You Can't Spell Reconciliation Without S-P-E-C-T-R-U-M

 You’re reading the Benton Institute for Broadband & Society’s Weekly Digest, a recap of the biggest (or most overlooked) broadband stories of the week. The digest is delivered via e-mail each Friday.

Round-Up for the Week of May 12-16, 2025

The House Commerce Committee convened on May 13 to conduct a full markup of the committee's legislative recommendations for U.S. federal government budget reconciliation. In April, the Senate developed a resolution to establish the federal budget for fiscal year 2025 and set budgetary standards for 2026-2034. The resolution passed, and the House Commerce Committee was tasked with reducing the federal deficit by no less than $880 billion by 2034. This week's markup covered a wide array of programs and funding mechanisms. Amid protests and arguments about Medicare, the Committee advanced a bill––by a 29-24 vote––that would reenable the Federal Communications Commission (FCC) to conduct spectrum auctions, bring more artificial intelligence to the federal government, and prevent AI regulation by states and local governments.

FCC's Spectrum Auction Authority

The budget reconciliation bill's communications title would reauthorize the FCC spectrum auction authority through September 2034. The legislation would require the FCC, in partnership with the National Telecommunications and Information Administration (NTIA), to free up and auction by 2034 at least 600 megahertz (MHz) of commercial or federal spectrum in the covered band to be auctioned by 2034  the band of frequencies between 1.3 gigahertz (GHz) and 10 GHz, inclusive, excluding the band of frequencies between 3.1 GHz and 3.45 GHz and the band of frequencies between 5.925 GHz and 7.125 GHz. 

Within three years of enactment of the law (assuming that happens), the FCC would auction at least 200 MHz of the identified spectrum. The FCC would complete auctions for the remaining spectrum after six years.

Auctions of this spectrum would result in exclusive, licensed use for mobile broadband services, fixed broadband services, mobile and fixed broadband services, or a combination thereof.

As is some previous auctions, the FCC will not conclude these auctions if the total cash proceeds are less than 110 percent of the total estimated relocation or sharing costs.

According to Commerce Committee Chairman Brett Guthrie (R-KY), the sale of this spectrum could raise $88 billion by 2034. This funding would go to the U.S. Treasury. 

House Democrats sought to divert auction proceeds to public programs via bill amendments, but their efforts were unsuccessful. These amendments included proposed investments in emergency communications infrastructure (911 and first responder networks), cybersecurity, and broadband deployment. Specifically, the Committee rejected—in a party line vote—an amendment proposed by Rep Yvette D. Clark (D-NY) that would have set aside funding for the FCC's Affordable Connectivity Program, which expired in May of last year.

“Funding to make broadband affordable is needed now, perhaps more than ever,” said Rep. Clarke. “[Auction] proceeds should be reinvested for the public good and not used exclusively to pay for tax cuts for [Republicans’] billionaire friends.”

House Democrats also expressed concerns over the vulnerability of Citizens Broadband Radio Service (CBRS), which allows shared access to the 3.5 GHz frequency band (3550 MHz to 3700 MHz) for commercial deployment of private cellular 4G and 5G networks. CBRS was not excluded from the spectrum provision like the lower 3 GigaHertz (GHz) band––used by the U.S. military–– and the unlicensed 6 GHz Wi-Fi band were.

"Jamming a bill through that could kick all current users off the CBRS band when we have had only 36 hours to review the bill's text, and only one spectrum hearing this Congress, is reckless and risks causing real harm," said Rep Doris Matsui (D-CA) at the hearing.

Artificial Intelligence Gets Free Rein

The artificial intelligence portion of the bill would have sweeping ramifications for federal, state, and local governments. The Committee appropriated $500 million to the Department of Commerce for fiscal year 2025––with these funds remaining available through September 30, 2035––for the purpose of modernizing and securing federal information technology (IT) systems through the deployment of commercial artificial intelligence, automation technologies, and the replacement of antiquated business systems.

The legislation specifies the use of commercially available artificial intelligence––which would greatly benefit companies like OpenAI––in federal IT systems. The bill text directs the Department of Commerce to use these funds to support:

• The replacement and modernization of legacy business systems with state-of-the-art commercial artificial intelligence systems and automated decision systems;
• The adoption of artificial intelligence models that increase operational efficiency and service delivery; and
• The improvement of the cybersecurity posture of Federal information technology systems through modernized architecture, automated threat detection, and integrated artificial intelligence solutions.

Should the budget reconciliation be signed into law, it would also prevent state and local governments from enforcing any laws or regulations relating to artificial intelligence models, artificial intelligence systems, or automated decision systems for ten years.

Artificial intelligence usage has boomed in recent years, especially with generative AI models like OpenAI's ChatGPT. These applications pose both opportunities and risks as the technology rapidly develops; if the states are unable to set state-level policies on AI usage, they may be unable to integrate AI into digital equity programs tailored to their communities. They may also be unable to prevent their residents from the exploitation of their data and the exacerbation of the digital divide. Either way, the states would be unable to act on AI.

What's Next

The Commerce Committee's work on the reconciliation bill is done for now, but there are major hurdles ahead to get the legislation through Congress. 

As readers may know, Republican leaders are pushing the legislation through Congress using a powerful tool that allows them to enact the measure without a single Democratic vote. Budget reconciliation allows measures that affect government revenues to pass the Senate on a simple majority vote, avoiding a filibuster. It’s not a given that Republicans will be able to accomplish that, as they have razor-thin margins in both chambers and many divisions in their ranks over the plan.

House Speaker Mike Johnson (R-LA) is scrambling to win over holdouts in his party and pass a bill before Memorial Day weekend. Republicans are divided. Fiscal conservatives argue the legislation doesn’t cut enough government spending, while moderates say it slashes too much from Medicaid and could hurt working-class Americans. As it stands as we go to press, the bill does not have enough support to pass the House, which is narrowly controlled by Republicans.

Even if the bill does pass in the House, at least one Republican senator doubts it can make it through the Senate. Sen. Ron Johnson (R-WI) said this week that he thinks House Republicans’ reconciliation bill is “going down.” And he’s working to ensure its demise.

“The ‘big, beautiful bill,’ I think that’s the Titanic,” he said, arguing it doesn’t do enough to reduce spending. “I think that’s going down because I think I have enough colleagues in the Senate that this has resonated with, that say, ‘yeah, we have to return to a reasonable pre-pandemic spending.’”

Stay tuned.

Quick Bits

• Trump called a high-speed internet program a handout ‘based on race’ and ‘illegal.’ That’s False.
• Digital Inclusion Leaders Brace for Impact
• The Ripple Effects of Canceling the Digital Equity Act
• States Weighing Response to Trump's Cancellation of Digital Equity Funding

Weekend Reads

• US Broadband Study: Weak Pricing Power Below 1 Gbps, Big Premiums at the Top
• Mapping the Divide
• FCC Grants Connect America Fund Support Reduction Waivers
• GLAAD's Social Media Safety Index Unveils How Tech Companies Intentionally Rolled Back Safety Policies for LGBTQ People

ICYMI from Benton

• Illinois Ports Fear BEAD Slowdown
• The Digital Equity Act: What It Is and Why We Need It
• Achieving Digital Equity is a Matter of Social and Economic Justice and is Worth Pursuing
• The Joint Center Looks at How the Law that Created the Internet Impacts Black Communities

Upcoming Events

May 19––The DOJ v. Google Ad Tech Decision: Did the Court Get It Right? (Information Technology & Innovation Foundation)

May 21––Oversight of the Federal Communications Commission (House Appropriations Committee)

May 21––AI Regulation and the Future of US Leadership (House Commerce Committee)

Jun 1––Fiber Connect 2025 (Fiber Broadband Association)

Jun 11––Should Policymakers Regulate Human-AI Relationships? (Information Technology & Innovation Foundation)

Jun 19––National Juneteenth Digital Opportunity Bible Study (Black Churches 4 Digital Equity Coalition)

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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