The Federal Communications Commission: Structure, Operations, and Budget
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The Federal Communications Commission:
May May3, 20226, 2024
Structure, Operations, and Budget
Patricia Moloney Figliola
The Federal Communications Commission (FCC) is an independent federal agency established The Federal Communications Commission (FCC) is an independent federal agency established
Specialist in Internet and Specialist in Internet and
by the Communications Act of 1934 (1934 Act, or “Communications Act”). The agency is by the Communications Act of 1934 (1934 Act, or “Communications Act”). The agency is
Telecommunications Telecommunications
charged with regulating interstate and international communications by radio, television, wire, charged with regulating interstate and international communications by radio, television, wire,
Policy Policy
satellite, and cable. The mission of the FCC is to make available for all people of the United satellite, and cable. The mission of the FCC is to make available for all people of the United
States, “without discrimination on the basis of race, color, religion, national origin, or sex, a States, “without discrimination on the basis of race, color, religion, national origin, or sex, a
rapid, efficient, Nationwide, and worldwide wire and radio communication service with adequate rapid, efficient, Nationwide, and worldwide wire and radio communication service with adequate
facilities at reasonable charges.” facilities at reasonable charges.”
The FCC operates under a public interest mandate first laid out in the 1927 Radio Act (P.L. 632, 69th Congress), but how this The FCC operates under a public interest mandate first laid out in the 1927 Radio Act (P.L. 632, 69th Congress), but how this
mandate is applied depends on how “the public interest” is interpreted. Some regulators seek to protect and benefit the public mandate is applied depends on how “the public interest” is interpreted. Some regulators seek to protect and benefit the public
at large through regulation, while others seek to achieve the same goals through the promotion of market efficiency. at large through regulation, while others seek to achieve the same goals through the promotion of market efficiency.
Additionally, Congress granted the FCC wide latitude and flexibility to revise its interpretation of the public interest standard Additionally, Congress granted the FCC wide latitude and flexibility to revise its interpretation of the public interest standard
to reflect changing circumstances and the agency has not defined it in more concrete terms. These circumstances, paired with to reflect changing circumstances and the agency has not defined it in more concrete terms. These circumstances, paired with
changes in FCC leadership, have led to significant changes over time in how the FCC regulates the broadcast and changes in FCC leadership, have led to significant changes over time in how the FCC regulates the broadcast and
telecommunications industries. telecommunications industries.
The FCC is directed by five commissioners appointed by the President and confirmed by the Senate for five-year terms. The The FCC is directed by five commissioners appointed by the President and confirmed by the Senate for five-year terms. The
President designates one of the commissioners as chairperson. President designates one of the commissioners as chairperson.ThreeNo more than three commissioners may be members of the same political commissioners may be members of the same political
party of the President party and none may have a financial interest in any commission-related business. The current Commission is and none may have a financial interest in any commission-related business. The current Commission is
composed of Chairwoman Jessica Rosenworcel, Commissioner Brendan Carr, Commissioner Geoffrey Starks, composed of Chairwoman Jessica Rosenworcel, Commissioner Brendan Carr, Commissioner Geoffrey Starks,and
Commissioner Nathan Simington. President Joe Biden has nominated Gigi Sohn as the third Democratic member, but her
nomination has not been brought before the Senate for a voteCommissioner Nathan Simington, and Commissioner Anna Gomez. .
The day-to-day functions of the FCC are carried out by 7 bureaus and The day-to-day functions of the FCC are carried out by 7 bureaus and1110 offices. The offices. The current basic structure of the FCC was
established in 2002 as part of the agency’s effort to better reflect the industries it regulates. The seventh bureau, the Public
Safety and Homeland Security Bureau, was established in 2006. The bureaus process applications for licenses and other bureaus process applications for licenses and other
filings, manage nonfederal spectrum, analyze complaints, conduct investigations, develop and implement regulatory filings, manage nonfederal spectrum, analyze complaints, conduct investigations, develop and implement regulatory
programs, and participate in hearings, among other things. The offices provide support services. Bureaus and offices often programs, and participate in hearings, among other things. The offices provide support services. Bureaus and offices often
collaborate when addressing FCC issues. collaborate when addressing FCC issues.
Beginning in the 110th Congress, the FCC has been funded through the House and Senate Financial Services and General Beginning in the 110th Congress, the FCC has been funded through the House and Senate Financial Services and General
Government Government(FSGG) appropriations bill as a single line item. Previously, it was funded through what is now the Commerce, appropriations bill as a single line item. Previously, it was funded through what is now the Commerce,
Justice, Science appropriations bill, also as a single line item. Justice, Science appropriations bill, also as a single line item.Since 2009 the FCC’s budget has been derived from regulatory
fees collected by the agency rather than through a direct appropriationThe FCC’s funding is determined by appropriations language but, since 2009, financed 100% by regulatory fees expected to be collected by the agency. The fees, often referred to as “Section (9) fees,” are . The fees, often referred to as “Section (9) fees,” are
collected from license holders and certain other entities. The FCC is authorized to review the regulatory fees each year and collected from license holders and certain other entities. The FCC is authorized to review the regulatory fees each year and
adjust them to reflect changes in its appropriation from year to year. Most years, appropriations language prohibits the use by adjust them to reflect changes in its appropriation from year to year. Most years, appropriations language prohibits the use by
the commission of any excess collections received in the current fiscal year or any prior years. the commission of any excess collections received in the current fiscal year or any prior years.
For ForFY2023FY2025, the FCC requested a budget authority of $, the FCC requested a budget authority of $390,192448,075,000 from regulatory fee offsetting collections. This request ,000 from regulatory fee offsetting collections. This request
represents an increase of $represents an increase of $16,192,000 (4.3%) from the FY2022 annualized Continuing Resolution level of $374,000,000. Of
this amount, the FCC requested $132,23157,883,000, or 14.8%, from the Further Consolidated Appropriations Act, 2024 (FCAA, 2024; P.L. 118-47) level of $390,192,000. The FCC also requested $139,000,000 in budget authority for the ,000 in budget authority for the spectrum auctions Spectrum Auctions program. This request represents program. This request represents
a decrease of $2,264,000 (1.7%) from the FY2022 annualized CR level of $134,495an increase of $6,769,000 or 5.1 percent from the FCAA, 2024, level of $132,231,000. As ,000. As of December 31, 2023, the Commission’s of January 31, 2022, the FCC’s
spectrum auctions program spectrum auctions programhashad generated over $233 generated over $233.5 billion for government use; at the same time, the total cost of the billion for government use; at the same time, the total cost of the
spectrum auctions program has been less than $2.auctions program has been less than $2.35 billion billion (1%) of the total auctions’ revenue.
, or 1.1% of the auctions’ total revenue. The FCC’s spectrum auction authority expired on March 9, 2023. Unless Congress reinstates the FCC’s authority to conduct auctions, the agency cannot generate or collect auction revenues. Congressional Research Service Congressional Research Service
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Contents
Introduction ..................................................................................................................................... 4
FCC Leadership ........................................................................................................................ 5
FCC Structure............................................................................................................................ 5
FCC Strategic Plan .................................................................................................................... 7
FCC Operations: Budget, Authorization, and Reporting to Congress ............................................. 9
FCCFY2023FY2025 Budget ................................................................................................................. 9
FCC Authorization .................................................................................................................. 10
FCC Reporting to Congress .................................................................................................... 10
Activity in the117th118th Congress ........................................................................................................ 11 10
Figures
Figure 1. FCC FY2012-FY2021FY2024 Appropriated Budget Authority, FY2022FY2024 Budget
Estimate, andFY2023FY2025 Budget Request ........................................................................................ 9 10
Tables Table 1. Legislation to Extend the Affordable Connectivity Program .......................................... 12
Contacts
Author Information ......................................................................................................................... 11 12
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The Federal Communications Commission: Structure, Operations, and Budget
Introduction
The Federal Communications Commission (FCC) is an independent federal agency, with its five The Federal Communications Commission (FCC) is an independent federal agency, with its five
members appointed by the President, subject to confirmation by the Senate. It was established by members appointed by the President, subject to confirmation by the Senate. It was established by
the Communications Act of 1934 (1934 Act, or “Communications Act”)1 and is charged with the Communications Act of 1934 (1934 Act, or “Communications Act”)1 and is charged with
regulating interstate and international communications by radio, television, wire, satellite, and regulating interstate and international communications by radio, television, wire, satellite, and
cable.2 The mission of the FCC is to ensure that the American people have available, “without cable.2 The mission of the FCC is to ensure that the American people have available, “without
discrimination on the basis of race, color, religion, national origin, or sex, a rapid, efficient, discrimination on the basis of race, color, religion, national origin, or sex, a rapid, efficient,
Nationwide, and worldwide wire and radio communication service with adequate facilities at Nationwide, and worldwide wire and radio communication service with adequate facilities at
reasonable charges.”3 reasonable charges.”3
The 1934 Act is divided into titles and sections that describe various powers and concerns of the The 1934 Act is divided into titles and sections that describe various powers and concerns of the
commission.4 commission.4
• Title I—FCC Administration and Powers. The 1934 Act originally called for a Title I—FCC Administration and Powers. The 1934 Act originally called for a
commission consisting of seven members, but that number was reduced to five in commission consisting of seven members, but that number was reduced to five in
1983. Commissioners are appointed by the President and approved by the Senate 1983. Commissioners are appointed by the President and approved by the Senate
to serve five-year terms; the President designates one member to serve as to serve five-year terms; the President designates one member to serve as
chairman. chairman.
• Title II—Common carrier regulation, primarily telephone regulation, including Title II—Common carrier regulation, primarily telephone regulation, including
circuit-switched telephone services offered by cable companies. Common circuit-switched telephone services offered by cable companies. Common
carriers are communication companies that provide facilities for transmission but carriers are communication companies that provide facilities for transmission but
do not originate messages, such as telephone and microwave providers. The 1934 do not originate messages, such as telephone and microwave providers. The 1934
Act limits FCC regulation to interstate and international common carriers, Act limits FCC regulation to interstate and international common carriers,
although a joint federal-state board coordinates regulation between the FCC and although a joint federal-state board coordinates regulation between the FCC and
state regulatory commissions. state regulatory commissions.
• Title III—Broadcast station requirements. Much existing broadcast regulation Title III—Broadcast station requirements. Much existing broadcast regulation
was established prior to 1934 by the Federal Radio Commission, and most was established prior to 1934 by the Federal Radio Commission, and most
provisions of the Radio Act of 1927 were subsumed into Title III of the 1934 Act. provisions of the Radio Act of 1927 were subsumed into Title III of the 1934 Act.
• Title IV—Procedural and administrative provisions, such as hearings, joint Title IV—Procedural and administrative provisions, such as hearings, joint
boards, judicial review of the FCC’s orders, petitions, and inquiries. boards, judicial review of the FCC’s orders, petitions, and inquiries.
• Title V—Penal provisions and forfeitures, such as violations of rules and Title V—Penal provisions and forfeitures, such as violations of rules and
regulations. regulations.
• Title VI—Cable communications, such as the use of cable channels and cable Title VI—Cable communications, such as the use of cable channels and cable
ownership restrictions, franchising, and video programming services provided by ownership restrictions, franchising, and video programming services provided by
telephone companies. telephone companies.
• Title VII—Miscellaneous provisions and powers, such as war powers of the Title VII—Miscellaneous provisions and powers, such as war powers of the
President, closed captioning of public service announcements, and President, closed captioning of public service announcements, and
telecommunications development fund. telecommunications development fund.
1 The Communications Act of 1934, 47 U.S.C. §151 et seq., has been amended numerous times, most significantly in 1 The Communications Act of 1934, 47 U.S.C. §151 et seq., has been amended numerous times, most significantly in
the past 25 years by the Telecommunications Act of 1996, P.L. 104-104, 110 Stat. 56 (1996). References in this report the past 25 years by the Telecommunications Act of 1996, P.L. 104-104, 110 Stat. 56 (1996). References in this report
are to the 1934 Act, as amended, unless indicated. are to the 1934 Act, as amended, unless indicated.
2 See “About the FCC,” 2 See “About the FCC,”at http://www.fcc.gov/aboutus.html. http://www.fcc.gov/aboutus.html.
3 47 U.S.C. §151. 3 47 U.S.C. §151.
4 When Congress established the FCC in 1934, it merged responsibilities previously assigned to the Federal Radio 4 When Congress established the FCC in 1934, it merged responsibilities previously assigned to the Federal Radio
Commission, the Interstate Commerce Commission, and the Postmaster General into a single agency, divided into three Commission, the Interstate Commerce Commission, and the Postmaster General into a single agency, divided into three
bureaus, Broadcast, Telegraph, and Telephone. bureaus, Broadcast, Telegraph, and Telephone.
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FCC Leadership
The FCC is directed by five commissioners appointed by the President and confirmed by the The FCC is directed by five commissioners appointed by the President and confirmed by the
Senate for five-year terms. The President designates one of the commissioners as chairperson. Senate for five-year terms. The President designates one of the commissioners as chairperson.
ThreeNo more than three commissioners may be members of the same political party commissioners may be members of the same political party of the President and none may and none may
have a financial interest in any commission-related business. have a financial interest in any commission-related business.
• Jessica Rosenworcel, Chair (sworn in for a second term on December 7, 2021, Jessica Rosenworcel, Chair (sworn in for a second term on December 7, 2021,
for a term to expire on July 1, 2025); for a term to expire on July 1, 2025);
• Brendan Carr (sworn in on August 11, 2017); Brendan Carr (sworn in on August 11, 2017);
• Geoffrey Starks (sworn in on January 30, 2019); Geoffrey Starks (sworn in on January 30, 2019); and
• Nathan Simington (sworn in on December 8, 2020) Nathan Simington (sworn in on December 8, 2020).
President Joe Biden has nominated Gigi Sohn as the third Democratic member, but her
nomination has not been brought before the Senate for a vote; and • Anna Gomez (sworn in on September 25, 2023). .
FCC Structure
The day-to-day functions of the FCC are carried out by 7 bureaus and The day-to-day functions of the FCC are carried out by 7 bureaus and1110 offices. The current offices. The current
basic structure of the FCC was established in 2002 as part of the agency’s effort to better reflect basic structure of the FCC was established in 2002 as part of the agency’s effort to better reflect
the industries it regulates. The the industries it regulates. Theseventhlatest bureau, the bureau, the Public Safety and Homeland SecuritySpace Bureau, Bureau,
was established in was established in2006, largely in response to Hurricane KatrinaApril 2, 2023. .
The bureaus process applications for licenses and other filings, analyze complaints, conduct The bureaus process applications for licenses and other filings, analyze complaints, conduct
investigations, develop and implement regulatory programs,5 and participate in hearings, among investigations, develop and implement regulatory programs,5 and participate in hearings, among
other things. The offices provide support services. Bureaus and offices often collaborate when other things. The offices provide support services. Bureaus and offices often collaborate when
addressing FCC issues.6 The bureaus hold the following responsibilities:addressing FCC issues.6 The bureaus hold the following responsibilities:7
• Consumer and Governmental Affairs Bureau—Develops and implements Consumer and Governmental Affairs Bureau—Develops and implements
consumer policies, including disability access and policies affecting Tribal consumer policies, including disability access and policies affecting Tribal
nations. The bureau serves as the public face of the commission through outreach nations. The bureau serves as the public face of the commission through outreach
and education, as well as responding to consumer inquiries and informal and education, as well as responding to consumer inquiries and informal
complaints. The bureau also maintains collaborative partnerships with state, complaints. The bureau also maintains collaborative partnerships with state,
local, and tribal governments in such critical areas as emergency preparedness local, and tribal governments in such critical areas as emergency preparedness
and implementation of new technologies. In addition, the Bureau’s Disability and implementation of new technologies. In addition, the Bureau’s Disability
Rights Office provides expert policy and compliance advice on accessibility with Rights Office provides expert policy and compliance advice on accessibility with
respect to various forms of communications for persons with disabilities. respect to various forms of communications for persons with disabilities.
Enforcement Bureau—Enforces the Communications Act and the FCC’s rules. It
protects consumers, ensures efficient use of spectrum, furthers public safety,
promotes competition, resolves intercarrier disputes, and protects the integrity of
FCC programs and activities from fraud, waste, and abuse.
International Bureau—Administers the FCC’s international telecommunications
and satellite programs and policies, • Wireless Telecommunications Bureau—Responsible for wireless
telecommunications programs and policies in the United States and its territories, including licensing and regulatory functions.8 Wireless communications services include cellular, paging, personal communications, mobile broadband, and other radio services used by businesses and private citizens.
including licensing and regulatory functions.
The bureau promotes pro-competitive policies abroad, coordinating the FCC’s
global spectrum activities and advocating U.S. interests in international
5 For information about the FCC rulemaking process, see https://www.fcc.gov/general/fcc-rulemaking. Detailed 5 For information about the FCC rulemaking process, see https://www.fcc.gov/general/fcc-rulemaking. Detailed
information about the rulemaking process at federal regulatory agencies can be found in CRS In Focus IF10003, information about the rulemaking process at federal regulatory agencies can be found in CRS In Focus IF10003, An
Overview of Federal Regulations and the Rulemaking Process, by Maeve P. Carey, and CRS Report RL32240, , by Maeve P. Carey, and CRS Report RL32240, The
Federal Rulemaking Process: An Overview, coordinated by Maeve P. Carey. , coordinated by Maeve P. Carey.
6 6 Federal Communications Commission (FCC), “FCC Fact Sheet,FCC Fact Sheet,” http://www.fcc.gov/cgb/consumerfacts/ http://www.fcc.gov/cgb/consumerfacts/aboutfcc.html. 7 FCC, “Offices & Bureaus,” webpage, undated, https://www.fcc.gov/offices-bureaus. 8 Except those involving satellite communications broadcasting, including licensing, enforcement, and regulatory functions. These functions are handled by the International Bureauaboutfcc.html. .
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communications and competition. The bureau works to promote high-quality,
reliable, interconnected, and interoperable communications infrastructure on a
global scale.
Media Bureau—Recommends, develops, and administers the policy and
licensing programs relating to electronic media, including broadcast, cable, and
satellite television in the United States and its territories.
• Media Bureau—Recommends, develops, and administers the policy and
licensing programs relating to electronic media, including broadcast, cable, and satellite television in the United States and its territories.
• Enforcement Bureau—Enforces the Communications Act and the FCC’s rules. It
protects consumers, ensures efficient use of spectrum, furthers public safety, promotes competition, resolves intercarrier disputes, and protects the integrity of FCC programs and activities from fraud, waste, and abuse.
• Wireline Competition Bureau—Develops, recommends, and implements policies
and programs for wireline telecommunications, including fixed (as opposed to mobile) broadband and telephone landlines, striving to promote the widespread development and availability of these services. The bureau has primary responsibility for the Universal Service Fund which helps connect all Americans to communications networks.
• Public Safety and Homeland Security Bureau—Develops and implements Public Safety and Homeland Security Bureau—Develops and implements
policies and programs to strengthen public safety communications, homeland policies and programs to strengthen public safety communications, homeland
security, national security, emergency management and preparedness, disaster security, national security, emergency management and preparedness, disaster
management, and network reliability. These efforts include rulemaking management, and network reliability. These efforts include rulemaking
proceedings that promote more efficient use of public safety spectrum, improve proceedings that promote more efficient use of public safety spectrum, improve
public alerting mechanisms, enhance the nation’s 911 emergency calling system, public alerting mechanisms, enhance the nation’s 911 emergency calling system,
and establish frameworks for communications prioritization during crisis. The and establish frameworks for communications prioritization during crisis. The
bureau also maintains 24/7 operations capability and promotes Commission bureau also maintains 24/7 operations capability and promotes Commission
preparedness to assist the public, first responders, the communications industry, preparedness to assist the public, first responders, the communications industry,
and all levels of government in responding to emergencies and major disasters and all levels of government in responding to emergencies and major disasters
where reliable public safety communications are essential. where reliable public safety communications are essential.
Wireless Telecommunications Bureau—Responsible for wireless
telecommunications programs and policies in the United States and its territories,
including licensing and regulatory functions.7 Wireless communications services
include cellular, paging, personal communications, mobile broadband, and other
radio services used by businesses and private citizens.
Wireline Competition Bureau—Develops, recommends, and implements policies
and programs for wireline telecommunications, including fixed (as opposed to
mobile) broadband and telephone landlines, striving to promote the widespread
development and availability of these services. The bureau has primary
responsibility for the Universal Service Fund which helps connect all Americans
to communications networks.
The offices hold the following responsibilities:
• Space Bureau—Develops, recommends, and implements policies and programs
for satellite and space-based communications and activities. The Bureau strives to promote a competitive and innovative communications marketplace by leading licensing and regulatory efforts related to satellite and space-based communications while fostering the efficient use of scarce spectrum and orbital resources.
The offices hold the following responsibilities:9
• Inspector General—Conducts and supervises audits and investigations relating to
FCC programs and operations.
• Administrative Law Judges—Composed of one judge (and associated staff) who Administrative Law Judges—Composed of one judge (and associated staff) who
presides over hearings and issues decisions on matters referred by the FCC. presides over hearings and issues decisions on matters referred by the FCC.
Communications Business Opportunities—Promotes competition and innovation
in the provision and ownership of telecommunications services by supporting
opportunities for small businesses as well as women and minority-owned
communications businesses.
Economics and Analytics—Responsible for expanding and deepening the use of
economic analysis into FCC policymaking, for enhancing the development and
use of auctions, and for implementing consistent and effective agency-wide data
practices and policies. The office also manages the FCC’s auctions in support of
and in coordination with the FCC’s bureaus and offices. In January 2019, the
FCC voted along party lines to eliminate the Office of Strategic Planning and
Policy Analysis and replace it with the Office of Economics and Analytics.8
7 Except those involving satellite communications broadcasting, including licensing, enforcement,• Engineering and Technology—Advises the FCC on technical and engineering
matters. This office develops and administers FCC decisions regarding spectrum allocations and grants equipment authorizations and experimental licenses.
• General Counsel—Serves as the FCC’s chief legal advisor and representative. • Managing Director—Administers and manages the operations of the FCC. • Media Relations—Informs the media of FCC decisions and serves as the FCC’s
main point of contact with the media.
• International Affairs—Administers the FCC’s international telecommunications
and satellite programs and policies, including licensing and regulatory and regulatory
functions. These functions are handled by the International Bureau.
8 The Office of Strategic Planning and Policy Analysis had been charged with providing advice to the chairman,functions.
9 FCC, “Offices & Bureaus,” Webpage, undated, https://www.fcc.gov/offices-bureaus.
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Engineering and Technology—Advises the FCC on technical and engineering
matters. This office develops and administers FCC decisions regarding spectrum
allocations and grants equipment authorizations and experimental licenses.
General Counsel—Serves as the FCC’s chief legal advisor and representative.
Inspector General—Conducts and supervises audits and investigations relating to
FCC programs and operations.
• Economics and Analytics—Responsible for expanding and deepening the use of
economic analysis into FCC policymaking, for enhancing the development and use of auctions, and for implementing consistent and effective agency-wide data practices and policies. The office also manages the FCC’s auctions in support of and in coordination with the FCC’s bureaus and offices.
• Legislative Affairs—Serves as the liaison between the FCC and Congress, as Legislative Affairs—Serves as the liaison between the FCC and Congress, as
well as other federal agencies. well as other federal agencies.
Managing Director—Administers and manages the operations of the FCC.
Media Relations—Informs the media of FCC decisions and serves as the FCC’s
main point of contact with the media.
Secretary—Preserves the integrity of FCC records. The office• Communications Business Opportunities—Promotes competition and innovation
in the provision and ownership of telecommunications services by supporting opportunities for small businesses as well as women and minority-owned communications businesses.
• Workplace Diversity—Ensures that FCC provides employment opportunities for
all persons regardless of race, color, sex, national origin, religion, age, disability, or sexual orientation.
The FCC also has a Secretary that preserves the integrity of FCC records. The Secretary oversees the oversees the
receipt and distribution of documents filed by the public through electronic and receipt and distribution of documents filed by the public through electronic and
paper filing paper filingsystems. In addition, the office gives effective systems, and gives legal notice of FCC legal notice of FCC
decisions by publishing them in the Federal Register and decisions by publishing them in the Federal Register and the FCC Record.the FCC Record.
Workplace Diversity—Ensures that FCC provides employment opportunities for
all persons regardless of race, color, sex, national origin, religion, age, disability,
or sexual orientation.
FCC Strategic Plan
The current FCC Strategic Plan covers the five-year period FY2022-2026.The current FCC Strategic Plan covers the five-year period FY2022-2026.910 The plan outlines six The plan outlines six
goals: goals:
• Pursue a “100 Percent” Broadband Policy. The COVID-19 pandemic put a The COVID-19 pandemic put a
spotlight on the serious broadband gaps that exist across the country, including in spotlight on the serious broadband gaps that exist across the country, including in
rural infrastructure, affordability for low-income Americans, and at-home access rural infrastructure, affordability for low-income Americans, and at-home access
for students. This continuing digital divide means millions of Americans do not for students. This continuing digital divide means millions of Americans do not
have meaningful access to essential infrastructure for 21st century success. In have meaningful access to essential infrastructure for 21st century success. In
response to the COVID-19 pandemic and the challenges that many Americans response to the COVID-19 pandemic and the challenges that many Americans
face, the agency should advance access to communications that are essential for face, the agency should advance access to communications that are essential for
Americans to work remotely, learn remotely, receive healthcare, and engage in Americans to work remotely, learn remotely, receive healthcare, and engage in
commerce. To this end, the FCC will pursue policies to help bring affordable, commerce. To this end, the FCC will pursue policies to help bring affordable,
reliable, high-speed broadband to 100% of the country. reliable, high-speed broadband to 100% of the country.
• Promote Diversity, Equity, Inclusion, and Accessibility. The FCC will seek to The FCC will seek to
gain a deeper understanding of how the agency’s rules, policies, and programs gain a deeper understanding of how the agency’s rules, policies, and programs
may promote or inhibit advances in diversity, equity, inclusion, and accessibility. may promote or inhibit advances in diversity, equity, inclusion, and accessibility.
The FCC will pursue focused action and investments to eliminate historical, The FCC will pursue focused action and investments to eliminate historical,
systemic, and structural barriers that perpetuate disadvantaged or underserved systemic, and structural barriers that perpetuate disadvantaged or underserved
individuals and communities. In so doing, the FCC will work to ensure equitable individuals and communities. In so doing, the FCC will work to ensure equitable
and inclusive access and facilitate the ability of underserved individuals and and inclusive access and facilitate the ability of underserved individuals and
communities to leverage and benefit from the wide range of opportunities made communities to leverage and benefit from the wide range of opportunities made
possible by digital technologies, media, communication services, and next-possible by digital technologies, media, communication services, and next-
commissioners, bureaus, and offices; developing strategic plans; identifying agency’s policy objectives; and providing
research, advice, and analysis of advanced, novel, and nontraditional communications issues.
9 Federal Communications Commissiongeneration networks. In addition, the FCC recognizes that it is more effective when its workforce reflects the experience, judgement, and input of individuals
10 FCC, , Strategic Plan 2022-2026, February 2022, https://docs.fcc.gov/public/, February 2022, https://docs.fcc.gov/public/
attachments/DOC-381830A1.pdf. attachments/DOC-381830A1.pdf.
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generation networks. In addition, the FCC recognizes that it is more effective
when its workforce reflects the experience, judgement, and input of individuals
from many different backgrounds. Advancing equity is core to the agency’s from many different backgrounds. Advancing equity is core to the agency’s
management and policymaking processes and will benefit all Americans. management and policymaking processes and will benefit all Americans.
• Empower Consumers. Consumers who are well informed about their rights and Consumers who are well informed about their rights and
what they’re buying are more confident and more likely to participate in the what they’re buying are more confident and more likely to participate in the
digital economy. The FCC will tackle new challenges to consumer rights and digital economy. The FCC will tackle new challenges to consumer rights and
opportunities stemming from the COVID-19 pandemic, plans for post-COVID opportunities stemming from the COVID-19 pandemic, plans for post-COVID
recovery, and digital transitions. The FCC also will pursue effective enforcement recovery, and digital transitions. The FCC also will pursue effective enforcement
and new approaches to protect consumers from unwanted and intrusive and new approaches to protect consumers from unwanted and intrusive
communications, phone-based scams, telephone privacy issues, and other trends communications, phone-based scams, telephone privacy issues, and other trends
that affect consumers. The FCC will work to enhance competition and pursue that affect consumers. The FCC will work to enhance competition and pursue
policies that protect the competitive process to improve consumer choice and policies that protect the competitive process to improve consumer choice and
access to information. The FCC will work to foster a regulatory landscape that access to information. The FCC will work to foster a regulatory landscape that
fosters media competition, diversity, and localism. The FCC also must work to fosters media competition, diversity, and localism. The FCC also must work to
ensure the availability of quality, functionally equivalent communications ensure the availability of quality, functionally equivalent communications
services for persons with disabilities. services for persons with disabilities.
• Enhance Public Safety and National Security. The FCC will pursue policies to The FCC will pursue policies to
promote the availability of secure, reliable, interoperable, redundant, and rapidly promote the availability of secure, reliable, interoperable, redundant, and rapidly
restorable critical communications infrastructure and services. The FCC also will restorable critical communications infrastructure and services. The FCC also will
promote the public’s access to reliable 911 and emergency alerting, and support promote the public’s access to reliable 911 and emergency alerting, and support
public safety’s access to first responder communications. The FCC will work in public safety’s access to first responder communications. The FCC will work in
coordination with federal and state, local, tribal, and territorial government coordination with federal and state, local, tribal, and territorial government
partners and industry stakeholders to support disaster response and to ensure the partners and industry stakeholders to support disaster response and to ensure the
nation’s defense and homeland security. nation’s defense and homeland security.
• Advance America’s Global Competitiveness. The FCC will take action to The FCC will take action to
promote investment and advance the development and deployment of new promote investment and advance the development and deployment of new
communications technologies, such as 5G, that will allow the nation to remain a communications technologies, such as 5G, that will allow the nation to remain a
global leader in an increasingly competitive, international marketplace. The FCC global leader in an increasingly competitive, international marketplace. The FCC
will identify incentives and policies to close security gaps and accelerate will identify incentives and policies to close security gaps and accelerate
trustworthy innovation. The FCC will work with its federal partners to advocate trustworthy innovation. The FCC will work with its federal partners to advocate
for U.S. interests abroad. for U.S. interests abroad.
• Foster Operational Excellence. The FCC should be a model for excellence in The FCC should be a model for excellence in
government by effectively managing its resources, maintaining a commitment to government by effectively managing its resources, maintaining a commitment to
transparent and responsive processes that encourage public involvement and transparent and responsive processes that encourage public involvement and
decisionmaking that best serves the public interest, and encouraging a culture of decisionmaking that best serves the public interest, and encouraging a culture of
collaboration both internally and across government agencies. collaboration both internally and across government agencies.
The FCC has identified performance objectives associated with each strategic goal. Commission The FCC has identified performance objectives associated with each strategic goal. Commission
management annually develops targets and measures related to each performance goal to provide management annually develops targets and measures related to each performance goal to provide
direction toward accomplishing those goals. Targets and measures are published in the FCC’s direction toward accomplishing those goals. Targets and measures are published in the FCC’s
Performance Plan, and submitted with the commission’s annual budget request to Congress. Performance Plan, and submitted with the commission’s annual budget request to Congress.
Results of the commission’s efforts to meet its goals, targets, and measures are found in the Results of the commission’s efforts to meet its goals, targets, and measures are found in the
FCC’s Annual Performance Report published each February. The FCC also issues a Summary of FCC’s Annual Performance Report published each February. The FCC also issues a Summary of
Performance and Financial Results every February, providing a concise, citizen-focused review of Performance and Financial Results every February, providing a concise, citizen-focused review of
the agency’s accomplishments. the agency’s accomplishments.
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The Federal Communications Commission: Structure, Operations, and Budget
FCC Operations: Budget, Authorization, and
Reporting to Congress
Since the 110th Congress, the FCC has been funded through the House and Senate Financial Since the 110th Congress, the FCC has been funded through the House and Senate Financial
Services and General Government Services and General Government(FSGG) appropriations bill as a single line item. Previously, it appropriations bill as a single line item. Previously, it
was funded through what is now the Commerce, Justice, Science appropriations bill, also as a was funded through what is now the Commerce, Justice, Science appropriations bill, also as a
single line item. The FCC’s budgets from FY2012 to single line item. The FCC’s budgets from FY2012 toFY2023FY2025 are shown i are shown in Figure 1.
Since 2009, the FCC’s budget has been derived 100% from regulatory fees collected by the
agency rather than through any direct appropriation.10 The FCC’s funding is determined by appropriations language but, since 2009, financed 100% by regulatory fees expected to be collected by the agency.11
The FCC annually collects and retains The FCC annually collects and retains
regulatory fees to offset costs incurred by the agency and to carry out its functions. The FCC is regulatory fees to offset costs incurred by the agency and to carry out its functions. The FCC is
authorized to review the regulatory fees each year and adjust them to reflect changes in its authorized to review the regulatory fees each year and adjust them to reflect changes in its
appropriation from year to year. The commission originally implemented the Regulatory Fee appropriation from year to year. The commission originally implemented the Regulatory Fee
Collection Program by rulemaking on July 18, 1994.
FCC FY2023 Budget
For FY2023, the FCC requested a budget authority of $390,192,000 from regulatory fee
offsetting collections. This request represents an increase of $16,192,000 (4.3%) from the
FY2022 annualized Continuing Resolution level of $374,000,000. Of this amount, the FCC
requested $132,231,000 in budget authority for the spectrum auctions program. This request
represents a decrease of $2,264,000 (1.7%) from the FY2022 annualized CR level of
$134,495,000. As of January 31, 2022, the FCC’s spectrum auctions program has generated over
$233 billion for government use; at the same time, the total cost of the auctions program has been
less than $2.3 billion (1%) of the total auctions’ revenue.
10Collection Program by rulemaking on July 18, 1994.
Figure 1. FCC FY2012-FY2024 Appropriated Budget Authority, FY2024 Budget
Estimate, and FY2025 Budget Request
(Current Dollars in Millions)
Source: FCC. Notes: For FYs 2016 and 2017, $44 mil ion and $17 mil ion, respectively, represent amounts provided for the necessary expenses associated with moving the FCC headquarters to a new facility to significantly reduce space consumption.
FCC FY2025 Budget For FY2025, the FCC requested a budget authority of $448,075,000 from regulatory fee offsetting collections. This request represents an increase of $57,883,000, or 14.8%, from the Further Consolidated Appropriations Act, 2024 (FCAA, 2024; P.L. 118-47) level of
11 This requirement was included in the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66, 47 U.S.C. §159). This requirement was included in the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66, 47 U.S.C. §159).
The fees, often referred to as “Section (9) fees,” are collected from license holders and certain other entities (e.g., cable The fees, often referred to as “Section (9) fees,” are collected from license holders and certain other entities (e.g., cable
television systems). The regulatory fees do not apply to governmental entities, amateur radio operator licensees, television systems). The regulatory fees do not apply to governmental entities, amateur radio operator licensees,
nonprofit entities, and certain other non-commercial entities. nonprofit entities, and certain other non-commercial entities.
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The Federal Communications Commission: Structure, Operations, and Budget
Figure 1. FCC FY2012-FY2021 Appropriated Budget Authority, FY2022 Budget
Estimate, and FY2023 Budget Request
(Dollars in Millions)
Source: FCC.
Notes: For FYs 2016 and 2017, $44 mil ion and $17 mil ion, respectively, represent amounts provided for the
necessary expenses associated with moving the FCC headquarters to a new facility to significantly reduce space
consumption.
In FY2013, FCC’s appropriated budget authority was reduced by $17 mil ion due to the FY2013 sequestration
order implemented on March 1, 2013, as required by the Budget Control Act of 2011. The total amount shown
for FY2013 in the above graph includes the $17 mil ion sequestered amount.$390,192,000. The FCC also requested $139,000,000 in budget authority for the Spectrum Auctions program. This request represents an increase of $6,769,000 or 5.1 percent from the FCAA, 2024, level of $132,231,000. As of December 31, 2023, the Commission’s spectrum auctions program had generated over $233.5 billion for government use; at the same time, the total cost of the spectrum auctions program has been less than $2.5 billion, or 1.1% of the auctions’ total revenue. The FCC’s spectrum auction authority expired on March 9, 2023. Unless Congress reinstates the FCC’s authority to conduct auctions, the agency cannot generate or collect auction revenues.12
FCC Authorization
Through the Consolidated Appropriations Act, 2018 (P.L. 115-141), the FCC was reauthorized for Through the Consolidated Appropriations Act, 2018 (P.L. 115-141), the FCC was reauthorized for
the first time since 1990 (FCC Authorization Act of 1990, P.L. 101-396). the first time since 1990 (FCC Authorization Act of 1990, P.L. 101-396).
FCC Reporting to Congress
The FCC publishes four periodic reports for Congress. All of these reports are available on the The FCC publishes four periodic reports for Congress. All of these reports are available on the
FCC website, https://www.fcc.gov/about/strategic-plans-budget. FCC website, https://www.fcc.gov/about/strategic-plans-budget.
• Strategic Plan. The five-year Strategic Plan is the framework around which the The five-year Strategic Plan is the framework around which the
FCC develops its yearly Performance Plan and Performance Budget. It is FCC develops its yearly Performance Plan and Performance Budget. It is
developed and submitted in accordance with the Government Performance and developed and submitted in accordance with the Government Performance and
Results Modernization Act of 2010, P.L. 111-352. Results Modernization Act of 2010, P.L. 111-352.
• Performance Budget. The annual Performance Budget includes performance The annual Performance Budget includes performance
targets based on the FCC’s strategic goals and objectives, and serves as the guide targets based on the FCC’s strategic goals and objectives, and serves as the guide
for implementing the Strategic Plan. The Performance Budget becomes part of for implementing the Strategic Plan. The Performance Budget becomes part of
the President’s annual budget request. the President’s annual budget request.
• Agency Financial Report. The annual Agency Financial Report contains The annual Agency Financial Report contains
financial and other information, such as a financial discussion and analysis of the financial and other information, such as a financial discussion and analysis of the
agency’s status, financial statements, and audit reports. agency’s status, financial statements, and audit reports.
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The Federal Communications Commission: Structure, Operations, and Budget
• Annual Performance Report. At the end of the fiscal year, the FCC publishes At the end of the fiscal year, the FCC publishes
an Annual Performance Report that compares the agency’s actual performance an Annual Performance Report that compares the agency’s actual performance
with its targets.with its targets.1113
Activity in the117th118th Congress
One hearingThree hearings related to FCC operations and budget related to FCC operations and budget hashave been held thus far in the been held thus far in the 117th Congress:
“Connecting America: Oversight of the FCC”
March 31, 2022
Committee on Energy and Commerce
Subcommittee on Communications and Technology12
No bills that would affect the operation of the FCC have been introduced in the 117th Congress.
118th Congress • “Oversight of President Biden’s Broadband Takeover” House Committee on Energy and Commerce 12 For additional information on the FCC’s spectrum auction authority, see CRS Report R47258, FCC Spectrum Auction Authority: Background and Proposals for Extension, by Jill C. Gallagher and Patricia Moloney Figliola, and CRS Report R47578, The Federal Communications Commission’s Spectrum Auction Authority: History and Options for Reinstatement, by Patricia Moloney Figliola and Jill C. Gallagher. 13 OMB Circular A-136 allows agencies the option of producing (1) two separate reports, an Agency Financial Report and an Annual Performance Report, or (2) a consolidated Performance and Accountability Report. The same information is provided to Congress in either case. The FCC elected the first option for FY2011. Also, in addition to the reports it submits to Congress, the FCC publishes an annual Summary of Performance and Financial Information, which is a citizen-focused summary of the FCC’s yearly activities. Congressional Research Service 11 The Federal Communications Commission: Structure, Operations, and Budget Subcommittee on Communications and Technology November 30, 2023.14 • FCC Appropriations Senate Committee on Appropriations Subcommittee on Financial Services and General Government September 19, 2023.15 • “Oversight of the Federal Communications Commission” House Committee on Energy and Commerce Subcommittee on Communications and Technology June 21, 2023.16 Three bills that would affect the operation of the FCC have been introduced in the 118th Congress: • Spectrum Coordination Act (H.R. 1341) Introduced on March 3, 2023, and ordered to be reported by the Committee on Energy and Commerce on March 24, 2023. This bill would require periodic updates to the memorandum of understanding that guides federal efforts to coordinate the efficient management and use of the electromagnetic spectrum. It would also require documentation of interagency coordination during spectrum actions. • Spectrum Auction Reauthorization Act of 2023 (H.R. 3565) This bill would reauthorize the FCC’s authority to auction spectrum and would specify the distribution of proceeds from auctions.17 • FCC Legal Enforcement Act (S. 2095) Introduced on June 21, 2023, and referred to the Committee on Commerce, Science, and Transportation This bill would authorize the FCC to enforce its own forfeiture penalties with respect to violations of restrictions on the use of telephone equipment. Additionally, although not aimed at directing how the FCC operates, three bills and one resolution have been introduced in the 118th Congress that would extend the Affordable Connectivity Program,18 which is set to run out of funds in mid-May 2024 (see 14 House Committee on Energy and Commerce, “Chairs Rodgers and Latta Announce FCC Oversight Hearing,” Press Release, November 21, 2023, https://energycommerce.house.gov/posts/chairs-rodgers-and-latta-announce-fcc-oversight-hearing. Hearing video not available. 15 Senate Committee on Appropriations, “Review of the FY 2024 Budget for the Federal Communications Commission,” September 19, 2023 (full hearing video), https://www.appropriations.senate.gov/hearings/review-of-the-fy-2024-budget-for-the-federal-communications-commission. 16 House Committee on Energy and Commerce, ““Oversight of the Federal Communications Commission,” Hearing Memorandum, June 21, 2023, (full hearing video), https://democrats-energycommerce.house.gov/committee-activity/hearings/hearing-on-oversight-of-the-federal-communications-commission-4. 17 For additional information on the FCC’s spectrum auction authority, see CRS Report R47258, FCC Spectrum Auction Authority: Background and Proposals for Extension, by Jill C. Gallagher and Patricia Moloney Figliola, and CRS Report R47578, The Federal Communications Commission’s Spectrum Auction Authority: History and Options for Reinstatement, by Patricia Moloney Figliola and Jill C. Gallagher. 18 For additional information on the FCC’s Affordable Connectivity Program, see CRS In Focus IF12637, The End of the Affordable Connectivity Program: What Next for Consumers?, by Patricia Moloney Figliola. Congressional Research Service 11 link to page 12 The Federal Communications Commission: Structure, Operations, and Budget Table 1). Congressional Research Service 12 The Federal Communications Commission: Structure, Operations, and Budget Table 1. Legislation to Extend the Affordable Connectivity Program 118th Congress Bills Summary Affordable Connectivity Program This bil extends and provides FY2024 funding for the Affordable Extension Act of 2024, S. 3565 and H.R. Connectivity Program, which provides a monthly benefit that allows 6929/H.Res. 1119 eligible low-income households to receive discounted internet service. The program also provides a one-time discount that may be used to purchase a connected device, such as a computer. Both bil s would appropriate to the Affordable Connectivity Fund $7,000,000,000 for FY2024, to remain available until expended. A bil to authorize annual appropriations A bil to authorize annual appropriations for the Affordable for the Affordable Connectivity Program, Connectivity Program, to expand the Universal Service Fund to to expand the Universal Service Fund to support the Affordable Connectivity Program, and for other support the Affordable Connectivity purposes. The ful text of the bil is not yet available through Program, and for other purposes, S. 4208 Congress.gov. Source: CRS
Author Information
Patricia Moloney Figliola Patricia Moloney Figliola
Specialist in Internet and Telecommunications Specialist in Internet and Telecommunications
Policy Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material. copy or otherwise use copyrighted material.
11 OMB Circular A-136 allows agencies the option of producing (1) two separate reports, an Agency Financial Report
and an Annual Performance Report, or (2) a consolidated Performance and Accountability Report. The same
information is provided to Congress in either case. The FCC elected the first option for FY2011. Also, in addition to
the reports it submits to Congress, the FCC publishes an annual Summary of Performance and Financial Information,
which is a citizen-focused summary of the FCC’s yearly activities.
12 https://energycommerce.house.gov/committee-activity/hearings/hearing-on-connecting-america-oversight-of-the-fcc
Senate Committee on Appropriations.
Congressional Research Service
R45699 · VERSION 10 · UPDATED
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Congressional Research Service
R45699 · VERSION 14 · UPDATED
13
May May
Structure, Operations, and Budget
Patricia Moloney Figliola
The Federal Communications Commission (FCC) is an independent federal agency established The Federal Communications Commission (FCC) is an independent federal agency established
Specialist in Internet and Specialist in Internet and
by the Communications Act of 1934 (1934 Act, or “Communications Act”). The agency is by the Communications Act of 1934 (1934 Act, or “Communications Act”). The agency is
Telecommunications Telecommunications
charged with regulating interstate and international communications by radio, television, wire, charged with regulating interstate and international communications by radio, television, wire,
Policy Policy
satellite, and cable. The mission of the FCC is to make available for all people of the United satellite, and cable. The mission of the FCC is to make available for all people of the United
States, “without discrimination on the basis of race, color, religion, national origin, or sex, a States, “without discrimination on the basis of race, color, religion, national origin, or sex, a
rapid, efficient, Nationwide, and worldwide wire and radio communication service with adequate rapid, efficient, Nationwide, and worldwide wire and radio communication service with adequate
facilities at reasonable charges.” facilities at reasonable charges.”
The FCC operates under a public interest mandate first laid out in the 1927 Radio Act (P.L. 632, 69th Congress), but how this The FCC operates under a public interest mandate first laid out in the 1927 Radio Act (P.L. 632, 69th Congress), but how this
mandate is applied depends on how “the public interest” is interpreted. Some regulators seek to protect and benefit the public mandate is applied depends on how “the public interest” is interpreted. Some regulators seek to protect and benefit the public
at large through regulation, while others seek to achieve the same goals through the promotion of market efficiency. at large through regulation, while others seek to achieve the same goals through the promotion of market efficiency.
Additionally, Congress granted the FCC wide latitude and flexibility to revise its interpretation of the public interest standard Additionally, Congress granted the FCC wide latitude and flexibility to revise its interpretation of the public interest standard
to reflect changing circumstances and the agency has not defined it in more concrete terms. These circumstances, paired with to reflect changing circumstances and the agency has not defined it in more concrete terms. These circumstances, paired with
changes in FCC leadership, have led to significant changes over time in how the FCC regulates the broadcast and changes in FCC leadership, have led to significant changes over time in how the FCC regulates the broadcast and
telecommunications industries. telecommunications industries.
The FCC is directed by five commissioners appointed by the President and confirmed by the Senate for five-year terms. The The FCC is directed by five commissioners appointed by the President and confirmed by the Senate for five-year terms. The
President designates one of the commissioners as chairperson. President designates one of the commissioners as chairperson.
composed of Chairwoman Jessica Rosenworcel, Commissioner Brendan Carr, Commissioner Geoffrey Starks, composed of Chairwoman Jessica Rosenworcel, Commissioner Brendan Carr, Commissioner Geoffrey Starks,
The day-to-day functions of the FCC are carried out by 7 bureaus and The day-to-day functions of the FCC are carried out by 7 bureaus and
filings, manage nonfederal spectrum, analyze complaints, conduct investigations, develop and implement regulatory filings, manage nonfederal spectrum, analyze complaints, conduct investigations, develop and implement regulatory
programs, and participate in hearings, among other things. The offices provide support services. Bureaus and offices often programs, and participate in hearings, among other things. The offices provide support services. Bureaus and offices often
collaborate when addressing FCC issues. collaborate when addressing FCC issues.
Beginning in the 110th Congress, the FCC has been funded through the House and Senate Financial Services and General Beginning in the 110th Congress, the FCC has been funded through the House and Senate Financial Services and General
Government Government
Justice, Science appropriations bill, also as a single line item. Justice, Science appropriations bill, also as a single line item.
collected from license holders and certain other entities. The FCC is authorized to review the regulatory fees each year and collected from license holders and certain other entities. The FCC is authorized to review the regulatory fees each year and
adjust them to reflect changes in its appropriation from year to year. Most years, appropriations language prohibits the use by adjust them to reflect changes in its appropriation from year to year. Most years, appropriations language prohibits the use by
the commission of any excess collections received in the current fiscal year or any prior years. the commission of any excess collections received in the current fiscal year or any prior years.
For For
represents an increase of $represents an increase of $
spectrum auctions program spectrum auctions program
spectrum auctions program has been less than $2.auctions program has been less than $2.
, or 1.1% of the auctions’ total revenue. The FCC’s spectrum auction authority expired on March 9, 2023. Unless Congress reinstates the FCC’s authority to conduct auctions, the agency cannot generate or collect auction revenues. Congressional Research Service Congressional Research Service
link to page 4 link to page 5 link to page 5 link to page 7 link to page 9 link to page 9 link to page 10 link to page 10 link to page link to page 4 link to page 5 link to page 5 link to page 7 link to page 9 link to page 9 link to page 10 link to page 10 link to page
Contents
Introduction ..................................................................................................................................... 4
FCC Leadership ........................................................................................................................ 5
FCC Structure............................................................................................................................ 5
FCC Strategic Plan .................................................................................................................... 7
FCC Operations: Budget, Authorization, and Reporting to Congress ............................................. 9
FCC
FCC Authorization .................................................................................................................. 10
FCC Reporting to Congress .................................................................................................... 10
Activity in the
Figures
Figure 1. FCC FY2012-
Estimate, and
Author Information ........................................................................................................................
Congressional Research Service Congressional Research Service
The Federal Communications Commission: Structure, Operations, and Budget
Introduction
The Federal Communications Commission (FCC) is an independent federal agency, with its five The Federal Communications Commission (FCC) is an independent federal agency, with its five
members appointed by the President, subject to confirmation by the Senate. It was established by members appointed by the President, subject to confirmation by the Senate. It was established by
the Communications Act of 1934 (1934 Act, or “Communications Act”)1 and is charged with the Communications Act of 1934 (1934 Act, or “Communications Act”)1 and is charged with
regulating interstate and international communications by radio, television, wire, satellite, and regulating interstate and international communications by radio, television, wire, satellite, and
cable.2 The mission of the FCC is to ensure that the American people have available, “without cable.2 The mission of the FCC is to ensure that the American people have available, “without
discrimination on the basis of race, color, religion, national origin, or sex, a rapid, efficient, discrimination on the basis of race, color, religion, national origin, or sex, a rapid, efficient,
Nationwide, and worldwide wire and radio communication service with adequate facilities at Nationwide, and worldwide wire and radio communication service with adequate facilities at
reasonable charges.”3 reasonable charges.”3
The 1934 Act is divided into titles and sections that describe various powers and concerns of the The 1934 Act is divided into titles and sections that describe various powers and concerns of the
commission.4 commission.4
commission consisting of seven members, but that number was reduced to five in commission consisting of seven members, but that number was reduced to five in
1983. Commissioners are appointed by the President and approved by the Senate 1983. Commissioners are appointed by the President and approved by the Senate
to serve five-year terms; the President designates one member to serve as to serve five-year terms; the President designates one member to serve as
chairman. chairman.
circuit-switched telephone services offered by cable companies. Common circuit-switched telephone services offered by cable companies. Common
carriers are communication companies that provide facilities for transmission but carriers are communication companies that provide facilities for transmission but
do not originate messages, such as telephone and microwave providers. The 1934 do not originate messages, such as telephone and microwave providers. The 1934
Act limits FCC regulation to interstate and international common carriers, Act limits FCC regulation to interstate and international common carriers,
although a joint federal-state board coordinates regulation between the FCC and although a joint federal-state board coordinates regulation between the FCC and
state regulatory commissions. state regulatory commissions.
was established prior to 1934 by the Federal Radio Commission, and most was established prior to 1934 by the Federal Radio Commission, and most
provisions of the Radio Act of 1927 were subsumed into Title III of the 1934 Act. provisions of the Radio Act of 1927 were subsumed into Title III of the 1934 Act.
boards, judicial review of the FCC’s orders, petitions, and inquiries. boards, judicial review of the FCC’s orders, petitions, and inquiries.
regulations. regulations.
ownership restrictions, franchising, and video programming services provided by ownership restrictions, franchising, and video programming services provided by
telephone companies. telephone companies.
President, closed captioning of public service announcements, and President, closed captioning of public service announcements, and
telecommunications development fund. telecommunications development fund.
1 The Communications Act of 1934, 47 U.S.C. §151 et seq., has been amended numerous times, most significantly in 1 The Communications Act of 1934, 47 U.S.C. §151 et seq., has been amended numerous times, most significantly in
the past 25 years by the Telecommunications Act of 1996, P.L. 104-104, 110 Stat. 56 (1996). References in this report the past 25 years by the Telecommunications Act of 1996, P.L. 104-104, 110 Stat. 56 (1996). References in this report
are to the 1934 Act, as amended, unless indicated. are to the 1934 Act, as amended, unless indicated.
2 See “About the FCC,” 2 See “About the FCC,”
3 47 U.S.C. §151. 3 47 U.S.C. §151.
4 When Congress established the FCC in 1934, it merged responsibilities previously assigned to the Federal Radio 4 When Congress established the FCC in 1934, it merged responsibilities previously assigned to the Federal Radio
Commission, the Interstate Commerce Commission, and the Postmaster General into a single agency, divided into three Commission, the Interstate Commerce Commission, and the Postmaster General into a single agency, divided into three
bureaus, Broadcast, Telegraph, and Telephone. bureaus, Broadcast, Telegraph, and Telephone.
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FCC Leadership
The FCC is directed by five commissioners appointed by the President and confirmed by the The FCC is directed by five commissioners appointed by the President and confirmed by the
Senate for five-year terms. The President designates one of the commissioners as chairperson. Senate for five-year terms. The President designates one of the commissioners as chairperson.
have a financial interest in any commission-related business. have a financial interest in any commission-related business.
for a term to expire on July 1, 2025); for a term to expire on July 1, 2025);
FCC Structure
The day-to-day functions of the FCC are carried out by 7 bureaus and The day-to-day functions of the FCC are carried out by 7 bureaus and
basic structure of the FCC was established in 2002 as part of the agency’s effort to better reflect basic structure of the FCC was established in 2002 as part of the agency’s effort to better reflect
the industries it regulates. The the industries it regulates. The
was established in was established in
The bureaus process applications for licenses and other filings, analyze complaints, conduct The bureaus process applications for licenses and other filings, analyze complaints, conduct
investigations, develop and implement regulatory programs,5 and participate in hearings, among investigations, develop and implement regulatory programs,5 and participate in hearings, among
other things. The offices provide support services. Bureaus and offices often collaborate when other things. The offices provide support services. Bureaus and offices often collaborate when
addressing FCC issues.6 The bureaus hold the following responsibilities:addressing FCC issues.6 The bureaus hold the following responsibilities:7
consumer policies, including disability access and policies affecting Tribal consumer policies, including disability access and policies affecting Tribal
nations. The bureau serves as the public face of the commission through outreach nations. The bureau serves as the public face of the commission through outreach
and education, as well as responding to consumer inquiries and informal and education, as well as responding to consumer inquiries and informal
complaints. The bureau also maintains collaborative partnerships with state, complaints. The bureau also maintains collaborative partnerships with state,
local, and tribal governments in such critical areas as emergency preparedness local, and tribal governments in such critical areas as emergency preparedness
and implementation of new technologies. In addition, the Bureau’s Disability and implementation of new technologies. In addition, the Bureau’s Disability
Rights Office provides expert policy and compliance advice on accessibility with Rights Office provides expert policy and compliance advice on accessibility with
respect to various forms of communications for persons with disabilities. respect to various forms of communications for persons with disabilities.
5 For information about the FCC rulemaking process, see https://www.fcc.gov/general/fcc-rulemaking. Detailed 5 For information about the FCC rulemaking process, see https://www.fcc.gov/general/fcc-rulemaking. Detailed
information about the rulemaking process at federal regulatory agencies can be found in CRS In Focus IF10003, information about the rulemaking process at federal regulatory agencies can be found in CRS In Focus IF10003, An
Overview of Federal Regulations and the Rulemaking Process, by Maeve P. Carey, and CRS Report RL32240, , by Maeve P. Carey, and CRS Report RL32240, The
Federal Rulemaking Process: An Overview, coordinated by Maeve P. Carey. , coordinated by Maeve P. Carey.
6 6 Federal Communications Commission (FCC), “FCC Fact Sheet,FCC Fact Sheet,” http://www.fcc.gov/cgb/consumerfacts/ http://www.fcc.gov/cgb/consumerfacts/aboutfcc.html. 7 FCC, “Offices & Bureaus,” webpage, undated, https://www.fcc.gov/offices-bureaus. 8 Except those involving satellite communications broadcasting, including licensing, enforcement, and regulatory functions. These functions are handled by the International Bureau
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The Federal Communications Commission: Structure, Operations, and Budget
policies and programs to strengthen public safety communications, homeland policies and programs to strengthen public safety communications, homeland
security, national security, emergency management and preparedness, disaster security, national security, emergency management and preparedness, disaster
management, and network reliability. These efforts include rulemaking management, and network reliability. These efforts include rulemaking
proceedings that promote more efficient use of public safety spectrum, improve proceedings that promote more efficient use of public safety spectrum, improve
public alerting mechanisms, enhance the nation’s 911 emergency calling system, public alerting mechanisms, enhance the nation’s 911 emergency calling system,
and establish frameworks for communications prioritization during crisis. The and establish frameworks for communications prioritization during crisis. The
bureau also maintains 24/7 operations capability and promotes Commission bureau also maintains 24/7 operations capability and promotes Commission
preparedness to assist the public, first responders, the communications industry, preparedness to assist the public, first responders, the communications industry,
and all levels of government in responding to emergencies and major disasters and all levels of government in responding to emergencies and major disasters
where reliable public safety communications are essential. where reliable public safety communications are essential.
presides over hearings and issues decisions on matters referred by the FCC. presides over hearings and issues decisions on matters referred by the FCC.
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The Federal Communications Commission: Structure, Operations, and Budget
well as other federal agencies. well as other federal agencies.
paper filing paper filing
decisions by publishing them in the Federal Register and decisions by publishing them in the Federal Register and the FCC Record.
The current FCC Strategic Plan covers the five-year period FY2022-2026.The current FCC Strategic Plan covers the five-year period FY2022-2026.
goals: goals:
spotlight on the serious broadband gaps that exist across the country, including in spotlight on the serious broadband gaps that exist across the country, including in
rural infrastructure, affordability for low-income Americans, and at-home access rural infrastructure, affordability for low-income Americans, and at-home access
for students. This continuing digital divide means millions of Americans do not for students. This continuing digital divide means millions of Americans do not
have meaningful access to essential infrastructure for 21st century success. In have meaningful access to essential infrastructure for 21st century success. In
response to the COVID-19 pandemic and the challenges that many Americans response to the COVID-19 pandemic and the challenges that many Americans
face, the agency should advance access to communications that are essential for face, the agency should advance access to communications that are essential for
Americans to work remotely, learn remotely, receive healthcare, and engage in Americans to work remotely, learn remotely, receive healthcare, and engage in
commerce. To this end, the FCC will pursue policies to help bring affordable, commerce. To this end, the FCC will pursue policies to help bring affordable,
reliable, high-speed broadband to 100% of the country. reliable, high-speed broadband to 100% of the country.
gain a deeper understanding of how the agency’s rules, policies, and programs gain a deeper understanding of how the agency’s rules, policies, and programs
may promote or inhibit advances in diversity, equity, inclusion, and accessibility. may promote or inhibit advances in diversity, equity, inclusion, and accessibility.
The FCC will pursue focused action and investments to eliminate historical, The FCC will pursue focused action and investments to eliminate historical,
systemic, and structural barriers that perpetuate disadvantaged or underserved systemic, and structural barriers that perpetuate disadvantaged or underserved
individuals and communities. In so doing, the FCC will work to ensure equitable individuals and communities. In so doing, the FCC will work to ensure equitable
and inclusive access and facilitate the ability of underserved individuals and and inclusive access and facilitate the ability of underserved individuals and
communities to leverage and benefit from the wide range of opportunities made communities to leverage and benefit from the wide range of opportunities made
possible by digital technologies, media, communication services, and next-possible by digital technologies, media, communication services, and next-
attachments/DOC-381830A1.pdf. attachments/DOC-381830A1.pdf.
Congressional Research Service Congressional Research Service
The Federal Communications Commission: Structure, Operations, and Budget
from many different backgrounds. Advancing equity is core to the agency’s from many different backgrounds. Advancing equity is core to the agency’s
management and policymaking processes and will benefit all Americans. management and policymaking processes and will benefit all Americans.
what they’re buying are more confident and more likely to participate in the what they’re buying are more confident and more likely to participate in the
digital economy. The FCC will tackle new challenges to consumer rights and digital economy. The FCC will tackle new challenges to consumer rights and
opportunities stemming from the COVID-19 pandemic, plans for post-COVID opportunities stemming from the COVID-19 pandemic, plans for post-COVID
recovery, and digital transitions. The FCC also will pursue effective enforcement recovery, and digital transitions. The FCC also will pursue effective enforcement
and new approaches to protect consumers from unwanted and intrusive and new approaches to protect consumers from unwanted and intrusive
communications, phone-based scams, telephone privacy issues, and other trends communications, phone-based scams, telephone privacy issues, and other trends
that affect consumers. The FCC will work to enhance competition and pursue that affect consumers. The FCC will work to enhance competition and pursue
policies that protect the competitive process to improve consumer choice and policies that protect the competitive process to improve consumer choice and
access to information. The FCC will work to foster a regulatory landscape that access to information. The FCC will work to foster a regulatory landscape that
fosters media competition, diversity, and localism. The FCC also must work to fosters media competition, diversity, and localism. The FCC also must work to
ensure the availability of quality, functionally equivalent communications ensure the availability of quality, functionally equivalent communications
services for persons with disabilities. services for persons with disabilities.
promote the availability of secure, reliable, interoperable, redundant, and rapidly promote the availability of secure, reliable, interoperable, redundant, and rapidly
restorable critical communications infrastructure and services. The FCC also will restorable critical communications infrastructure and services. The FCC also will
promote the public’s access to reliable 911 and emergency alerting, and support promote the public’s access to reliable 911 and emergency alerting, and support
public safety’s access to first responder communications. The FCC will work in public safety’s access to first responder communications. The FCC will work in
coordination with federal and state, local, tribal, and territorial government coordination with federal and state, local, tribal, and territorial government
partners and industry stakeholders to support disaster response and to ensure the partners and industry stakeholders to support disaster response and to ensure the
nation’s defense and homeland security. nation’s defense and homeland security.
promote investment and advance the development and deployment of new promote investment and advance the development and deployment of new
communications technologies, such as 5G, that will allow the nation to remain a communications technologies, such as 5G, that will allow the nation to remain a
global leader in an increasingly competitive, international marketplace. The FCC global leader in an increasingly competitive, international marketplace. The FCC
will identify incentives and policies to close security gaps and accelerate will identify incentives and policies to close security gaps and accelerate
trustworthy innovation. The FCC will work with its federal partners to advocate trustworthy innovation. The FCC will work with its federal partners to advocate
for U.S. interests abroad. for U.S. interests abroad.
government by effectively managing its resources, maintaining a commitment to government by effectively managing its resources, maintaining a commitment to
transparent and responsive processes that encourage public involvement and transparent and responsive processes that encourage public involvement and
decisionmaking that best serves the public interest, and encouraging a culture of decisionmaking that best serves the public interest, and encouraging a culture of
collaboration both internally and across government agencies. collaboration both internally and across government agencies.
The FCC has identified performance objectives associated with each strategic goal. Commission The FCC has identified performance objectives associated with each strategic goal. Commission
management annually develops targets and measures related to each performance goal to provide management annually develops targets and measures related to each performance goal to provide
direction toward accomplishing those goals. Targets and measures are published in the FCC’s direction toward accomplishing those goals. Targets and measures are published in the FCC’s
Performance Plan, and submitted with the commission’s annual budget request to Congress. Performance Plan, and submitted with the commission’s annual budget request to Congress.
Results of the commission’s efforts to meet its goals, targets, and measures are found in the Results of the commission’s efforts to meet its goals, targets, and measures are found in the
FCC’s Annual Performance Report published each February. The FCC also issues a Summary of FCC’s Annual Performance Report published each February. The FCC also issues a Summary of
Performance and Financial Results every February, providing a concise, citizen-focused review of Performance and Financial Results every February, providing a concise, citizen-focused review of
the agency’s accomplishments. the agency’s accomplishments.
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FCC Operations: Budget, Authorization, and
Reporting to Congress
Since the 110th Congress, the FCC has been funded through the House and Senate Financial Since the 110th Congress, the FCC has been funded through the House and Senate Financial
Services and General Government Services and General Government
was funded through what is now the Commerce, Justice, Science appropriations bill, also as a was funded through what is now the Commerce, Justice, Science appropriations bill, also as a
single line item. The FCC’s budgets from FY2012 to single line item. The FCC’s budgets from FY2012 to
regulatory fees to offset costs incurred by the agency and to carry out its functions. The FCC is regulatory fees to offset costs incurred by the agency and to carry out its functions. The FCC is
authorized to review the regulatory fees each year and adjust them to reflect changes in its authorized to review the regulatory fees each year and adjust them to reflect changes in its
appropriation from year to year. The commission originally implemented the Regulatory Fee appropriation from year to year. The commission originally implemented the Regulatory Fee
The fees, often referred to as “Section (9) fees,” are collected from license holders and certain other entities (e.g., cable The fees, often referred to as “Section (9) fees,” are collected from license holders and certain other entities (e.g., cable
television systems). The regulatory fees do not apply to governmental entities, amateur radio operator licensees, television systems). The regulatory fees do not apply to governmental entities, amateur radio operator licensees,
nonprofit entities, and certain other non-commercial entities. nonprofit entities, and certain other non-commercial entities.
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The Federal Communications Commission: Structure, Operations, and Budget
FCC Authorization
Through the Consolidated Appropriations Act, 2018 (P.L. 115-141), the FCC was reauthorized for Through the Consolidated Appropriations Act, 2018 (P.L. 115-141), the FCC was reauthorized for
the first time since 1990 (FCC Authorization Act of 1990, P.L. 101-396). the first time since 1990 (FCC Authorization Act of 1990, P.L. 101-396).
FCC Reporting to Congress
The FCC publishes four periodic reports for Congress. All of these reports are available on the The FCC publishes four periodic reports for Congress. All of these reports are available on the
FCC website, https://www.fcc.gov/about/strategic-plans-budget. FCC website, https://www.fcc.gov/about/strategic-plans-budget.
FCC develops its yearly Performance Plan and Performance Budget. It is FCC develops its yearly Performance Plan and Performance Budget. It is
developed and submitted in accordance with the Government Performance and developed and submitted in accordance with the Government Performance and
Results Modernization Act of 2010, P.L. 111-352. Results Modernization Act of 2010, P.L. 111-352.
targets based on the FCC’s strategic goals and objectives, and serves as the guide targets based on the FCC’s strategic goals and objectives, and serves as the guide
for implementing the Strategic Plan. The Performance Budget becomes part of for implementing the Strategic Plan. The Performance Budget becomes part of
the President’s annual budget request. the President’s annual budget request.
financial and other information, such as a financial discussion and analysis of the financial and other information, such as a financial discussion and analysis of the
agency’s status, financial statements, and audit reports. agency’s status, financial statements, and audit reports.
an Annual Performance Report that compares the agency’s actual performance an Annual Performance Report that compares the agency’s actual performance
with its targets.with its targets.
Activity in the
118th Congress • “Oversight of President Biden’s Broadband Takeover” House Committee on Energy and Commerce 12 For additional information on the FCC’s spectrum auction authority, see CRS Report R47258, FCC Spectrum Auction Authority: Background and Proposals for Extension, by Jill C. Gallagher and Patricia Moloney Figliola, and CRS Report R47578, The Federal Communications Commission’s Spectrum Auction Authority: History and Options for Reinstatement, by Patricia Moloney Figliola and Jill C. Gallagher. 13 OMB Circular A-136 allows agencies the option of producing (1) two separate reports, an Agency Financial Report and an Annual Performance Report, or (2) a consolidated Performance and Accountability Report. The same information is provided to Congress in either case. The FCC elected the first option for FY2011. Also, in addition to the reports it submits to Congress, the FCC publishes an annual Summary of Performance and Financial Information, which is a citizen-focused summary of the FCC’s yearly activities. Congressional Research Service 11 The Federal Communications Commission: Structure, Operations, and Budget Subcommittee on Communications and Technology November 30, 2023.14 • FCC Appropriations Senate Committee on Appropriations Subcommittee on Financial Services and General Government September 19, 2023.15 • “Oversight of the Federal Communications Commission” House Committee on Energy and Commerce Subcommittee on Communications and Technology June 21, 2023.16 Three bills that would affect the operation of the FCC have been introduced in the 118th Congress: • Spectrum Coordination Act (H.R. 1341) Introduced on March 3, 2023, and ordered to be reported by the Committee on Energy and Commerce on March 24, 2023. This bill would require periodic updates to the memorandum of understanding that guides federal efforts to coordinate the efficient management and use of the electromagnetic spectrum. It would also require documentation of interagency coordination during spectrum actions. • Spectrum Auction Reauthorization Act of 2023 (H.R. 3565) This bill would reauthorize the FCC’s authority to auction spectrum and would specify the distribution of proceeds from auctions.17 • FCC Legal Enforcement Act (S. 2095) Introduced on June 21, 2023, and referred to the Committee on Commerce, Science, and Transportation This bill would authorize the FCC to enforce its own forfeiture penalties with respect to violations of restrictions on the use of telephone equipment. Additionally, although not aimed at directing how the FCC operates, three bills and one resolution have been introduced in the 118th Congress that would extend the Affordable Connectivity Program,18 which is set to run out of funds in mid-May 2024 (see 14 House Committee on Energy and Commerce, “Chairs Rodgers and Latta Announce FCC Oversight Hearing,” Press Release, November 21, 2023, https://energycommerce.house.gov/posts/chairs-rodgers-and-latta-announce-fcc-oversight-hearing. Hearing video not available. 15 Senate Committee on Appropriations, “Review of the FY 2024 Budget for the Federal Communications Commission,” September 19, 2023 (full hearing video), https://www.appropriations.senate.gov/hearings/review-of-the-fy-2024-budget-for-the-federal-communications-commission. 16 House Committee on Energy and Commerce, ““Oversight of the Federal Communications Commission,” Hearing Memorandum, June 21, 2023, (full hearing video), https://democrats-energycommerce.house.gov/committee-activity/hearings/hearing-on-oversight-of-the-federal-communications-commission-4. 17 For additional information on the FCC’s spectrum auction authority, see CRS Report R47258, FCC Spectrum Auction Authority: Background and Proposals for Extension, by Jill C. Gallagher and Patricia Moloney Figliola, and CRS Report R47578, The Federal Communications Commission’s Spectrum Auction Authority: History and Options for Reinstatement, by Patricia Moloney Figliola and Jill C. Gallagher. 18 For additional information on the FCC’s Affordable Connectivity Program, see CRS In Focus IF12637, The End of the Affordable Connectivity Program: What Next for Consumers?, by Patricia Moloney Figliola. Congressional Research Service 11 link to page 12 The Federal Communications Commission: Structure, Operations, and Budget Table 1). Congressional Research Service 12 The Federal Communications Commission: Structure, Operations, and Budget Table 1. Legislation to Extend the Affordable Connectivity Program 118th Congress Bills Summary Affordable Connectivity Program This bil extends and provides FY2024 funding for the Affordable Extension Act of 2024, S. 3565 and H.R. Connectivity Program, which provides a monthly benefit that allows 6929/H.Res. 1119 eligible low-income households to receive discounted internet service. The program also provides a one-time discount that may be used to purchase a connected device, such as a computer. Both bil s would appropriate to the Affordable Connectivity Fund $7,000,000,000 for FY2024, to remain available until expended. A bil to authorize annual appropriations A bil to authorize annual appropriations for the Affordable for the Affordable Connectivity Program, Connectivity Program, to expand the Universal Service Fund to to expand the Universal Service Fund to support the Affordable Connectivity Program, and for other support the Affordable Connectivity purposes. The ful text of the bil is not yet available through Program, and for other purposes, S. 4208 Congress.gov. Source: CRS
Author Information
Patricia Moloney Figliola Patricia Moloney Figliola
Specialist in Internet and Telecommunications Specialist in Internet and Telecommunications
Policy Policy
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