The Big, Beautiful… Broadband Bill?

 You’re reading the Benton Institute for Broadband & Society’s Weekly Digest, a recap of the biggest (or most overlooked) broadband stories of the week. The digest is delivered via e-mail each Friday.

Round-Up for the Week of July 7-11, 2025

On Independence Day, President Donald Trump signed into law “The One, Big Beautiful Bill,” revising the federal budget to fit the priorities of his administration. The legislation has made headlines for redirecting funding to military operations and U.S. Immigration and Customs Enforcement (ICE), and away from Medicaid and other social programs. Due to the expansive nature of the budget reconciliation, changes to the federal landscape will impact connectivity in a number of ways, including wireless/mobile services, fiber-broadband infrastructure deployment, and program eligibility.

FCC Spectrum Auction Authority is Back

The budget reconciliation package officially reinstates the Federal Communications Commission’s spectrum auction authority through September 2034. The legislation requires the FCC, in partnership with the National Telecommunications and Information Administration (NTIA), to free up and auction by 2034 at least 800 megahertz (MHz) of commercial or federal spectrum in the “covered band”––frequencies between 1.3 gigahertz (GHz) and 10.5 GHz––excluding the band of frequencies between 3.1 GHz and 3.45 GHz and the band of frequencies between 7.4 and 8.4 GHz.  

The law authorizes the FCC to grant licenses through auctions for at least 300 MHz by July 4, 2027, for at least 100 MHz at a time in the 3.98-4.2 GHz bands.

The Assistant Secretary of Commerce for Information and Communications (that is, the head of the NTIA), which may soon be nominee Arielle Roth if confirmed––is tasked with identifying 500 MHz of frequencies in the covered band for reallocation to non-Federal use, shared Federal and non-Federal use, or a combination thereof, for full-power commercial licensed use cases. The 500 MHz are in addition to the 300 MHz of frequencies the FCC is tasked with auctioning above. The Assistant Secretary/NTIA Administrator must identify at least 200 MHz of frequencies in the next two years, and the remaining amount within the next four years.

The Assistant Secretary will also assess net revenue potential, relocation or sharing costs, as applicable, and the feasibility of reallocating specific frequencies, with the goal of identifying the best approach to maximize net proceeds of systems of competitive bidding for the U.S. Treasury. Then the FCC will grant licenses for these reallocated frequencies through auction/competitive bidding. By July 4, 2029, the FCC must complete one or more auctions for at least 200 MHz. And by July 4, 2033, the FCC must conduct an auction for the remaining spectrum.

One limitation: the President, up until 60 days before a scheduled auction, reserves the right to pull any spectrum from auction, if “necessary to protect the national security of the United States.”

The new law appropriates $50 million to the Department of Commerce for additional support for the Assistant Secretary to conduct a spectrum analysis of the frequency bands between 2.7 and 2.9 GHz, as well as 4.4-4.9 GHz and 7.25-7.4 GHz. This funding will also be used to publish a biennial report on the value of all spectrum used by Federal entities that assesses the value of bands of frequencies in increments of 100 MHz or less. This funding will remain available through September 30, 2034.

Wireless industry executives lauded the decision to reinstate the FCC’s spectrum auction authority and potentially open up new avenues for 5G expansion by wireless internet service providers (WISPs). CTIA President Ajit Pai, former Chairman of the FCC during President Trump’s first term, said that the new spectrum auctions will “encourage next-generation wireless technologies, accelerate wireless deployment for the benefit of all American consumers, and secure our global technology leadership.”

Other groups expressed concern that opening up the 6GHz band (also known as the 6 GHz Wi-Fi band) and Citizens Broadband Radio Service (a 150 MHz wide broadcast band of the 3.5 GHz band) may create problems¹. According to public advocacy organization Public Knowledge, future spectrum auctions risk worsening home Wi-Fi by calling for the FCC to auction off an additional 300 MHz of non-federal spectrum between 1.3 GHz and 10.5 GHz, which contains virtually all unlicensed spectrum used for Wi-Fi.

The 6 GHz band is currently set aside for Wi-Fi 6E, Wi-Fi 7, and future Wi-Fi upgrades. Commercialization of these bands may deter future developments in our unlicensed wireless internet networks and Wi-Fi usage. Small internet service providers expressed concern, as they use these bands to connect rural households. NTCA said,

Cuts to Federal Programs Affect Lifeline Eligibility

The One Big, Beautiful Bill makes cuts to a number of federal support programs, cuts that may affect low-income consumers’ eligibility for Lifeline, the federal broadband subsidy program run by the Universal Service Administrative Company (USAC).

Consumers who are eligible for Lifeline can get up to $9.25 off the cost of phone, internet, or bundled services through the program. Currently, you can qualify for Lifeline if you (or someone in your household) participate in one of these other programs, among other eligibility options:

• Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps;
• Medicaid;
• Supplemental Security Income (SSI);
• Federal Public Housing Assistance (FPHA); or
• Veterans Pension and Survivors Benefit.

SNAP

The Supplemental Nutrition Assistance Program (SNAP) provides food benefits to low-income families to supplement their grocery budget so they can afford the nutritious food essential to health and well-being. The One Big Beautiful Bill includes significant cuts to SNAP, estimated to be around $186 billion over ten years. 

SNAP’s Excess Shelter Deduction allows eligible households to deduct shelter costs exceeding 50 percent of their income, thus reducing the financial burden of housing costs for low-income individuals and families. The law also introduces stricter work requirements for SNAP recipients. All-in-all, these changes could mean 22.3 million households could lose SNAP benefits. The changes could also reduce SNAP benefits for millions of Americans and potentially increase food insecurity.

The One Big Beautiful Bill also includes an amendment to what expenses qualify for the Excess Shelter Deduction. Under the new law, any service fee associated with internet connection shall not be used in computing the excess shelter expense deduction, which could alter the benefit amount for many households.

The change may also make internet service even less affordable for low-income households who are now receiving less support.

Medicaid

Medicaid is a health care insurance program for families and individuals with low income and limited resources, funded by both the federal and state governments (but mostly federal).

The One Big Beautiful Bill will significantly reduce the number of U.S. residents who qualify for support, potentially causing over 10 million more people to be without insurance by 2034, according to the Congressional Budget Office. Medicaid eligibility requirements will be more stringent and the new law limits states’ ability to collect provider taxes to fund the program, among other strategies. 

For both SNAP and Medicaid, the new law adjusts eligibility to cover only U.S. citizens and those with certain “lawfully admitted” immigration statuses, leaving many undocumented U.S. residents without benefits.

What this means for Lifeline: For all those who will no longer receive Medicaid benefits, qualifying for Lifeline will be that much harder.

What this means for the BEAD Program: The revisions to the BEAD Program this year moved the qualifications for low-cost broadband service under BEAD-funded networks to the Lifeline qualification system, instead of the FCC’s now-closed Affordable Connectivity Program (ACP). So, for households affected by the new law’s cuts to social supports, and risks to their Lifeline qualification, it may be even more difficult for them to qualify for the low-cost offerings provided by new BEAD-funded networks.

Pell Grants

Federal Pell Grants are educational funding awards granted to students who display exceptional financial need. Additionally, students may be eligible to receive a Federal Pell Grant if they are confined or incarcerated and enrolled in an approved Prison Education Program (PEP). For incarcerated individuals, who face an extreme digital divide, Prison Education Programs are a pathway to obtaining digital skills, employment, or further educational opportunities upon release, reducing recidivism.

The new law limits access to education and training opportunities by tightening Pell eligibility.

The new law also allows students to receive Workforce Pell Grants that are specifically geared toward shorter-term (8-15 weeks) workforce programs, offered by an eligible institution. These programs must “provide an education aligned with the requirements of high-skill, high-wage…or in-demand industry sectors or occupations,” and meet the hiring requirements of potential employers or allow the student to pursue a post-secondary credential, preparing them for employment or for a higher education degree.

The changes may open up further pathways for digital skills/technical training opportunities for qualifying Pell grantees.

ISPs Incentivized by Tax Cuts

The One Big, Beautiful Bill includes a myriad of provisions meant to incentivize U.S.-based manufacturing and boost domestic investments. For ISPs, this means deductions on the costs of broadband infrastructure buildout equipment and custom network technology.

One provision promotes permanent investments in community development, primarily “opportunity zones” that include low-income communities. ISPs building in rural and low-income areas may be able to offset the costs of new broadband infrastructure buildouts to some degree. The tax credits included in the law ensure the buildout of privatized broadband infrastructure.

A number of fiber broadband providers have expressed support for the law as a result. AT&T pledged to accelerate fiber deployment to one million locations annually, starting in 2026.

“The One Big Beautiful Bill Act will spur investment, maintain U.S. leadership in innovation, and create economic opportunity nationwide,” said AT&T. The company also expressed its support for the FCC’s renewed spectrum auction authority, saying, “Paired with the tax provisions in the [law], this legislation paves the way for the stated goals laid out by FCC Chairman Brendan Carr: unleashing high-speed infrastructure builds and restoring America’s global lead in wireless technology through smart policy.”

The Fiber Broadband Association’s Gary Bolton assessed the law’s tax provisions and ISPs’ projections on how the law will boost investment: “While the fiber broadband industry is in the midst of the largest CapEx investment cycle in history, Congress and the Trump Administration have injected a significant shot of adrenaline into the economy with the implementation of tax policy that will result in a step function uplift in fiber broadband deployment and investment.”

Looking Ahead

The One Big, Beautiful Bill may incentivize internet service providers to build in rural areas, but it also may make it harder for low-income households to qualify for affordable service options. The law will open up spectrum to wireless companies who want to expand or improve their networks, but could potentially hamper future developments in Wi-Fi. And it boosts workforce development opportunities, potentially opening up opportunities in the broadband industry for workers, if they are able to qualify for Pell funding.

Notes

1. The CBRS band provides open access to spectrum, facilitating a variety of innovative use cases to develop since its inception. For example, many anchor institutions and providers use unlicensed Wi-Fi and shared spectrum bands (like CBRS) to manage and operate broadband networks that help connect students and library patrons off campus—often for free or at a low cost.

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