CBO Scores 5G Spectrum Act

The 5G Spectrum Act of 2019 (S. 2881) would amend existing law regarding the disposition of offsetting receipts from an auction of licenses to use a section of electromagnetic spectrum often called the C-band. Under the bill, the Federal Communications Commission would be authorized to spend, without further appropriation, up to 50 percent of the auction proceeds to compensate current users and another 10 percent for programs that support the deployment of broadband infrastructure in rural areas. The rest—which could exceed 40 percent of the total if gross auction receipts exceed $40 billion—would be deposited into the Treasury. The bill would direct the FCC to begin the auction by the end of calendar year 2020 and to deposit the receipts into the Treasury by the end of calendar year 2022. Other provisions of S. 2881 would require the FCC to issue rules certain taxing jurisdictions must follow to spend fees collected to support or implement 911 or enhanced 911 services. CBO estimates that under current law the auction of licenses to use 280 MHz of C-band spectrum will generate net offsetting receipts totaling $15.4 billion over the 2020-2030 period.