‘The Art of a Spectrum Deal’
June 16, 2025
The Wall Street Journal’s Editorial Board commends Chairman Cruz and President Trump for breaking a political impasse to unlock billions for American taxpayers
WASHINGTON, D.C. – In case you missed it, the Wall Street Journal Editorial Board praised Sen. Ted Cruz (R-Texas) and President Trump for securing a major legislative breakthrough to reinstate spectrum auction authority. The agreement, included in Senate Commerce Committee’s section of the Senate budget reconciliation text, balances key national security interests with consumer demands, establishing the largest spectrum pipeline ever. The spectrum provision will generate an estimated $85 billion for American taxpayers, drive consumer-focused innovation in connectivity and AI, and secure American leadership in next-generation technologies.
On June 5th, Sen. Cruz released the Senate Commerce Committee’s portion of the Senate Republicans’ budget reconciliation bill. President Donald Trump applauded Sen. Cruz for negotiating a spectrum deal with Sen. Roger Wicker (R-Miss.), Chairman of the Senate Committee on Armed Services, and Sen. Tom Cotton (R-Ark.), Chairman of the Senate Republican Conference and Senate Select Committee on Intelligence. Industry leaders and respected policy institutions proclaimed the directive as a win for American innovation, competitiveness, and consumer connectivity.
Read the Wall Street Journal HERE or below.
Who would have expected that broadband spectrum would create an enormous logjam in Congress? Well, it has. But at long last Republicans have struck a deal to auction more government spectrum as part of the tax bill, which may be the closest thing there is to a free government lunch.
The 2023 expiration of the Federal Communications Commission’s authority to sell government spectrum licenses has slowed plans to build out broadband networks and put existing airwaves to more productive use. However, discussions in Congress to renew the FCC authority stalled owing to a lack of leadership by Joe Biden.
Federal agencies have resisted relinquishing their spectrum even when they aren’t putting it to good use. They also don’t want private companies building in their spectrum backyards. The Defense Department claims private deployment in certain frequency bands will disrupt its systems, though the FCC disagrees.
Credit to Texas Sen. Ted Cruz and Mr. Trump for massaging the competing interests. Their mooted deal would give the FCC authority to auction 800 megahertz of spectrum through 2034 with 500 of that coming from government agencies within the 1.3 and 10.5 Gigahertz (GHz) range that is especially useful for mobile providers.
The deal excludes from the auctions two bands—3.1–3.45 GHz and 7.4–8.4 GHz—that Defense claims could interfere with satellites and radar. Because Defense holds the bulk of government spectrum, it would still have to make some of its holdings available for the FCC to auction. Mobile providers and other companies could then bid for it.
GOP Senators on the Armed Services Committee who earlier objected to the spectrum sales owing to concerns about military interference are backing the deal. As President Trump recently noted on social media, bolstering national security and connectivity aren’t mutually exclusive and can be reinforcing: “Never bet against American ingenuity.”
Republican leaders expect the auctions to generate $85 billion in revenue for the government over 10 years, but they will yield broader economic benefits. More spectrum in private hands will undoubtedly make internet faster and could reduce the cost of data plans. It could also help mobile providers compete with cable companies in fixed broadband.
Broader deployment of self-driving cars will require loads more spectrum since remote overseers must be able to seize control of a vehicle instantaneously to avoid a collision. A little latency isn’t a big problem when streaming a movie, but it could have life and death consequences on the road.
More spectrum will also facilitate more innovation in artificial intelligence. It could support more drones that assist with law enforcement, inspect infrastructure such as transmission lines and railroad tracks, and deliver groceries. The sky of spectrum uses has no limit. Oh, and the deal will pre-empt Democrats in the future from using spectrum proceeds to fund broadband subsidies. Well done.
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