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R48559 — Proposed Spectrum Provisions in the House Reconciliation Bill (H.R. 1)

Reports · published 2025-06-04 · v1 · Active · crsreports.congress.gov ↗

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Authors
Jill C. Gallagher
Report id
R48559
Summary

On May 22, 2025, the House voted to approve H.R. 1, a reconciliation bill that compiled provisions from 11 House committees, pursuant to directives in H.Con.Res. 14. The Committee on Energy and Commerce (“the Committee”) was instructed to submit changes in laws within its jurisdiction to reduce the deficit by not less than $880 billion for the period from fiscal year (FY) 2025 through FY2034. As part of its package, the Committee submitted provisions requiring the identification and auction of spectrum—the radio waves that enable wireless communication. The provisions would restore the Federal Communications Commission’s (FCC’s) general auction authority, which expired on March 9, 2023, extending it through September 30, 2034; direct the Assistant Secretary of Commerce for Communications and Information, who leads the National Telecommunications and Information Administration (NTIA), and the FCC to identify within two years of enactment 600 megahertz of spectrum between 1.3 gigahertz (GHz) and 10 GHz—excluding the 3.1-3.45 GHz band and 6 GHz band—and make it available for exclusive, licensed use for mobile broadband services, fixed broadband services, mobile and fixed broadband services, or a combination thereof; and direct the FCC to auction 200 of the 600 megahertz of the identified spectrum within three years of enactment, and the remaining spectrum within six years of enactment. The Congressional Budget Office estimates the spectrum auctions would generate $88 billion between FY2025 and FY2034. Proponents of H.R. 1 assert that it achieves several goals: It reinstates the FCC’s lapsed auction authority; makes additional spectrum available for commercial use; excludes a particularly contested band—the 3.1-3.45 GHz band (also called the lower 3 GHz band)—from reallocation and auction; and generates offsetting receipts. Some Members have raised concerns about the spectrum provisions, the amount of spectrum to be reallocated for exclusive commercial use, the potential impact on federal agencies and systems, and the extent of coordination with federal agencies when reallocating spectrum to ensure federal systems and capabilities are protected, especially those used for national defense. These Members assert that spectrum use is increasing for commercial and federal users, including for DOD, and that future federal spectrum needs should be considered. Members express concerns about future plans for the lower 3 GHz band, a band used heavily for DOD radar systems and excluded from auction in H.R. 1. They urge greater coordination among agencies on spectrum decisions to both increase access to spectrum and advance and protect U.S. capabilities. Some Members have pressed for future auction proceeds to be allocated for public interest programs, such as improvements to 911 systems and investments in spectrum sharing research that could maximize spectrum use. In H.R. 1, proceeds would be used for FCC costs of developing and conducting the auction and for federal agency relocation and sharing costs associated with the auction(s). Remaining funds would be deposited in the U.S. Treasury, and would be available for deficit reduction, unless otherwise specified by Congress. H.R. 1 has passed the House. The Senate may adopt or amend the language in H.R. 1. The Senate could increase the amount of spectrum for reallocation, expand the range of spectrum that can be considered, or remove certain bands that have been exempted; this could enable NTIA and the FCC to reach the spectrum goals in H.R. 1, and potentially generate additional proceeds, but could have impacts on incumbent users, including federal agencies, using these spectrum bands. The Senate could decrease the amount of spectrum to be reallocated or it could exempt additional bands from reallocation. Doing so could maintain federal use of certain bands, but it may not support existing and future needs of commercial service providers and their customers. It may also affect innovation, economic gains, and U.S. leadership in wireless communications; and it could limit proceeds from auctions foregone.

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