CBO Scores PLAN for Broadband Act

The PLAN for Broadband Act (S. 2238) would 1) appropriate $7.0 billion for the Affordable Connectivity Program and $3.1 billion for the Supply Chain Reimbursement Program, both administered by the Federal Communications Commission (FCC), 2) direct the FCC to auction its inventory of spectrum licenses within the band of frequencies commonly referred to as the AWS-3 bands, and 3) impose a private-sector mandate. The bill also would require the FCC and the National Telecommunications and Information Administration (NTIA) to report to the Congress on a national strategy to synchronize federal broadband programs and their implementation plan. Finally, the bill would require the Government Accountability Office (GAO) to study the efficacy of that plan. CBO estimates that enacting S. 2238 would, on net, increase direct spending by $6.5 billion over the 2025-2034 period; that amount includes an increase in direct spending of $9.8 billion and an increase in offsetting receipts, which are recorded in the budget as decreases in direct spending, of $3.3 billion. The estimated budgetary effect of S. 2238 is shown in Table 1. The costs of the legislation fall within budget functions 370 (commerce and housing credit) and 950 (undistributed offsetting receipts). CBO expects that providers would apply for funding in 2025 and 2026, and that the FCC would reimburse most providers over the 2027-2030 period. In addition, the bill would direct the FCC to auction its inventory of spectrum licenses within the band of frequencies commonly referred to as the “AWS-3 bands.” Using information from a prior AWS-3 auction and an analysis of industry demand, CBO estimates that the reauction of these licenses would generate $3.3 billion in offsetting receipts over the 20252034 period. In total, CBO estimates that implementing S. 2238 would cost $2 million over the 2025-2029 period; any related spending would be subject to the availability of appropriated funds. Based on the cost of similar activities, CBO estimates that it would cost the NTIA, in consultation with other federal agencies, $2 million to implement the requirements in S. 2238.