Senator Ted Cruz’s proposal to reauthorize the Federal Communications Commission’s (FCC) spectrum auction authority and establish a robust spectrum pipeline is projected to generate substantial economic benefits. According to the Congressional Budget Office, the plan could raise approximately $85 billion over the next decade through the auctioning of at least 800 megahertz of spectrum. Other estimates suggest that the revenue could reach up to $88 billion.
The Federal Communications Commission’s (FCC) authority to conduct spectrum auctions—central to deploying next-generation wireless networks—has expired. But a significant move by Senate Commerce Committee Ranking Member Sen. Ted Cruz (R-TX) has energized efforts to reauthorize that authority and reinvigorate the U.S. spectrum pipeline. His proposal, included in the recently released budget reconciliation text, is now gaining powerful industry backing.
Sen. Cruz’s legislative language would:
- Restore the FCC’s spectrum auction authority through September 30, 2034, allowing the agency to resume issuing commercial licenses via competitive bidding.
- Establish a robust pipeline of mid-band spectrum—specifically directing the National Telecommunications and Information Administration (NTIA) to identify 500 MHz of federal-use spectrum between 1.3 GHz and 10.5 GHz for potential reallocation.
The plan requires the FCC to auction at least 300 MHz of spectrum before the end of the authority window, including a mandatory auction of 100 MHz between 3.98 and 4.2 GHz within the first two years of enactment.
NATE applauds Cruz’s spectrum initiative
In a strong endorsement, NATE: The Communications Infrastructure Contractors Association issued a press release praising Cruz’s initiative and calling on lawmakers from both parties to act swiftly.
“For years, the lapse in FCC spectrum auction authority and the absence of a clear spectrum pipeline have hindered our workforce and delayed deployment of next-generation internet infrastructure,” said Todd Schlekeway, NATE President & CEO.
“Chairman Cruz’s legislative initiative addresses these challenges head-on, paving the way for enhanced wireless infrastructure deployments by NATE member contractor firms across the nation.”
“By unlocking additional spectrum for commercial use, this proposal will enable our member companies to expand and upgrade wireless networks, ensuring that America remains at the forefront of global connectivity. This is not just about faster internet; it’s about empowering communities, fostering innovation, and securing economic growth,” said Schlekeway.
Targeted spectrum, but national security carveouts remain
The proposal excludes certain bands from the auction—specifically, 3.1–3.45 GHz and 7.4–8.4 GHz—likely due to their use by military or intelligence agencies. The President retains the authority to withdraw or modify spectrum reallocations up to 60 days before a scheduled auction to protect national security.
The bill also appropriates $50 million to the Department of Commerce to:
- Conduct feasibility studies on key spectrum ranges (including 2.7–2.9 GHz, 4.4–4.9 GHz, and 7.25–7.4 GHz)
- Publish biennial reports assessing the value of spectrum held by federal entities
This data-driven approach aims to ensure long-term planning, accountability, and efficient reallocation.
Time-sensitive legislative path forward
If Congress fails to reauthorize the FCC’s auction authority soon, it risks derailing wireless buildouts, slowing innovation, and hindering economic opportunities, particularly in underserved rural communities. It would also deal another blow to wireless contractors already strained by unsustainable matrix pricing models.
Though Cruz’s proposal is now embedded in reconciliation language, its success depends on bipartisan cooperation. With America’s global leadership in 5G and wireless innovation at stake, industry leaders are urging swift passage.
“This is a pivotal moment,” said Schlekeway. “Congress must act decisively to ensure the U.S. wireless infrastructure sector has the resources and authority it needs to connect communities and compete globally.”
The Competitive Carriers Association President and CEO, Tim Donovan, made the following statement:
“CCA is encouraged by the agreement on spectrum auction language as the Senate considers the reconciliation bill. Restoring the FCC’s spectrum auction authority is long overdue and essential to ensure continued innovation and investment in next-generation wireless and broadband services. We are especially pleased to see the commitment to make at least 800 MHz of spectrum available, with a focus on mid-band spectrum. As negotiations move forward, Congress should ensure that any newly available spectrum is auctioned by the FCC in a way that provides meaningful opportunities for competitive carriers, including those committed to serving rural America.”
Newly installed CTIA President and CEO, Ajit Pai, a former chairman of the FCC, said, “Senator Cruz’s inclusion of a robust spectrum pipeline alongside renewal of FCC spectrum auction authority is critical to restoring America’s leadership in wireless and innovation.”
“His bold approach answers President Trump’s call to keep all options on the table and provides the President with full flexibility to identify the right bands to meet surging consumer demand, safeguard our economic competitiveness, and protect national security. I want to thank Senators Cruz, Thune, and Blackburn for demonstrating the courage we need, and I urge Congress to move swiftly to pass this legislation and ensure all Americans benefit from world-leading wireless connectivity.”
Patrick Halley, President and CEO of WIA: The Wireless Infrastructure Association, in a statement, said, “WIA appreciates Senator Cruz and Thune’s leadership in including a fulsome spectrum pipeline and FCC auction authority in the Senate’s reconciliation package. America’s economic and technological future is premised on bolstering wireless connectivity in every corner of America. Coupled with a continued focus on smart permitting policies, the Senate’s plan to unleash new spectrum will do exactly that. Congress should move quickly to pass this important spectrum legislation.”