Senate Commerce Committee ranking member Ted Cruz, R-Texas, is warning NTIA that Congress will “review the BEAD program early next year,” when Republicans will control both chambers, and plan to pay “specific attention to” program requirements that have drawn GOP ire. Congressional Republicans are likely to at least pursue a revamp of BEAD to rein in what they view as NTIA’s flawed implementation of the $42.5 billion initiative, while a clawback of program funds is less likely (see 2410210043). Drew Garner, Benton Institute for Broadband & Society director-policy engagement, pushed back Friday against criticisms Cruz separately leveled at NTIA's notice of funding opportunity (NOFO) for its $1.25 billion digital equity competitive grant program (see 2411210041).
Senate Commerce Committee ranking member Ted Cruz, R-Texas, urged NTIA Administrator Alan Davidson Thursday to “withdraw” a notice of funding opportunity (NOFO) for its $1.25 billion digital equity competitive grant program (see 2408300003) “and halt issuing Program grants before you cause real harm.” The initiative is among the broadband programs funded via the 2021 Infrastructure Investment and Jobs Act. “NTIA’s use of racial classifications, as set forth in the [digital equity competitive grant program] NOFO, does not serve a compelling governmental interest,” Cruz said in a letter to Davidson. He contends that language requiring grant applicants to prioritize “Covered Populations” violates the Fifth Amendment's due process clause because the agency doesn’t provide evidence of racial discrimination in internet access and lacks clear metrics. “The NOFO provides no evidence racial minorities face discrimination in accessing the internet, let alone specific instances of discrimination that NTIA is seeking to address,” Cruz said: It also “does not define 'minority,' making it impossible to determine whether it is underinclusive, but in any event, it is overinclusive because it includes anyone who falls into some racial group, without any determination that that specific group has faced discrimination in access to broadband.” Cruz wants NTIA to respond by Dec. 12 indicating it’s going to withdraw the language or justify its constitutionality. NTIA didn’t immediately comment. Cruz has been critical of NTIA’s implementation of other IIJA connectivity initiatives, including the $42.5 billion BEAD program (see 2410210043).
A Texas appeals court found "reversible error" in a lower court ruling in cities' challenge of the state's small-cells rules (see 2301270028). The trial court ruling siding with the state was reversed in part and the remainder of the ruling was remanded to the trial court. In Justice Edward Smith's opinion Friday in 03-22-00524-CV, he said the state "identifies no case" in which consideration of 10% of fair market value "was deemed adequate," and the cities "identify none in which that amount was held to result in a gratuity."
Charter Communications supported a USTelecom petition asking the California Public Utilities Commission to reconsider rules for implementing the state’s BEAD initial plan volume 2. However, consumer groups urged the CPUC to deny the application in a separate response Friday. USTelecom had raised concerns that state rules, including on required low-price plans, could discourage participation in the broadband grant program (see 2411010053). Charter agrees that the CPUC’s September order “contains legal errors,” including that “rate caps constitute impermissible rate regulation,” the cabler responded Friday in docket R.23-02-016. Also, Congress and the NTIA never asked for or required the CPUC’s proposed middle-class affordable service option, said Charter. And the CPUC may not require companies to participate in federal or state Lifeline programs, it said. The Utility Reform Network (TURN) and Center for Accessible Technology disagreed in a joint response the same day. USTelecom’s rehearing application “makes only narrow claims that the Commission errs by requiring participation in the state and federal Lifeline programs, which it does not, and also claims that the Commission errs by adopting affordability plans that create improper rate regulation, which is inaccurate and previously rejected by the Commission.” TURN and CforAT added, “Far from committing legal error, the Commission’s affordability programs and measures … represent a necessary and important step in the process of implementing a landmark opportunity to invest $1.86 billion in federal funding” for broadband.
The following are short summaries of recent CBP NY rulings issued by the agency's National Commodity Specialist Division in New York:
ANAHEIM, Calif. -- The NARUC Telecom Committee on Monday cleared draft resolutions on phone number conservation, the Universal Service Fund and utility coordination on broadband deployment. A USF panel that day described how reform could happen with Republicans controlling the FCC and Congress next year. Also, the affordable connectivity program (ACP) could return in 2025 despite Washington’s partisan climate, said Sanford Williams, deputy chief of staff for FCC Chairwoman Jessica Rosenworcel, during a collocated National Association of State Utility Consumer Advocates (NASUCA) meeting. State utility regulators are holding their annual meeting here this week.
SpaceX CEO Elon Musk could be a big beneficiary of Donald Trump's election, with some seeing his SpaceX reaping rewards from changes to NTIA's broadband equity, access and deployment (BEAD) program and the next FCC offering a warmer reception to SpaceX requests. Yet government ethics experts believe Musk and his businesses could face a particularly big challenge if he becomes leader of a government efficiency effort, as Trump promised during the campaign. "He's like a walking potential conflict of interest," said Virginia Canter, chief ethics counsel for Citizens for Responsibility and Ethics in Washington (CREW).
Republican FCC Commissioner Brendan Carr, an overwhelming favorite to become chairman when President-elect Donald Trump returns to office Jan. 20 (see 2411060042), said Thursday the FCC should stand down from working on controversial matters during the transition from President Joe Biden to Trump’s second term. House Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., sent FCC Chairwoman Jessica Rosenworcel a “pencils down” letter Wednesday (see 2411060043). Senate Republicans will likely send Rosenworcel similar demands soon.
Rural and high-cost areas throughout Alaska remain "some of the hardest and most costly to serve in the country," the FCC acknowledged in a Monday order establishing the Alaska Connect Fund (ACF), complementing the 2016 Alaska Plan (see 2410150048). The order will take effect 30 days after Federal Register publication. Also adopted on Monday was a Further NPRM seeking comment on implementation of the fund.
The outcome of Tuesday's Senate elections could scramble Senate Commerce Committee Republicans’ leadership structure given the competitive contest between ranking member Ted Cruz, R-Texas, and Rep. Colin Allred, his Democratic challenger. Four other panel members also face tough or competitive reelection fights (see 2411040051). Democratic leaders on the House and Senate Commerce committees indicated they intend to stay in those roles in the upcoming 119th Congress regardless of the election’s outcome.