Oversight Hearing of the Federal Communications Commission

House Subcommittee on Financial Services and General Government

2025-05-21

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Source: Congress.gov

Summary

This meeting of the federal oversight committee focused on the Federal Communications Commission's (FCC) activities and priorities. Chairman Carr discussed the agency's efforts to expand access to communication services, secure national telecommunications infrastructure, and streamline operations. The committee inquired about various topics, including budget management, national security initiatives, broadband accessibility, consumer protection, media regulation, and diversity, equity, and inclusion (DEI) policies.

Themes

FCC Fiscal Management and Operational Efficiency

Chairman Carr detailed his extensive tenure at the FCC and the agency's current funding of $390.2 million, which is fully offset by regulatory fees from license holders. The FCC has identified significant savings, including a $567 million reduction in authorized contract spending and an estimated $27.8 million in actual cuts over the next two years, primarily from streamlining IT contracts, closing dormant dockets, and eliminating non-critical advisory committees. These efforts are part of a broader "Delete, Delete, Delete" initiative aimed at removing outdated regulations and fostering a lighter regulatory framework to encourage new investment. The agency has also seen a reduction in its workforce, moving from 1,461 to 1,383 full-time employees, attributed to natural attrition, early retirements, and normal retirements, while implementing a return-to-office policy to enhance collaboration and productivity.[ 01:45:40-01:45:47 ]

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Safeguarding Telecommunications Infrastructure

A key national security initiative is the "Rip and Replace" program, which has received approximately $5 billion in authorized funding to remove insecure equipment from networks, particularly that manufactured by companies influenced by the Chinese Communist Party.[ 00:24:50 ]

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 The program is about 28% complete and is expected to finish within the next year, with the remaining funding acquired through a Treasury loan that will be repaid using proceeds from AWS 3 Spectrum auctions. The FCC has also established a new Council on National Security to address multifaceted threats from foreign adversaries and is implementing new standards requiring independent and trustworthy labs to conduct national security checks as part of the equipment authorization process.[ 00:45:09 ]

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 Furthermore, an upcoming vote aims to increase transparency by publicizing a list of entities with concerning ties to foreign adversaries, mirroring the FACT Act. The FCC is also exploring alternatives to GPS to enhance the resilience of the nation's positioning, navigation, and timing systems.

Expanding and Modernizing Broadband Access

The FCC is committed to expanding affordable and reliable internet access in both rural and urban areas, acknowledging concerns about the expiration of the Affordable Connectivity Program. Key initiatives include restoring the FCC's general spectrum auction authority to facilitate the deployment of next-generation technologies like 5G and 6G, which can significantly reduce prices for consumers, and implementing permitting reform to streamline infrastructure development, particularly on federal lands. The Commission advocates for technology neutrality, supporting diverse solutions like fiber, low-Earth orbit satellites, and fixed wireless to bridge the digital divide more cost-effectively. Discussions also covered the Universal Service Fund (USF), which is crucial for rural broadband but faces sustainability challenges due to an increasing contribution factor and an ongoing Supreme Court case.[ 00:51:34 ]

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[ 00:52:07-00:52:17 ]

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 Looking ahead, the FCC plans to retire old copper line networks and replace them with modern, high-speed infrastructure.

Consumer Safeguards Against Scams and Data Breaches

The FCC is actively engaged in combating robocalls and internet scam attempts, which remain a top concern for consumers. Efforts include bolstering call-blocking rules, expanding the use of call authentication systems like STIR/SHAKEN, and collaborating with law enforcement and international counterparts to trace and disrupt illegal calls, especially those originating overseas. The agency is also addressing the rise of AI-generated scams, using AI as a tool for generating robocalls and as the content itself, and issues consumer advisories to warn the public about new schemes. An Inspector General report highlighted the FCC's past deficiencies in implementing data privacy technologies due to "higher priorities" and a "lack of expertise"; however, Chairman Carr assured the committee that data privacy and the modernization of IT systems are now a top priority for the agency.

Media Accountability and Localism

The meeting touched on concerns that the FCC has become "speech police," targeting media outlets perceived unfavorably by the president, asserting that the FCC's role should be in the public's interest, not the president's. Chairman Carr emphasized empowering local broadcasters by reforming outdated media ownership rules to allow them to compete more effectively and be more responsive to community needs.[ 00:34:32-00:34:39 ]

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 He highlighted the importance of local news and the responsibility of licensed broadcasters to operate with truth, balance, and objectivity, citing an ongoing investigation into CBS's deceptive editing. Advancements like ATSC 3.0 (Next Gen TV) are seen as crucial for enabling broadcasters to innovate, secure new revenue streams, and provide services like GPS backup. The non-commercial status of public broadcasters like NPR and PBS was questioned, particularly regarding whether they are running prohibited advertisements, which could impact their federal funding. Additionally, the importance of AM radio, especially in rural areas, was discussed, with support for legislation to ensure its accessibility in vehicles.

Scrutiny of DEI Practices and FCC's Authority

The committee raised concerns about the FCC's actions regarding private corporations' DEI practices, questioning whether the agency has become overly involved in this area. Specific questions were posed regarding the resources allocated to investigating DEI policies and the factual basis for allegations of "invidious discrimination" in letters sent to companies like Verizon. Chairman Carr emphasized that the FCC's mandate, derived from the Communications Act and EEO rules, is to ensure non-discrimination, clarifying that his focus is on intentional discrimination based on protected characteristics.[ 01:01:05 ]

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[ 01:02:40 ]

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 He distinguished the FCC's regulatory processes from judicial pleading standards, arguing that the agency does not require the same evidentiary basis as a court case. Chairman Carr also clarified that his visits to Historically Black Colleges and Universities (HBCUs) were related to workforce policies for the digital economy, not "invidious DEI discrimination."[ 00:53:35-00:53:36 ]

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Tone of the Meeting

The meeting maintained a professional and informative tone, with Chairman Carr providing detailed responses and readily offering further information when requested.[ 00:49:15 ]

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[ 01:12:47 ]

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[ 01:14:17 ]

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 While discussions generally proceeded smoothly, the topic of Diversity, Equity, and Inclusion (DEI) policies introduced moments of contention.[ 01:25:35-01:25:40 ]

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 Democratic members, particularly Donald S. Beyer Jr. and Glenn Frederick Ivey, raised pointed questions about the FCC's basis for investigating corporate DEI practices and its perceived "weaponization" of government. Chairman Carr consistently responded by distinguishing the FCC's regulatory authority and standards from those of judicial proceedings, defending the agency's focus on non-discrimination. Despite these exchanges, several members expressed appreciation for Chairman Carr's work and the FCC's efforts.[ 00:44:24 ]

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Participants

Transcript

the federal thank you the federal uh oversight of the federal communications commission members will have five legislative days within which to revise and extend their remarks and insert extraneous material into the record i now recognize myself for opening statement i'd like to thank chairman carr for being here today and for his leadership at the fcc federal communications commission was created for the purpose of expanding access to radio television and other communication services for all americans   Methods of communication have changed a lot since the FCC was founded more than 90 years ago.  Decades of technological advancements have made long-distance communications much more affordable.  In 2023, the total number of wireless connections within the United States reached almost 558 million, or more than 1.6 connections per American.   The FCC continues to play an important role in expanding access to new technologies and making communication services more affordable for all Americans.   Since fiscal year 2023, the FCC has received flat funding of $390.2 million.  Each year, the Commission's appropriation is fully offset by the collection of regulatory fees paid by license holders.  Not only is the FCC's appropriation fully offset, but the Commission routinely transfers any excess revenue to the Treasury for deficit reduction.  The FCC has become a leader in securing our nation's telecommunications infrastructure from national security threats.   The Rip and Replace program has provided essential funding to help service providers replace equipment manufactured by companies under the influence of Chinese Communist Party.  Congress has authorized close to $5 billion for these efforts.  I look forward to hearing more about that important program and the progress that continues to be made.   I'm also encouraged by Chairman Carr's efforts to identify and remove unnecessary regulations that inhibit innovation and economic growth.  Since March of this year, the FCC has been collecting feedback from the public on regulatory changes that will facilitate and encourage investment in modernizing networks, developing infrastructure, and promoting competition.
In addition to its deregulation efforts, the FCC has taken concrete steps to streamline agency processes and eliminate wasteful spending.  Just last week, the Commission announced more than $567 million in expected savings from reduced contract spending.  I am interested to learn more about these efforts, the steps Chairman Carr is going to take to improve the agency's fiscal health, and your priorities more generally to the Federal Communications Commission and how this committee can assist in achieving those goals.  I now recognize the ranking member for his opening remarks.
Thank you very much.
A timely appearance.
Thank you very much.  Thank you, Mr. Carr, for being with us.  We had a good conversation in my office.  This probably won't be as   cordial as we were, but I'm very concerned.  When Donald Trump spoke before the Congress in March, he said this, I've stopped all government censorship and brought back free speech in America.  It's back, he said.  Now, he'd also said during the campaign to his supporters, I am your retribution.  You may remember that quote.  That rang   in my ears and gave me great concern.  The FCC's actions the past few months make it clear just how relevant those comments were.  What was once an independent and partial agency, not always devoted to keeping Americans connected, has become, in my view, to some degree, the speech police.   another cudgel in the President's culture war.  Since Trump took office, the FCC has gone after private corporations over their DEI practices.  Very frankly, my view is that may be a practice that he can impose on the federal government, but is not a practice that he can impose nor should he impose on the private sector, whatever the views we may hold.  The agency, in my opinion, has also targeted   NPR, PBS, NBC, ABC, and CBS, and other networks apparently who are perceived unfavorably to the president and to his policies.  The First Amendment, of course, is not intended to protect the president from the press.
It is intended to protect the president, excuse me, the press against the government.   Nor was the FCC established to act in the president's interest, but rather in the public's interest.  Now, more than ever, the American people are counting on the FCC to focus on its mission under law.  Something we discussed in my office, however, was when he removed FTC commissioners, he did it because, quoting, or trying to quote, that the actions of those commissioners were   incompatible with the priorities of the administration.  Communications technologies that fall under the FCC's purview are fundamental to everything in modern life.  They shape our commerce, our education, our national security, our health care, and our elections.  In an increasingly digital world, the FCC needs to ensure that we don't leave that behind.  That means expanding – oh, this is inconvenient.   That means expanding affordable, reliable access to the internet and other crucial technology in both rural and urban areas.  I represent urban and rural areas.

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