The Federal Communications Commission:
May 3, 2022
Structure, Operations, and Budget
Patricia Moloney Figliola
The Federal Communications Commission (FCC) is an independent federal agency established
Specialist in Internet and
by the Communications Act of 1934 (1934 Act, or “Communications Act”). The agency is
Telecommunications
charged with regulating interstate and international communications by radio, television, wire,
Policy
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
rapid, efficient, Nationwide, and worldwide wire and radio communication service with adequate
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
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.
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
changes in FCC leadership, have led to significant changes over time in how the FCC regulates the broadcast and
telecommunications industries.
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. Three commissioners may be members of the same political
party of the President 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, 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 vote.
The day-to-day functions of the FCC are carried out by 7 bureaus and 11 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
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
collaborate when addressing FCC issues.
Beginning in the 110th Congress, the FCC has been funded through the House and Senate Financial Services and General
Government (FSGG) 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. Since 2009 the FCC’s budget has been derived from regulatory
fees collected by the agency rather than through a direct appropriation. 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
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.
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.
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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
FCC FY2023 Budget ................................................................................................................. 9
FCC Authorization .................................................................................................................. 10
FCC Reporting to Congress .................................................................................................... 10
Activity in the 117th Congress ........................................................................................................ 11
Figures
Figure 1. FCC FY2012-FY2021 Appropriated Budget Authority, FY2022 Budget
Estimate, and FY2023 Budget Request ...................................................................................... 10
Contacts
Author Information ......................................................................................................................... 11
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
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
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
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
reasonable charges.”3
The 1934 Act is divided into titles and sections that describe various powers and concerns of the
commission.4
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
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
chairman.
Title II—Common carrier regulation, primarily telephone regulation, including
circuit-switched telephone services offered by cable companies. Common
carriers are communication companies that provide facilities for transmission but
do not originate messages, such as telephone and microwave providers. The 1934
Act limits FCC regulation to interstate and international common carriers,
although a joint federal-state board coordinates regulation between the FCC and
state regulatory commissions.
Title III—Broadcast station requirements. Much existing broadcast regulation
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.
Title IV—Procedural and administrative provisions, such as hearings, joint
boards, judicial review of the FCC’s orders, petitions, and inquiries.
Title V—Penal provisions and forfeitures, such as violations of rules and
regulations.
Title VI—Cable communications, such as the use of cable channels and cable
ownership restrictions, franchising, and video programming services provided by
telephone companies.
Title VII—Miscellaneous provisions and powers, such as war powers of the
President, closed captioning of public service announcements, and
telecommunications development fund.
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
are to the 1934 Act, as amended, unless indicated.
2 See “About the FCC,” at http://www.fcc.gov/aboutus.html.
3 47 U.S.C. §151.
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
bureaus, Broadcast, Telegraph, and Telephone.
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The Federal Communications Commission: Structure, Operations, and Budget
FCC Leadership
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.
Three commissioners may be members of the same political party of the President and none may
have a financial interest in any commission-related business.
Jessica Rosenworcel, Chair (sworn in for a second term on December 7, 2021,
for a term to expire on July 1, 2025);
Brendan Carr (sworn in on August 11, 2017);
Geoffrey Starks (sworn in on January 30, 2019); and
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.
FCC Structure
The day-to-day functions of the FCC are carried out by 7 bureaus and 11 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, largely in response to Hurricane Katrina.
The bureaus process applications for licenses and other filings, analyze complaints, conduct
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
addressing FCC issues.6 The bureaus hold the following responsibilities:
Consumer and Governmental Affairs Bureau—Develops and implements
consumer policies, including disability access and policies affecting Tribal
nations. The bureau serves as the public face of the commission through outreach
and education, as well as responding to consumer inquiries and informal
complaints. The bureau also maintains collaborative partnerships with state,
local, and tribal governments in such critical areas as emergency preparedness
and implementation of new technologies. In addition, the Bureau’s Disability
Rights Office provides expert policy and compliance advice on accessibility with
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, 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
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, The
Federal Rulemaking Process: An Overview, coordinated by Maeve P. Carey.
6 FCC Fact Sheet, http://www.fcc.gov/cgb/consumerfacts/aboutfcc.html.
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The Federal Communications Commission: Structure, Operations, and Budget
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.
Public Safety and Homeland Security Bureau—Develops and implements
policies and programs to strengthen public safety communications, homeland
security, national security, emergency management and preparedness, disaster
management, and network reliability. These efforts include rulemaking
proceedings that promote more efficient use of public safety spectrum, improve
public alerting mechanisms, enhance the nation’s 911 emergency calling system,
and establish frameworks for communications prioritization during crisis. The
bureau also maintains 24/7 operations capability and promotes Commission
preparedness to assist the public, first responders, the communications industry,
and all levels of government in responding to emergencies and major disasters
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:
Administrative Law Judges—Composed of one judge (and associated staff) who
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, 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,
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The Federal Communications Commission: Structure, Operations, and Budget
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.
Legislative Affairs—Serves as the liaison between the FCC and Congress, as
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 oversees the
receipt and distribution of documents filed by the public through electronic and
paper filing systems. In addition, the office gives effective legal notice of FCC
decisions by publishing them in the Federal Register and 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 FY2022-2026.9 The plan outlines six
goals:
Pursue a “100 Percent” Broadband Policy. The COVID-19 pandemic put a
spotlight on the serious broadband gaps that exist across the country, including in
rural infrastructure, affordability for low-income Americans, and at-home access
for students. This continuing digital divide means millions of Americans do not
have meaningful access to essential infrastructure for 21st century success. In
response to the COVID-19 pandemic and the challenges that many Americans
face, the agency should advance access to communications that are essential for
Americans to work remotely, learn remotely, receive healthcare, and engage in
commerce. To this end, the FCC will pursue policies to help bring affordable,
reliable, high-speed broadband to 100% of the country.
Promote Diversity, Equity, Inclusion, and Accessibility. The FCC will seek to
gain a deeper understanding of how the agency’s rules, policies, and programs
may promote or inhibit advances in diversity, equity, inclusion, and accessibility.
The FCC will pursue focused action and investments to eliminate historical,
systemic, and structural barriers that perpetuate disadvantaged or underserved
individuals and communities. In so doing, the FCC will work to ensure equitable
and inclusive access and facilitate the ability of underserved individuals and
communities to leverage and benefit from the wide range of opportunities made
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 Commission, Strategic Plan 2022-2026, February 2022, https://docs.fcc.gov/public/
attachments/DOC-381830A1.pdf.
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The Federal Communications Commission: Structure, Operations, and Budget
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
management and policymaking processes and will benefit all Americans.
Empower Consumers. Consumers who are well informed about their rights and
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
opportunities stemming from the COVID-19 pandemic, plans for post-COVID
recovery, and digital transitions. The FCC also will pursue effective enforcement
and new approaches to protect consumers from unwanted and intrusive
communications, phone-based scams, telephone privacy issues, and other trends
that affect consumers. The FCC will work to enhance competition and pursue
policies that protect the competitive process to improve consumer choice and
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
ensure the availability of quality, functionally equivalent communications
services for persons with disabilities.
Enhance Public Safety and National Security. The FCC will pursue policies to
promote the availability of secure, reliable, interoperable, redundant, and rapidly
restorable critical communications infrastructure and services. The FCC also will
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
coordination with federal and state, local, tribal, and territorial government
partners and industry stakeholders to support disaster response and to ensure the
nation’s defense and homeland security.
Advance America’s Global Competitiveness. The FCC will take action to
promote investment and advance the development and deployment of new
communications technologies, such as 5G, that will allow the nation to remain a
global leader in an increasingly competitive, international marketplace. The FCC
will identify incentives and policies to close security gaps and accelerate
trustworthy innovation. The FCC will work with its federal partners to advocate
for U.S. interests abroad.
Foster Operational Excellence. The FCC should be a model for excellence in
government by effectively managing its resources, maintaining a commitment to
transparent and responsive processes that encourage public involvement and
decisionmaking that best serves the public interest, and encouraging a culture of
collaboration both internally and across government agencies.
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
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.
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
Performance and Financial Results every February, providing a concise, citizen-focused review of
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
Services and General Government (FSGG) 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. The FCC’s budgets from FY2012 to FY2023 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 annually collects and retains
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
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.
10 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
television systems). The regulatory fees do not apply to governmental entities, amateur radio operator licensees,
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.
FCC Authorization
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).
FCC Reporting to Congress
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.
Strategic Plan. The five-year Strategic Plan is the framework around which the
FCC develops its yearly Performance Plan and Performance Budget. It is
developed and submitted in accordance with the Government Performance and
Results Modernization Act of 2010, P.L. 111-352.
Performance Budget. The annual Performance Budget includes performance
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
the President’s annual budget request.
Agency Financial Report. The annual Agency Financial Report contains
financial and other information, such as a financial discussion and analysis of the
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
an Annual Performance Report that compares the agency’s actual performance
with its targets.11
Activity in the 117th Congress
One hearing related to FCC operations and budget has 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.
Author Information
Patricia Moloney Figliola
Specialist in Internet and Telecommunications
Policy
Disclaimer
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
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
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
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
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.
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