CBO Scores the Public Safety Spectrum and Wireless Innovation Act

S. 911 would modify existing law regarding federal management of the electromagnetic spectrum. It would extend and expand the Federal Communications Commission’s (FCC’s) authority to auction licenses for commercial uses of the radio spectrum and would authorize agencies to spend some of those receipts for new purposes. Other provisions would create a Public Safety Broadband Corporation, which would receive federal financing to develop a wireless broadband network using spectrum provided by the bill.

Finally, the bill would require several agencies to conduct studies and issue regulations related to spectrum management, including measures aimed at expediting the siting of telecommunications facilities.

CBO estimates that enacting S. 911 would reduce net direct spending by $6.5 billion over the 2012-2021 period; therefore, pay-as-you-go procedures apply to the bill. The projected savings reflect an estimated increase in offsetting receipts from FCC auctions of $24.5 billion (which count against direct spending) and an increase in direct spending of $18.0 billion. Enacting this bill would not affect revenues.

In addition, CBO estimates that implementing this bill would increase discretionary spending by $43 million over the 2012-2016 period, assuming appropriation of the necessary amounts.