The narrow targeting of Maryland’s so-called tax on digital ad revenue may suggest it’s primarily a punishment that federal courts are permitted to review under the U.S. Tax Injunction Act (TIA), 4th U.S. Circuit Court of Appeals Judge Julius Richardson said at oral argument Wednesday. The 4th Circuit is reviewing an appeal by the U.S. Chamber of Commerce of the March 2022 decision by the U.S. District Court in Baltimore to dismiss the Chamber’s challenge of the tax, plus the district court’s December dismissal of the Chamber’s challenge to the tax’s pass-through ban (case 22-2275). The 4th Circuit should remand all counts back to district court, argued the Chamber’s attorney Michael Kimberly of McDermott Will.

House Ways and Means Trade Subcommittee Chairman Adrian Smith, R-Neb., underscored the need to lower tariffs through the Generalized System of Preferences benefits program for American businesses during high inflation at a hearing on reforming GSP, and asked his colleagues to "move forward with open minds and the urge to get things done."

A coalition of financial trade groups raised concerns with the FCC about its proposed rules to give consumers the ability to revoke prior express consent through any reasonable means under the Telephone Consumer Protection Act (see 2308150071). Use only session initiation protocol codes 608 and 603+ for labeling blocked calls, the American Bankers Association, ACA International, American Financial Services Association, Credit Union National Association and National Association of Federally-Insured Credit Unions told an aide to Commissioner Brendan Carr, per an ex parte filing posted Tuesday in docket 17-97. The groups also warned that financial institutions and other companies may not be able to honor revocation requests within 24 hours because they may come from multiple channels rather than in a centralized manner. The groups expressed "strong support for actions to remove bad actors and illegal traffic from the network," saying it's "key that the legitimate, often critical, calls that our members place are completed."

Senate Appropriations Financial Services Subcommittee member Sen. Joe Manchin, D-W.Va., raised doubts during a Tuesday hearing on the FCC’s FY 2024 funding request (see 2309190001) about how much commission Chairwoman Jessica Rosenworcel prioritizes a push for fully funding the Secure and Trusted Communications Networks Reimbursement Program. Rosenworcel and others repeatedly prodded lawmakers this year to allocate an additional $3.08 billion to fully satisfy reimbursement costs for carriers beyond the initial $1.9 billion Congress originally allocated the program. Rosenworcel cited the commission’s statutory obligation to begin prorating those payments absent appropriations (see 2305040085). Still, the matter “must not be your highest priority” because “it’s not in your budget request,” Manchin told Rosenworcel Tuesday. Rosenworcel cited her past communications with lawmakers about rip and replace funding. “We have made it a priority and we’re working with the carriers that have it in their networks right now to identify a way forward” amid the shortfall, she said. Senate Appropriations Financial Services Chairman Chris Van Hollen, D-Md., noted Congress allocated the program’s $1.9 billion in the FY 2021 appropriations and COVID-19 aid omnibus package as a “one-time expenditure” (see 2012210055). Lawmakers also hope to include language in a spectrum legislative package from the House Commerce Committee-approved Spectrum Auction Reauthorization Act (HR-3565) that would give the FCC the rip and replace money up front and use some future auction revenue to cover the loan (see 2305240069), Van Hollen said.

Telecom-focused congressional leaders are voicing interest in including a temporary restoration of the FCC’s auction authority in a continuing resolution to extend federal appropriations past the end of FY 2023 Sept. 30. Lobbyists and observers told us they remain doubtful about Capitol Hill’s appetite for such a move due to the factors that hindered talks on a broader spectrum legislative package (see 2308070001). Senate Appropriations Financial Services Subcommittee members sounded alarms about the remit’s lapse during a Tuesday hearing on the FCC’s FY 2024 funding request. House Communications Subcommittee member Rep. August Pfluger, R-Texas, also raised concerns during a Punchbowl News event the same day.

Nexstar and DirecTV signed a deal on retransmission rights for 176 Nexstar stations, ending a 76-day blackout for those stations but leaving behind an open FCC complaint, an ongoing antirust court battle and a continuing blackout for 27 other stations owned by Mission Broadcasting and White Knight Broadcasting but operated by Nexstar through shared service agreements. DirecTV and Nexstar announced “a comprehensive new multi-year distribution agreement” in a joint release Monday, a day after announcing the return of Nexstar’s programming to DirecTV, DirecTV Stream and U-Verse. Terms of the agreements weren't disclosed.

A former Senate Finance Committee chairman when Republicans were in the majority, a pro-trade Democrat on the House Ways and Means Committee, and that committee's trade subcommittee leaders all agree -- if a returned President Donald Trump imposed a global 10% tariff by executive order, Congress likely would step in to undo it.

The U.S. filed a motion to remand an Enforce and Protect Act case in light of the U.S. Court of Appeals for the Federal Circuit's ruling in Royal Brush Manufacturing v. United States, in which the appellate court said CBP violated an EAPA party's due process rights by not granting them access to business confidential information. Filing the Sept. 14 motion in a Court of International Trade case filed by importer Newtrend USA Co., the government claimed that a limited remand is needed because the opinion concerns "the treatment of confidential information" (Newtrend USA Co. v. United States, CIT # 22-00347).

California legislators voted to require wireless eligibility for state broadband funds on the last day of their session Thursday. Wireless is a “reliable substitute … when it’s impossible to use fiber,” said Assembly Communications Committee Vice Chair Jim Patterson (R) in an interview Friday. The Utility Reform Network (TURN) prefers fiber and remains opposed.

Eight former FTC and DOJ antitrust enforcers from Democratic and Republican administrations asked the 9th U.S. Circuit Court of Appeals to affirm the district court's denial of the FTC's motion for a preliminary injunction on Microsoft’s Activision Blizzard buy (see 2307110031). Their brief was one of seven amici briefs filed Wednesday (docket 23-15992), all in opposition to the FTC's merger challenge on appeal.