Post-Election Outlook | New Leadership Impacting the TMT Industry: A Path Forward for the FCC, NTIA, FAA and on the Hill

November 27, 2024

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At the FCC. President-elect Donald Trump has announced that he will elevate current senior Republican Commissioner Brendan Carr to the Chairman’s seat. Commissioner Carr has been a dynamic force at the Federal Communications Commission (FCC) for years, and is particularly focused on deregulation, competition, infrastructure development and national security. Commissioner Carr will, of course, change direction from current Chairwoman Jessica Rosenworcel on a number of issues, including net neutrality, digital equity and market competition. His agenda and focus also will be different and could include helping the federal government rationalize spending of all the broadband funding that has been allocated, advancing rules for content moderation online and leveling the playing field for communications providers that offer the same services, but over different platforms. How quickly he can embark on his agenda will depend on how quickly Congress can confirm another Republican commissioner to the FCC. During Chairwoman Rosenworcel’s leadership at the FCC, it took over two and a half years before there were five commissioners seated at the FCC and she had a Democratic majority. Until the additional Republican commissioner is confirmed, the agency will be evenly split, with two Democrats and two Republicans, making it difficult to move ahead with most major reforms. Getting a third Republican commissioner confirmed by a Republican Senate should occur relatively quickly, but the Senate calendar is crowded, and other nominations will likely take priority. Sen. Roger Wicker (R-MS), former Chair of the Senate Commerce Committee, has endorsed his longtime staffer, Olivia Trusty, for the open position. Other names that have been floated include Senate Commerce Committee Policy Director Arielle Roth and former FCC General Counsel Tom Johnson. Additionally, Republican Commissioner Nathan Simington’s term has expired, though he is able to remain in his position until January 3, 2026. This will require either the renomination of Simington or the nomination of another Republican for the seat.

On the Hill. With Republicans taking control of the Senate, Sen. Ted Cruz (R-TX) will take the reins as Chairman of the Senate Commerce Committee. Sen. Cruz’s top priorities are expected to include advancing legislation to free up spectrum for commercial use, such as the Spectrum Pipeline Act, renewing the FCC’s auction authority and reforming the Broadband Equity Access and Deployment (BEAD) Program. Sen. Cruz just sent a letter to National Telecommunications and Information Administration (NTIA) Administrator Alan Davidson warning that Congress will be reviewing the BEAD Program early next year, “with specific attention to NTIA’s extreme technology bias in defining ‘priority broadband projects’ and ‘reliable broadband service’; imposition of statutorily-prohibited rate regulation; unionized workforce and DEI labor requirements; climate change assessments; excessive per-location costs; and other central planning mandates.” Advancing privacy legislation may also be a priority for Sen. Cruz.

In the House of Representatives, current Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers is retiring. The top three candidates to replace her are Congressmen Brett Guthrie, Bob Latta and Richard Hudson. Congressman Latta is the current chair of the Communications subcommittee and is therefore particularly attuned to issues impacting the TMT industry—to date, he has been mostly focused on deregulation and BEAD Program oversight.

At NTIA. Expect to see changes in leadership and possible downsizing at NTIA. Given President-elect Trump’s desire to have control over agency decisions, including the FCC, and in view of the fact that NTIA is an executive agency and not independent like the FCC, we anticipate that NTIA may become an even more important player on communications issues. We expect new leadership at NTIA will be focused on revisiting the agency’s broadband programs (especially BEAD), rescinding or modifying the National Spectrum Strategy and generally pushing more spectrum out.

At the FTC. Lina Khan, Chair of the Federal Trade Commission (FTC), will almost certainly be ousted under President-elect Trump. Andrew Ferguson, who is currently an FTC commissioner, is President-elect Trump’s nominee for Chair of the FTC.

At the FAA. It is possible the new Trump administration will move to rein in the Federal Aviation Administration’s (FAA) authority, tamping down on “overzealous” regulations governing the agency’s oversight of commercial space. Republicans have been critical of the FAA’s licensing and permitting processes.

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