House Reconciliation Package Restores Spectrum Auction Authority

Citizens Against Government Waste (CAGW) has supported spectrum auction authority for the Federal Communications Commission (FCC) for many years.  H.R. 1, the One Big Beautiful Bill Act (reconciliation) passed by the House of Representatives restores this authority through fiscal year (FY) 2034, more than two years after it expired on March 9, 2023.  The renewal of the auctions is estimated to generate approximately $88 billion in revenue to help offset expenditures in the legislation.

The House bill creates a midband spectrum pipeline of 600 MHz to further expand 5G communications capabilities across the country.  The bands the bill designates as available for auction include frequencies between 1.3 gigahertz (GHz) and 10 GHz, except the 3.1-3.45 GHz band and between 5.925 GHz and 7.125 GHz.  The FCC will not only need to determine when and how to auction that spectrum but also coordinate with the National Telecommunications and Information Administration (NTIA) to identify spectrum government agencies are not using optimally, which can be determined with new technologies and methodologies.  This would allow agencies to return unused spectrum back to the FCC for auction.

Included in the frequencies available for NTIA and the FCC to review is the Citizens Band Radio Service (CBRS), which is from 3.55 to 3.7 GHz.  However, this band was auctioned for shared use by the FCC in 2021 and netted $4.54 billion to the Treasury.  According to a November 2024 NTIA analysis, CBRS usage has grown substantially.  If the current incumbents of the band are forced to give up the spectrum that they paid for in the auctions and relocate so that the spectrum can be re-bid in a new auction, the government will need to reimburse them for all costs associated with losing their access to this spectrum, like relocation costs, upgrading equipment to work within the new band, and relocating their existing customers.  That would reduce the anticipated $88 billion in auction revenue.  As the Senate begins consideration of the reconciliation bill, it should consider adding this band to the exemptions from the auction authority.

While reauthorizing the FCC’s spectrum auction authority is an important step toward ensuring a steady stream of spectrum for the future, lawmakers and federal agencies must ensure that spectrum continues to be balanced among licensed, unlicensed, and shared use, and ensure that incumbents that are relocated receive adequate compensation.