crs_reports: R48862

Congressional Research Service reports with summaries, authors, and topic classifications.

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R48862 Spectrum Provisions in P.L. 119-21, the FY2025 Reconciliation Law 2026-02-25T05:00:00Z 2026-02-26T17:08:12Z Active Reports Jill C. Gallagher   The FY2025 reconciliation law (P.L. 119-21; commonly known as “the One Big Beautiful Bill Act”) was signed into law on July 4, 2025. The act was established pursuant to H.Con.Res. 14, a budget resolution, which set budgetary goals for certain House and Senate committees. The House Committee on Energy and Commerce and Senate Committee on Commerce, Science, and Transportation each developed proposals to meet budgetary targets, which included provisions to auction radio spectrum, and to use the proceeds to meet budgetary goals. The spectrum auctions are expected to generate over $85 billion from FY2025 to FY2034, according to the Congressional Budget Office. P.L. 119-21 directs the National Telecommunications and Information Administration (NTIA), an agency in the Department of Commerce (DOC) responsible for managing federal spectrum use, and the Federal Communications Commission (FCC), which is responsible for managing nonfederal spectrum use (i.e., commercial, state, and local spectrum use), to make 800 megahertz of spectrum available for commercial mobile services while also excluding certain bands from auction. Title IV, Section 40002, of the act contains the following provisions: The FCC’s general auction authority (which had expired on March 9, 2023) is reinstated through September 30, 2034, excluding the 3.1-3.45 gigahertz (GHz) and 7.4-8.4 GHz bands from auction. The FCC is required to grant licenses through competitive bidding (i.e., auctions) for 300 megahertz of spectrum, including not less than 100 megahertz in the 3.98-4.2 GHz band within two years of enactment. The Assistant Secretary of Commerce for Communications and Information (i.e., head of NTIA), with the FCC, is directed to identify 500 megahertz of spectrum in the 1.3-10.5 GHz range (excluding the 3.1-3.45 GHz and 7.4-8.4 GHz bands) for reallocation from federal use to (1) nonfederal use, (2) shared federal and nonfederal use, or (3) a combination thereof for full-power commercial licensed use. It directs the FCC to complete, within four years of enactment, one or more auctions for no less than 200 megahertz of this spectrum and, no later than eight years after enactment, one or more auctions for the remaining spectrum. DOC is provided $50 million to assist the head of NTIA with analysis of three bands (2.7-2.9 GHz, 4.4-4.9 GHz, and 7.25-7.4 GHz) and to publish a biennial report on the value of federally held spectrum. In the past, Congress has taken a similar approach when renewing the FCC’s spectrum auction authority. With past renewals, Congress often required the FCC and NTIA to make additional spectrum available for commercial use through auctions. In some cases, Congress has named specific bands for auction; in other cases, Congress directed the FCC and NTIA to identify and reallocate bands for auction. In P.L. 119-21, Congress does both and also excludes certain bands from auction. With the growth in wireless communications, demand for spectrum is increasing. Making spectrum available for commercial use can spur innovation, improve services, yield economic gains, and bolster U.S. leadership in the global telecommunications market. However, much of the spectrum in the mid-band range (1-6 GHz)—where P.L. 119-21 is targeting spectrum for reallocation—is already in use. Identifying spectrum for reallocation is complex and often requires technical studies and time to determine the feasibility and costs and benefits of sharing or reallocating spectrum, including costs to reconfigure or relocate communication systems. The FCC and NTIA may face challenges in identifying and reallocating 800 megahertz of spectrum for full-power commercial licensed use in the spectrum range and timelines specified in the act, some of which were expedited in a December 19, 2025, presidential memorandum. A challenge for the FCC and NTIA is balancing spectrum needs of incumbent users, including federal agencies performing critical functions, and commercial users, which can spur economic growth. Configuration of spectrum and terms of use can affect auction proceeds. As Congress is relying on proceeds from spectrum auctions to fund provisions in P.L. 119-21, it may seek to monitor (1) agencies’ progress in identifying spectrum for reallocation; (2) bands selected for reallocation; (3) the impact of reallocation on incumbent users, including federal agency users; (4) auction proceeds and timelines to ensure budgetary targets are met; and (5) costs of reallocations that can diminish auction proceeds. An area of debate may be balancing spectrum use between users (e.g., federal and nonfederal) and among technologies (e.g., mobile, satellite, Wi-Fi). Other areas of interest for Congress may be enhancing interagency coordination on domestic and international spectrum decisions, and supporting research and development of new spectrum-sharing approaches. https://www.congress.gov/crs_external_products/R/PDF/R48862/R48862.1.pdf https://www.congress.gov/crs_external_products/R/HTML/R48862.html

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