Congress Restores FCC Spectrum Auction Authority, Mandates $85 Billion in New Airwave Sales

Image for Congress Restores FCC Spectrum Auction Authority, Mandates $85 Billion in New Airwave Sales

WASHINGTON, D.C. – The Federal Communications Commission (FCC) has regained its long-lapsed authority to auction public airwaves, a power restored through the passage of the "One Big Beautiful Bill" by Congress. The legislation, which passed the House on July 3 and is expected to be signed into law by President Donald Trump, mandates the FCC to raise $85 billion in federal revenue by auctioning at least 800 megahertz (MHz) of spectrum. This development marks a significant shift in U.S. telecommunications policy, aiming to accelerate wireless innovation and expand high-speed connectivity.

The FCC's spectrum auction authority had lapsed in March 2023, the first time in three decades, leading to concerns about the U.S. falling behind in global wireless development. The newly enacted bill not only reinstates this crucial power but also establishes a clear pipeline for future spectrum availability, a key priority for the wireless industry.

Ajit Pai, former FCC Chairman and current President and CEO of CTIA, the wireless industry association, lauded the congressional action. In a tweet, Pai stated, > "For the first time since it lapsed in 2023, the @FCC has the authority to auction the public airwaves for the benefit of the public. And for the first time ever, there’s an 800 MHz roadmap for wireless innovation. A great day for consumers and the country!" His remarks underscore the industry's long-standing advocacy for renewed auction capabilities to meet surging consumer demand for mobile data.

The 800 MHz band has historically been critical for public safety communications and cellular services, undergoing significant rebanding efforts to mitigate interference. While a specific new "800 MHz roadmap" document for wireless innovation wasn't detailed in public records, Pai's statement suggests a broader strategic vision for this band's role in future wireless advancements under the new authority.

The restoration of auction authority is expected to fuel 5G deployment and other advanced wireless services. However, the legislation has sparked debate among various stakeholders. Wireless carriers, represented by CTIA, advocate for exclusive licensed spectrum to expand network capacity. In contrast, cable companies, consumer groups, and small internet service providers express concerns that mandated auctions, particularly in bands like 6 GHz and Citizens Broadband Radio Service (CBRS), could jeopardize existing shared and unlicensed uses vital for Wi-Fi and rural connectivity.

The "One Big Beautiful Bill" is anticipated to generate substantial revenue for the federal government and is seen by proponents as essential for maintaining U.S. leadership in wireless technology and fostering economic growth. The FCC, now with its auction authority restored, is poised to begin the process of identifying and releasing spectrum to meet the legislative mandate.