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FCC Gets $340 Million, Spared Net Neutrality Defunding in House FY2012 Omnibus

The House dropped a referendum on the FCC net neutrality order from its fiscal year 2012 appropriations bill. In a new appropriations omnibus bill introduced late Wednesday, the House also increased its proposal for funding the FCC to nearly $340 million. The package was apparently the result of negotiations between Democrats and Republicans. The House hopes to vote on the package Friday, an Appropriations Committee spokeswoman said. To prevent a government shutdown, Congress must pass an appropriations bill or continuing resolution (CR) by Friday when the current CR expires.

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The House’s original bill from this summer had barred the FCC from using appropriated funds to implement its net neutrality order. A House Appropriations Committee spokeswoman confirmed the language was removed but wouldn’t say why. The appropriations process had been seen as the last best shot for Congress to overturn the FCC net neutrality order that took effect Nov. 20. Last month, Senate Democrats turned down a House-passed attempt to undo the rule using the Congressional Review Act. The FCC order could still be overturned in court.

The $340 million proposed for the FCC is $14 million less than the commission’s request of $354 million. But it’s also $21 million more than the $319 million originally proposed by House Republicans. The FCC didn’t comment.

The new omnibus legislation keeps language related to the LightSquared network. Section 628 requires the FCC to resolve concerns that the network would interfere with GPS systems. Another section bars the FCC from limiting USF support to one line per household. The USF provision is included every year and does not affect the FCC’s recent USF reform order, telecom industry officials said.

"This final legislation is the outcome of tough negotiations and meaningful, bipartisan compromise,” said House Appropriations Committee Chairman Hal Rogers, R-Ky. “As is the case in any successful agreement, not everyone got everything they wanted. But, this is a good bill that strikes a reasonable balance between reduced spending, wise federal investments, and policy changes that American businesses need to thrive.”