Broadband and needed upgrades to the 911 emergency system. The house appropriation hearing is about 90 minutes. [inaudible conversations] [laughter] a sub command Financial Services and general government will come to order like to welcome chairwoman jessica and commissioner car. I appreciate both the participating in todays hearing to give members the subcommittee the opportunity to discuss federal committee this fiscal year 20125 budget requested. The budget request for the commission is more than 4,048,000,000. 15 higher than the original fiscal 2824 enacted a level much harder to increase the commission has historically requests are surprises to the commission failed to request the funding for the secure trusted Communication Network program rip and replace as you dont rip and replace his important priority particular to ensure the Communication Infrastructure safe from foreign interference. Conversely due to budget shortfalls repair or replace ply small providers invested money to remove ive got it and equipment. They do not funds to replace the commission has right on prior supplemental funding request instead of working proactively with congress on a clear path forward to address the shortfall. Something similar could be said for the continuance of the Affordable Connectivity Program. This administration the contagiousness of the program is a top priority are relying on the expectation of emergency spending measures that fall outside of her annual budget cast. However six ability no emergency request for the program can only be a temporary fix. The fcc is going to prioritize bring a portable highspeed broadband to the country and nes to weigh the cost of doing so in shorts implemented in a targeted way to prevent unnecessary payments. This program is right for congressional oversight on the agencys Inspector General sound the alarm on whether the service is going to those it is intended to help. The funding for the commission is fully offset by fees, congress is an Important Role in providing oversight for the commissions work that remains a focus on its core mission. The recent action by the Commission Congressional oversight is more important than ever. Last month the Commission Voted along party lines to revive the obama era Net Neutrality policy. Contrary to the fear mongering we heard years ago the internet is accessible. Even more today than it was 2017 accessibility includes higher Broadband Speed increase competition not to mention continued expansion of teleCommunication Infrastructure in the country. My view this action the politicized policy it has a Statutory Authority. Such actions are not what an independent agency such as this should be focused on with that being said im in courage by the steps the commissions taken to expand the use of the 988 suicide hotline and hope to do with commission to ensure emergency calls include suicide and ventricle are transient Ranking Member for any for his opening remarks. Correct thank you very much mr. Chairman. Welcome. Chairman carr, and ms. Rosenworcel. Tough name. Youd never get it the first time. When the communication act of 1934 established the federal Communications Commission, and define the Agency Mission to ensure the American People have available at reasonable cost and without discrimination rapid and efficient national and worldwide communication services. Communication technology of course has changed dramatically in the last 90 years. Fccs work is even more important, increasingly important today than it was nine decades ago. And the 21st century access to Economic Opportunity clearly depends on access to highspeed internet. Whether its for education, or Core Healthcare the internet is no longer a luxury, it is a necessity. One could say that simply about the telephone for a longer period of time in our cell phones. Nevertheless, still lack access to broadband. The fcc has done an excellent job tracking these gaps in internet coverage within its new National Broadband map. Americas Digital Divide is still too big but it would be much bigger were it not for the fcc. The fcc has done a terrific job in my opinion to expand a portable highspeed Broadband Access throughout the country. Especially in rural areas. Although i would note wheat found in big cities they were deserts with no access fccs Affordable Connectivity Program has been central to that effort. As of last month 23 million or one and every six households in america were enrolled in the Program Saving 30 75 a month on the internet costs. That includes 21036 households in maryland fifth district. Which im proud to represent ive heard directly from my constituent republicans and democrats about how important the acp for positive impact of been on the lives of their citizens. Just a few weeks ago when family down in st. Marys county explained to me how they had struggled during the pandemic they cannot afford highspeed internet. Their High School Student had to go to a friends house just to attend class and keep up with their studies. Parents had a drive to the local Church Parking lot just to get Internet Connection to telework. That all changed last year they were able to get their home connected, thanks to the acp. The family told me quote we do not know what we would have done without the efforts of our governor. House majority leader at last congress i was proud to help secure funding for the acp and the bipartisan info structure law. That funding however has run out. It is crucial that my colleagues across the aisle and on our side to take immediate action to extend this program. If we fail to do so 23 million americans will either see their internet costs go up or lose connection altogether. Additionally we ought to work with all of us together to fulfill the fcc fiscal year 2025 request of 448 million which of course is fully offset by fees. The fcc needs these resources help close the Digital Divide and carry out other key duties from protecting consumers to promoting fair competition in the industry. I think chair rosenworcel and commissioner carr for testifying today. I look forward to hearing not only about the programs we have talked about but such programs you believe hopefully are critically important to focus on her thank you very much mr. Chairman. Thank you mr. Hoyer. Chair rosenworcel without objection or full written testimonies entered into the record. As you summarize your testimony five minutes. Thank you. Chairman joyce, Ranking Member hoyer and members of the subcommittee p thank you for inviting me too appear before you say to review the fcc fiscal year 2025 budget request. Communication technologies power at 16 of the nations economy and Everyone Needs access to them to have a fair shot at 21st century theft. As fcc has worked hard to develop a budget of just over 448 million. This will uphold the core values and our outlaws Consumer Protection, universal service, National Security and Public Safety while keeping pace with evolving technology. Although this is not my first year end before the subcommittee, it is my first presentation of the budget is chairwoman the first woman to permanently lead the agency under nations history. Let me highlight some of the work under my leadership. First, fcc built the Affordable Connectivity Program the largest broadband affordability effort in our nations history and help 23 million households today get online and stay Online Congress provide the funds for this part of the bipartisan infrastructure law rather than as part of the fcc annual budget. However, finding to give these households connected will be exhausted this month. I strongly support efforts to continue to fund this program so more families can get connected to the broadband they need to fully participate in modern life. Second, agencies work to create the National Broadband map the most accurate broadband map weve ever created will help us close the Digital Divide but for years fcc produced broadband maps that did not provide a clear picture of where the service is and is not all across the country. That change with the passage of the broadband data act and funding from congress. As a result new broadband map has been used to distribute billions for broadband deployment in the bipartisan info structure law. This is the map we need to keep updated so there is accountability for every federal dollar that is spent building this highspeed infrastructure that is why our budget request includes a 30 milliondollar increase to its base support. Third, fccs do more than ever before to keep our communication secure. For the first time in history we have revoke the authorization to provide Telecommunication Services which will soon include broadband and not just Voice Service for chinese communication providers spread on top of this we have implemented secure and trusted Communication Network act artwork with care is to remove insecure equipment from their network. Unfortunately face a 3. 8 billion dollars shortfall to reimburse carriers for the full removal and disposal of this equipment. Unless we receive additional appropriation, we can only provide 40 cents on the dollar to the skiers that have this equipment right now this threatens our National Security and risks a shutdown of networks in rural areas. We are doubling down our efforts to stop scam robocalls and robotech using new technology and new tools. Because this a problem that requires coordination we now have a memorandum of understanding with attorneys ats general from 49 states who are working with us on this problem already we have made progress stopping auto warranty scams, student loan scams in a voice quoting scams but we need new authority from congress to stop this junk id be happy to share more of that. Fifth, or doing our part to keep pace with the incurring importance of spacebased communication thanks to your approval of art Re Organization the Agency Bureau is up and running. Fcc adopted new rules to streamline our satellite policies and new licensing scheme for commercial space launch is plus we have a new person in the world framework for the convergence of satellite and terrestrial communications. Called the Single Network future. Sixth, and implement the pirate out broadband licensed broadcasters with the budget you provided. Last but not least we want to do or to support Wireless Communications of the future. But in this regard we face a real challenge. Last Year Congress let the fcc authority to auction spectrum expire. We need this authority back up her for three decorate these auctions help us distribute airwaves for wireless deployment and innovation. They also raise more than 233 billion for the nine states treasury. We need congress to restore this authority because failure to do so will risk our leadership in 5g, 6g, and beyond. I hope to work at the develop the physically or 2012 bill im sure the fcc can accomplish its statutory objective. On a personal note i want to thank you for rescheduling this hearing to a comment at my fathers funeral but we may have differences of opinion but im grateful for your willingness first and foremost to acknowledge our shared humanity. Thank you chairwoman rosenworcel. Mr. Car without objection full written testimony into the wreck with that in mind we ask you summarize your Opening Statement to five minutes. Thank you. Chairman joyce, Ranking Member hoyer, distinguished members of the subcommittee, thank you for the invitation to testify. This is my first time appearing before appropriations it is an honor to be here. For years ive had the privilege of working alongside fcc talented Public Servants and have welcome the chance to work with chairwoman rosenworcel to advance our shared priorities but we have worked together on telehealth initiatives, standing up 988 as a National Crisis line, enhance competition and secured our networks. I also agree with the number of the telecom request the administration budget. I agree congress should restore the Fcc Auction Authority by auctioning spectrum, the fcc not only enhances competition, we raise billions of dollars for reducing the national debt. I also agree congress should fully fund the rip and replace initiative. Turning to the fccs own budget request i was unable to support it. First, i do not support fccs request for a 14. 8 increase in its budget. This increase marks a significant departure from agency precedent is a detail my testimony. Second i do not support expanding fcc headcount indeed at the fcc hired up to the 1600 ftes it has requested it would represent the largest percentage increase in Agency Employees since the 1996 act. Third i do not support fccs request for a 5. 1 increase first Spectrum Program as detailed in my testimony the Biden Administration is stalled out on spectrum auctions therefore i do not see a reason for increasing the fcc auction budget at this time. One example of the agencys pursuit of title ii regulations for the internet. A decision to of president obamas former solicitors general stated will not survive or review. Indeed, they said fcc pursuit of title ii represents a massive waste of Government Resources a loss opportunity to advance more pressing policy goals. I agree fcc should not spend any more resources is the budget to promote diversity, equity, and collusion as well as accessibility. Its not clear to meet with the sec means after mint de eyes a second highest priority. The budget does not add much clarity to promote it the fcc will use funds to identify and eliminate historical systemic and structural barriers that perpetuate disadvantage or underserved individuals. It envisions quarterly dialogue sessions, regular webinars global awareness. Tortoises damages spent on this initiative for the fcc should refocus its priorities around several core goals is a detail my testimony. Finally, congress has been considering the future of the program. Back in 2020. Funded it with over 17 billion. I have encourage the fcc to implement acp by focusing on americans without any Internet Service. That is why the fcc determined primary goal of acp should be to close the Digital Divide by reducing the broadbent affordability gap. Us is he agreed to prioritize outreach application then roll those without a connection. For its part the Biden Administration highlights the fact 23 million households are enrolled in acp as a way to make in the case for the program success. The issue requires a more thorough analysis. 21. 8 of acp beneficiaries previously lack internet. About 85 of acp generate fisheries today would still have Internet Service but without the program. Even the data, i do not believe, congress should simply add more money to acp. Instead it should focus on reform that means taking a fresh look at eligibility, targeting those that would otherwise lack service. Rightsizing the effort and significantly increasing program safeguards. In closing out to thank you again for the opportunity to testify. I look forward to your questions. Thank you commissioner. Five minutes exactly. We now begin our question each member will have five minutes for question and answers. When the timer turn scale you have one minute remaining first i will recognize myself. As i mentioned during my Opening Statement, i was interested but not surprised to see the agency requested no money within the Budget Proposal for trusted Communication Network program known as rip and replace the Budget Proposal back to supplemental appropriation requests to attempt to rely on emergency spending rather than be clear about the overall budget request for the fcc. Chair, but how many small providers are you aware of that have invested dollars to remove equipment but it leaning on funds from congress to replace it . Thank you for the question. How to point out from the start that i agree with you. Getting funded for this program is essential that we need to take insecure equipment from china out of our nations network. We have roughly 122 providers that have signed up for reimbursement. At present based on the Congress Gave us we can only allow 40 cents on the dollar for the replacement of that network equipment. It