Guthrie: No 'Final Decision' on Spectrum Pipeline in Reconciliation as House Markup Delayed
House Commerce Committee Chairman Brett Guthrie, R-Ky., and Senate Commerce Committee Chairman Ted Cruz, R-Texas, told us in recent days that negotiations on potential compromise spectrum legislative language for a budget reconciliation package remain in flux. They emphasized it's still uncertain there will be a deal to obligate an airwaves pipeline as part of the measure. Their comments contrasted with the optimism that Senate Armed Services Committee Chairman Roger Wicker, R-Miss., voiced in recent interviews about the prospects of a spectrum deal that would satisfy pro-DOD legislators, who have resisted reallocating military-controlled midband airwaves.
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“We’re having discussions right now” about whether to include pipeline language in a spectrum reconciliation title “or if it’s going to be a straight reauthorization” of the FCC’s lapsed auction authority, Guthrie told us before the House recessed Thursday for the weekend. Guthrie got a temporary reprieve Thursday night from what had been a rapidly diminishing timeline to reach a deal, as House leaders allowed Commerce to push an intended Wednesday markup of its portion of the reconciliation package to the week of May 12.
Guthrie said that there “hasn’t been a final decision, [and] I don’t know that” talks have moved the pipeline debate in favor of a DOD proposal to make 420 MHz of military-controlled bandwidth available for FCC auction while maintaining its grip on the 3.1-3.45 GHz band (see 2504040068). “We're all going to work together” on a deal, he said. “My background is military. I want to make sure … the military is protected.” House Communications Subcommittee Chairman Richard Hudson, R-N.C., likewise emphasized that “we’re certainly taking into account [the needs of DOD] to do the things that will” maintain national security.
Cruz remained circumspect, telling us that “conversations are ongoing” about a spectrum deal. But during Senate Commerce’s confirmation hearing Thursday for deputy commerce secretary nominee Paul Dabbar, Cruz continued to highlight his 2024 Spectrum Pipeline Act as his preference for the reconciliation title (see 2505010036). DOD backers previously criticized Cruz's proposal, which would mandate that NTIA identify at least 2,500 MHz of midband spectrum to reallocate within the next five years (see 2501290057).
“I think we're almost there,” Wicker told us. “I believe we're getting to a good place that provides some economic space but also protects national security.” Senate Armed Services Committee member Mike Rounds, R-S.D., clarified that he hasn’t been directly involved in recent spectrum negotiations but said he and other panel members have urged moving toward DOD’s proposal. It allows “for some movement" toward wireless carriers’ spectrum needs, but it "still protects those critical assets that we were concerned about,” primarily the lower 3 GHz band, Rounds said.
Cantwell: DOD Backers 'Capitulated'
Senate Commerce ranking member Maria Cantwell, D-Wash., told us she hasn’t seen language, but it appears “the people who wanted to protect DOD and [national security interests] have, all of the sudden, capitulated to the telecom sector.” Cantwell said those Republicans “are throwing those national security interests over the side” in favor of auction revenue that they want included in reconciliation to offset 2017 tax cuts and other GOP priorities. Congress’ budget resolution (H. Con. Res. 14), which will provide a blueprint for the reconciliation package, mandates that House Commerce find at least $880 billion in offsets in its areas of jurisdiction.
Guthrie and former House Communications Chairman Bob Latta, R-Ohio, acknowledged that the Congressional Budget Office recently increased its 10-year score for renewing the FCC’s lapsed auction authority. Several lobbyists said the CBO’s auction-mandate-only score increased to $80 billion-$90 billion, up from $65 billion-$70 billion earlier this year (see 2502180058). “We think the score should be much higher” than even CBO’s new estimate, given that the office has a record of undervaluing past auctions, Latta said. Two communications sector lobbyists told us CBO’s increased auction-mandate-only score could make it more attractive for House and Senate Commerce leaders to drop the pipeline push because the valuation of sales of specific bands isn’t very high.
House Communications ranking member Doris Matsui of California told us she and other Democrats are already talking about how they will combat a spectrum title in House Commerce’s reconciliation measure, although she said the greater emphasis will be on pushing back against likely Medicaid cuts. Democrats’ spectrum focus will be on highlighting telecom priorities that they want spectrum sales revenue to fund, including money to revive the FCC’s lapsed affordable connectivity program, Matsui said.
NCTA raised objections Thursday to DOD’s proposal, citing its plan to move radar systems currently on the 3550-3650 MHz citizens broadband radio service band onto the lower 3 GHz band. Any proposal “claiming to protect some government spectrum bands by helping Big Mobile kill off wireless competition is a bad deal for American consumers,” NCTA said in a statement. “As we develop spectrum policies that protect national security and support wireless growth, we must reject false ‘solutions’ that cave to unreasonable carrier demands at the expense of fair, competitive access essential to millions of consumers and businesses.”