(Washington, D.C.) -- Citizens Against Government Waste (CAGW) today named Senators Kay Bailey Hutchison (R-Texas) and Mary Landrieu (D-La.) it’s September Porkers of the Month for their amendment to S. 1585, the fiscal 2004 Commerce, Justice, State, and the Judiciary Appropriations Act, that would give away an estimated $100 million in spectrum rights to Northpoint Technology.  With a $480 billion deficit and the President ready to send an $87 billion supplemental spending bill to Congress, the last thing this country needs are two senators pandering to a special interest, violating established precedent for auctioning spectrum rights and squandering taxpayer dollars.

Senator Hutchison and Senator Landrieu, members of the Senate Appropriations Committee, inserted the Northpoint handout language into S. 1585.  The provision would simply give the spectrum rights in question to Northpoint Technology for free.  The company, which has a presence in Texas and New Hampshire, wants to provide wireless and satellite services, including Internet applications, multi-channel video and high speed data.  To cover all the bases in the Senate, Senators Landrieu and John Sununu (R-N.H.) inserted the Northpoint giveaway in H.R 1320, the Commercial Spectrum Enhancement Act of 2003 during a recent markup in the Senate Commerce, Science and Transportation Committee.

The Northpoint deal subverts the authority of the Federal Communications Commission (FCC) to issue spectrum licenses through a competitive bidding process, which Congress established in 1993 when two or more parties request the same spectrum.  In this instance, at least one other company, MDS America, is willing to bid for the spectrum at auction, which is scheduled for January 2004.  Instead of complying with this law, the company’s friends in Congress would take away $100 million from the taxpayers.

While the Northpoint earmark is not direct spending, it is equally offensive and costly as any other pork-barrel project added by members of the Appropriations Committee who abuse their authority at the expense of the taxpayers.  In addition to the $100 million expense, the Hutchison-Landrieu amendment is anticompetitive and sets a precedent that will encourage others to seek exemptions from the competitive bidding now required for spectrum allocation.

There is formidable opposition to the Northpoint handout.  Senate Commerce Committee Chairman John McCain (R-Ariz.) said, “I have very little doubt that this is a giveaway and an exception” and House Commerce Committee Chairman Billy Tauzin (R-La.) is equally outraged.  In addition, the Bush Administration strongly opposes Northpoint’s efforts, saying, “Such a provision would interfere with the efficient allocation of Federal spectrum licenses.”

For catering to special interest, undermining the spectrum allocation process, and giving away $100 million in taxpayer funds, CAGW names Sens. Kay Bailey Hutchison and Mary Landrieu September Porkers of the Month.

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.