House Commerce Committee Republicans to NTIA: By Allowing States to Regulate Broadband Rates, NTIA is Ignoring Congressional Intent

We write in response to your testimony at the December 5, 2023, hearing held by the House Subcommittee on Communications and Technology titled, “Oversight of the National Telecommunications and Information Administration (NTIA).” Throughout the hearing, you provided troubling answers that suggested that the NTIA would permit rate regulation by states participating in the Broadband, Equity, Access, and Deployment (BEAD) Program. These answers are concerning, as they suggest that the NTIA is administering this program in violation of the law. The Infrastructure Investment and Jobs Act (IIJA), which created the BEAD Program, explicitly prohibits the Assistant Secretary of Commerce for Communications and Information and the NTIA from “regulat[ing] the rates charged for broadband service.” Based on your testimony, it appears that you are planning to ignore this Congressional direction. Although your testimony reaffirmed that NTIA itself would not engage in rate regulation, you did not foreclose approval of state plans that regulated rates of broadband service. Indeed, when directly asked, “Will NTIA permit a state to rate regulate, yes or no,” you did not provide a yes or no answer and instead stated that NTIA would give states flexibility on how to approach this issue. This “flexibility” to pursue rate regulation is not only concerning, but is strictly prohibited. We ask that you confirm whether NTIA will approve state plans that include rate regulation, as defined in this letter. If NTIA plans to approve these plans, we also ask that you provide an explanation of why you and the Biden Administration are ignoring the IIJA. We look forward to your response no later than January 12, 2024.