FY25 NDAA Deal Includes Rip-and-Replace Funding, FCC AWS-3 Licenses Reauction
The House and Senate Armed Services committees released a compromise version of the FY 2025 National Defense Authorization Act (HR-5009) Saturday night with language allocating $3.08 billion to fully fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program, as expected. The measure also provides up to $500 million through 2033 to the Commerce Department for regional tech hubs. The language in HR-5009, originating from the Spectrum and Secure Technology and Innovation Act (S-4207), would give the FCC $3.08 billion in Treasury Department borrowing authority for rip and replace reimbursements.
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HR-5009 would offset the rip-and-replace funding by authorizing the FCC to reauction the 197 AWS-3 licenses that Dish and affiliated designated entities returned to the commission last year. Sen. Steve Daines, R-Mont., first proposed using AWS-3 reauction proceeds for rip and replace in January. HR-5009 would give Commerce an initial $220 million in Treasury borrowing authority for regional tech hubs, with up to an additional $280 million depending on the total proceeds from the AWS-3 reauction. Any additional revenue would go toward deficit reduction.
Senate Commerce Committee Chair Maria Cantwell, D-Wash., claimed credit Saturday for the funding deal. “Protecting both our infrastructure from foreign threats and maintaining our economic and military competitiveness is critical,” she said in a statement. “Agreeing to keep U.S. innovation a high priority by investing in both Rip and Replace and Tech Hubs helps us do just that.” Cantwell had previously proposed the money as part of her S-4207, which stalled amid fraught negotiations.
Competitive Carriers Association CEO Tim Donovan, a vocal rip-and-replace funding advocate, praised the deal. “This funding is desperately needed to fulfill the mandate to remove and replace covered equipment and services while maintaining connectivity for tens of millions of Americans,” he said in a statement. “CCA supports and urges Congress to swiftly pass this important legislation and send it to” President Joe Biden for enactment.