).

The measure would allocate $339 million to the FCC and its Office of Inspector General, the committee said. That's level with what the House allocated to the FCC in the FY 2020 funding bill the chamber passed in June and with FY 2019 (see 1906260081). It specifically allocates $132.5 billion for the FCC's spectrum auctions program. It also would give $312.3 million to the FTC, down $37 million from what the House allocated but on par with what President Donald Trump's administration proposed in March (see 1903110069).

The Tuesday markup included little discussion on telecom and tech issues, though Sen. Joe Manchin, D-W.Va., praised Senate Appropriations Financial Services for ensuring the FY 2020 funding bill would “offset some of the high cost” of deploying broadband in rural areas like his state that present buildout obstacles. He noted specific funding in the subcommittee's allocation to the Treasury Department for the Committee on Foreign Investment in the U.S.’ additional jurisdictional role in reviewing transactions by foreign entities in the U.S. to determine their effect on national security given enactment of the 2018 Foreign Investment Risk Review Modernization Act (see 1808130064).

Sen. Jerry Moran, R-Kan., is concerned the pending bill lacks funding to implement the Modernizing Government Technology Act. The measure, enacted via the FY 2018 National Defense Authorization Act (see 1711150028), would create a central IT modernization fund and individual funds for the Commerce Department and 23 other federal departments and agencies. “No agency ever seems to have the money to pay for updating their IT,” Moran said. Congress allocated funding to implement the law via the FY 2019 funding bill. “I understand the importance of reducing our national debt,” but government should continue to make IT modernization a priority, Moran said.