Senate Commerce Sets Wednesday Spectrum and National Security Act Markup

Senate Commerce’s executive session will begin at 10 a.m. in 253 Russell. Also on the docket: the Rural Broadband Protection Act (S-275), Network Equipment Transparency Act (S-690), Protecting Kids on Social Media Act (S-1291), Create AI Act (S-2714) and Future of AI Innovation Act (S-4178).

The Spectrum and National Security Act draws on major parts of a Cantwell proposal that the Congressional Budget Office evaluated earlier this year (see 2403140066). The draft sets spending priorities for up to $20.6 billion drawn from future spectrum auction revenue, including $2.3 billion that would go to the U.S. Treasury for debt reduction. The only spectrum auction the measure outright mandates is the sale of licenses on the 12.7-13.25 GHz band before the end of 2027. Cantwell’s proposal directs NTIA to lead feasibility assessments of some other frequencies, including opening up federal-controlled spectrum on the 7 and 8 GHz bands for potential licensed or shared use. It also seeks a study of the 37 GHz band.

The Cantwell draft proposes Congress lend the FCC about $8.1 billion, including up to $5 billion for ACP and $3.08 billion to fully fund the Secure and Trusted Communications Networks Reimbursement Program. The bill lets the FCC borrow the money within 90 days of enactment. The commission would pay back the loan using future spectrum auction revenue. The ACP Extension Act (HR-6929/S-3565) proposes $7 billion in stopgap funding for the connectivity program, while President Joe Biden called for $6 billion as part of an October domestic supplemental appropriations request (see 2310250075).

There are other legislative options for keeping ACP running beyond its expected funding exhaustion in May, but their viability remains in question, lobbyists told us. HR-6929 lead sponsor Rep. Yvette Clarke, D-N.Y., as of Thursday had not formally begun seeking signatures on a discharge petition aimed at forcing a House floor vote on the measure (H.Res. 1119) even though that proposal passed a seven-legislative-day waiting period last week (see 2404170066), an aide confirmed to us. Clarke was “still having conversations” with potential petition signers on both sides of the aisle as of Thursday afternoon, the aide said.

None of HR-6929’s 22 Republican backers has committed to sign the discharge petition thus far, reluctant to buck House GOP leaders’ opposition to moving the stopgap money amid intraparty rancor on foreign aid and other matters, lobbyists said. ACP backers still see an opening for attaching stopgap funding to other legislative vehicles but acknowledge a spectrum legislative package would provide a clear monetary offset for the money.

Other proposed outlays in the Cantwell draft include a loan of up to $3.3 billion for National Science Foundation research, $3 billion in additional U.S. semiconductor manufacturing incentives created via the 2020 Creating Helpful Incentives to Produce Semiconductors for America Act, $2 billion for next-generation 911 tech upgrades and $25 million to fund DOD analysis and planning “to improve efficiency and effectiveness” of its spectrum use.

Cantwell’s proposal eyes improved federal interagency airwaves policy coordination and codifying elements of the Biden administration’s November national spectrum strategy (see 2311130048). It would create a dispute resolution process when NTIA and another federal agency “are unable to reach consensus on” a federal spectrum policy issue. The White House’s national security and economic policy advisors would be the ultimate arbiters. The measure would elevate the NTIA administrator to an undersecretary role from the current deputy assistant secretary level. It proposes reassessing the existing FCC-NTIA spectrum memorandum of understanding every four years.

Senate Commerce’s plan to mark up the Spectrum and National Security Act next week reflects Cantwell’s intention of moving quickly to advance the bill, lobbyists said. The measure is likely to get unanimous backing from committee Democrats, but as of Thursday no Republicans supported the proposal, lobbyists said. Indeed, Senate Commerce ranking member Ted Cruz, R-Texas, was very likely to oppose the measure, lobbyists said. Cruz’s 2024 Spectrum Pipeline Act (S-3909) would require NTIA to identify at least 2,500 MHz of midband spectrum the federal government can reallocate for nonfederal or shared use within the next five years (see 2403110066).

CTIA raised concerns Thursday about the Spectrum and National Security Act. “While renewing FCC spectrum auction authority is critical, we are concerned” the bill “focuses too much on the complex topic of dynamic spectrum sharing and omits a pipeline of much-needed mid-band spectrum,” said President Meredith Baker. The proposal “also steps back from key aspects of the” Biden spectrum strategy, including “revisiting” 5G use of the 3.1-3.45 GHz band. DOD released a redacted version of its Emerging Mid-Band Radar Spectrum Sharing Feasibility Assessment earlier this month to emphasize its opposition to commercial use of the lower 3 GHz band (see 2404030052).

Other groups offered more positive feedback. Cantwell’s proposal “advances a clear strategy to maintain our global competitiveness, standing up for innovative technologies like Wi-Fi while protecting federal missions that rely on spectrum,” WiFiForward said. “The Spectrum and National Security Act takes a technology-neutral approach to design band utilization plans that best advance U.S. needs.” It’s a “forward-looking proposal that can deliver mid-band spectrum to meet America’s future needs without sacrificing national security,” said Spectrum for the Future. Competitive Carriers Association CEO Tim Donovan praised Cantwell for addressing ACP and rip-and-replace funding in the proposal.