House Forwards Attack on FCC Net Neutrality, Saves RUS Broadband Loans
A House panel approved a fiscal-year 2012 appropriations bill banning the FCC from using government funds to carry out the agency’s December net neutrality order, and trimming the commission’s budget to $319 million, down $17 million. Earlier Thursday, the House saved the Rural Utilities Service broadband loans program from the chopping block by voting for a surprise amendment to the FY 2012 agriculture appropriations bill by Reps. Chris Gibson, R-N.Y., and Bill Owens, D-N.Y.
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The appropriations bill governing the FCC was cleared by voice vote in a markup by the House Appropriations Subcommittee on Financial Services and General Government. Chairwoman Jo Ann Emerson, R-Mo., said the FCC order imposed “burdensome regulations on the Internet.” In addition to the net neutrality ban and FCC budget reduction, the appropriations bill also removes rules in the FCC’s Code of Federal Regulations related to the Fairness Doctrine. FCC Chairman Julius Genachowski has supported deleting those provisions (CD June 9 p14).
The Appropriations Committee plans to vote June 23 on the General Government bill, it has said. Emerson and Ranking Member Jose Serrano, D-N.Y., said they expect a much livelier debate in the full committee than was seen at the 15-minute subcommittee session. “I think there will be some FCC issues [raised], absolutely,” Serrano told reporters afterward. The FCC said Wednesday that it would work with appropriators in the House and Senate to ensure it receives adequate funding (CD June 16 p16).
The attack on the net neutrality order upset Democrats on the House Communications Subcommittee. Ranking Member Anna Eshoo, D-Calif., “has been a champion of open Internet rules, and will continue to fight to preserve the FCC’s rules,” her office said. Rep. Mike Doyle, D-Pa., urged other House members to reject the ban: “I am disappointed that some of my colleagues have chosen to continue their efforts to strip away protections for an open Internet by sneaking anti-consumer language into a spending bill."
Before the markup, the House voted 221-198 in support of an amendment by GOP freshman Gibson to provide $6 million for the RUS broadband loans program under the FY 2012 agriculture appropriations bill. The base agriculture bill would have zeroed out the loans program, which had $22.3 million in FY 2011. The House then voted 217-203 to send the full appropriations measure to the Senate.
Cutting the broadband loans “is a mistake,” Gibson said on the House floor Wednesday night. “I know that there have been issues with this program in the past,” but the administration recently has made progress fixing them, he said. Providing RUS with $6 million would support more than $100 million in loans, Gibson said. The amendment’s cost is completely offset by cutting $6 million for government office rental space, he said.
Broadband providers applauded the save. “While we recognize the difficulties created by the reduced spending levels in the legislation, we appreciate the House’s recognition of the importance of broadband deployment represented by the funding supplied by the Gibson amendment,” a USTelecom spokeswoman said. The National Telecommunications Cooperative Association’s “staff worked tirelessly with members of the House to ensure that they understood the negative impact of losing the RUS Broadband Loan Program,” NTCA CEO Shirley Bloomfield said. “To support this administration’s goals on broadband, rural companies need to be able to utilize this program. Rural telcos have proven themselves good stewards of these funds and have demonstrated exceptional good management in building valuable networks throughout the most difficult-to-serve areas of our country.”