Last week, Congress passed both the National Defense Authorization Act (NDAA) and the American Relief Act, a continuing resolution (CR) to fund the federal government through March 14, 2025. Both bills faced a bumpy path to the President's desk, foreshadowing potential challenges to the congressional work that must get done next year.
Working late into the evening, Congress voted to pass the CR without many of the telecommunications and tech provisions that had been included in an earlier draft. Those omitted provisions include the NTIA Reauthorization Act, which has not seen a renewal since 1992; a bipartisan bill to criminalize the publication of nonconsensual deepfake pornography and intimate images; a bill targeting foreign adversaries like China and Russia that would require the Federal Communications Commission (FCC) to publish an annual list of entities with substantial foreign ownership that hold FCC licenses; and a bill targeted at increasing transparency and vetting requirements for internet service providers applying for the FCC's High Cost program. Other telecommunications, tech, and space provisions were also included in the initial draft, but House leadership ultimately removed policy riders in favor of a cleaner bill. The initial inclusion of these bills, however, may signal a better chance of many of them moving in the next Congress.
Additionally, the NDAA included a provision to allow the FCC to auction spectrum licenses in the AWS-3 band to cover a $3 billion shortfall in the agency's Rip and Replace program. The FCC's general spectrum auction authority lapsed in March 2023, and legislative efforts to renew it have faced significant challenges – but spectrum auction proceeds are seen as a potential pay-for next year, when Congress considers tax provisions expiring in 2025. With new committee leadership in both the House and Senate, discussions to reauthorize the FCC's spectrum auction authority will continue next year, likely as part of the budget reconciliation process. Past legislative efforts to renew the FCC's auction authority were unsuccessful due in part to other policy provisions being tacked onto the bill, making it more difficult to pass. However, under the budget reconciliation process, only a simple majority is required for passage, meaning if spectrum language fits into the perimeters of what can be included under the budget reconciliation rules, bipartisan support may not be needed to pass a bill.
2025 will bring early legislative action impacting communications policy across the U.S. economy and the globe. Budget reconciliation will be first up in January. The NDAA process happens annually and begins early in the year with the goal of moving bills through both the House and Senate Armed Services committees before the summer. It's important to strategize early about how to approach legislative concerns and meet with policymakers to advocate for policy priorities.
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