Commerce Department’s Proposed 2012 Budget

The Commerce Department’s proposed 2012 budget reduces spending by $242 million. Among the cuts and reductions include $20 million by eliminating the Public Telecommunications Facilities, Planning and Construction Program.

Under the proposal, the National Telecommunications and Information Administration would administer funding for a national mobile broadband network for first responders. The budget includes $7 billion for the network to be administered by NTIA in an effort to "expand the availability of spectrum to various important users," Rebecca Blank, acting deputy secretary of Commerce said.

Under the proposal, NTIA would be given $7 billion dollars to allot to public safety agencies at a rate of $1.4 billion per year, over five years. The effort would likely take the form of a grant program, according to analysts, who said they expect that this total includes oversight funding. The White House estimates the cost of the network at over $10 billion, but that includes as a cost the $3 billion the government would cede by choosing not to auction off the D Block of spectrum to commercial providers. Under this proposal, the D Block would instead be devoted directly to police, fire and other safety agencies. Seven billion dollars is still well below the FCC's guess for how much the network would cost, which placed its estimate at up to $15 billion last year. The public safety proposal is contingent on Congress passing incentive auction legislation to pay for the network.