Illustration: Maura Losch/Axios
Major tech programs could be swept up in the reconciliation process as Republicans search for savings.
The big picture: Lawmakers in red districts and their constituents are benefiting from broadband money, and it may be difficult and unpopular to upend these programs.
Driving the news: The House Budget Committee on Wednesday released a budget resolution that would require the Energy and Commerce Committee to find $880 billion to reduce the deficit from FY 2025 through 2034.
- The Senate is pushing ahead on its two-bill reconciliation strategy, with the Budget Committee approving its budget blueprint on Wednesday for a narrower bill.
Here's what we're watching:
Spectrum: E&C Chair Brett Guthrie told reporters on Thursday that spectrum is one of the menu items they're looking at.
- Congress let the FCC's spectrum authority lapse in 2023 for the first time in decades. Restoring that, coupled with building up a pipeline, could mean billions for the government.
- Sen. Marsha Blackburn at an event this week estimated spectrum could generate as much as $100 billion in revenue for the federal government.
- Blackburn is joined by Senate Commerce Committee Chair Ted Cruz and Commerce Department Secretary nominee Howard Lutnick in wanting to free up spectrum for commercial use, but they'll face resistance from the Defense Department and its allies on the Hill.
Broadband Equity Access and Deployment: The Biden-era BEAD program has come under fire from Republicans who say no houses have been connected to the internet since the Infrastructure Investment and Jobs Act passed in 2021.
- "You know how much money has been spent from BEAD? Not a single penny or a single inch of fiber has been built, so we need to look at all of that," Guthrie said.
- The program was always expected to take years, according to the statute, before homes could be connected or infrastructure could be built.
That's because the FCC had to finalize a map showing exactly where people need internet access.
- Middle Mile grants had to go out first, and it's taken companies time to re-shore jobs as the program required domestic fiber and equipment manufacturing.
- Republicans are eager to cut what they view as red tape and waste in the program, though it's not set in stone that reconciliation will be the vehicle.
What's next: Unlike the House, the Senate does not want one big bill. Upper chamber leaders are hoping to tackle the border, defense and energy first, then everything else.
- If the Senate approach prevails, tech action may get punted to a later time.
