The Federal Communications Commission: Structure, Operations, and Budget

Contents

• Introduction
• The Communications Act of 1934
• FCC Leadership
• FCC Offices and Bureaus
• FCC Budget, FY2026
• FCC Performance Plan, FY2026
• FCC Reporting to Congress
• Legislative Activity in the 119^th Congress
• Issues of Interest to Congress

Summary

The Federal Communications Commission (FCC) is an independent federal agency established by the Communications Act of 1934 (1934 Act, or "Communications Act"). The agency is charged with regulating interstate and international communications by radio, television, wire, 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, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges."

The FCC is directed by five commissioners appointed by the President and confirmed by the Senate for five-year terms. The President designates one commissioner as chairperson. By law, the maximum number of commissioners who may be of the same political party is the least number that constitutes a majority (i.e., three). At the time of this report's publication, the agency has one Republican commissioner, Brendan Carr, who was designated chairman by President Trump, and one Democratic commissioner, Anna Gomez, who was appointed by President Biden; three seats are vacant because of resignations. The 1934 Act requires three commissioners to form a quorum, which is necessary for the FCC to fully execute its regulatory authorities. In February 2025, President Trump nominated Olivia Trusty to fill one of the vacated Republican seats. Trusty's nomination cleared the Senate Committee on Commerce, Science, and Transportation on April 30, 2025. At the time of this report's publication, no date has been set for a confirmation vote by the full Senate. President Trump has not indicated whom he might nominate for the remaining open seats. The day-to-day functions of the FCC are carried out by seven bureaus and 12 offices. 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.

The FCC operates under a public interest mandate first laid out in the 1927 Radio Act (P.L. 69-632) and reiterated in the 1934 Act; how this mandate is applied depends on how the Commission interprets "the public interest." 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. Congress granted the FCC significant latitude and flexibility to interpret the public interest standard to reflect changing circumstances, and neither Congress nor the agency has defined it in concrete terms. These circumstances, paired with changes in FCC leadership according to the party that holds the presidency, have led to significant changes in how the FCC regulates the broadcast and telecommunications industries over time.

Beginning in the 110^th Congress, the FCC has been funded through the House and Senate Financial Services and General Government appropriations bill as a single line item. Previously, it was funded through what is now the Commerce, Justice, Science, and Related Agencies appropriations bill, also as a single line item. The FCC's funding is determined by appropriations language, but since 2009, it has been financed 100% by regulatory fees expected to be collected by the agency. 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 it collects each year and to adjust them to reflect changes in the budget authority provided to the agency from year to year. In most years, appropriations language prohibits the commission from using any excess regulatory fees that are collected in the current or prior fiscal years.

For FY2026, the FCC requested a budget authority of $416,112,000 from its regulatory fee offsetting collections. The request is an increase of $25,920,000, or 6.6%, from the FY2025 full-year continuing appropriations level of $390,192,000. The FCC also requested $132,681,000 in budget authority for the Spectrum Auctions Program, in which bands of the electromagnetic spectrum are auctioned to wireless telecommunication providers. This request is a decrease of $3,486,000, or 3%, from the FY2025 full-year continuing appropriations level of $136,167,000. The FCC's general spectrum auction authority (i.e., authority to auction any band) expired on March 9, 2023. The FCC has separate authority to auction certain other bands, and the agency plans to use the funds for these purposes, as well as other spectrum management activities. Unless Congress reinstates the FCC's authority to conduct auctions, the agency cannot generate or collect auction revenues.

Introduction

The Federal Communications Commission (FCC) is an independent federal agency with 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 all people of the United States have available, "without discrimination on the basis of race, color, religion, national origin, or sex, a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges."³

Congress has long taken an interest in the FCC's functions given the agency's responsibility for regulating communications and communications industries, including the broadcast; telecommunications, such as wireline and wireless; cable; and satellite industries. These industries provide everyday and emergency communication services for individuals, businesses, and governments; internet service for schools, libraries, rural health care providers, and tribal areas; and entertainment. FCC-regulated industries are also important to the U.S. economy. As one example, according to an April 2024 report, Wireless Investment and Economic Benefits,

From 2020, the five publicly-traded mobile carriers—AT&T, Dish, Verizon, T-Mobile, and UScellular—have invested an average of $54 billion per year, making them the second-highest investing industry [in the United States] after the Tech/internet sector. Since 2011, the biggest five wireless providers' capital expenditures of $591 billion are comparable to the capital expenditures of the "Big 5" tech companies ($611 billion).⁴

This CRS Report provides summaries of

• the 1934 Act, as amended, as it is the governing statute of the FCC;
• agency leadership and composition;
• the FY2026 budget request and Performance Plan;
• agency authorization and reporting to Congress; and
• legislative activity in the 119^th Congress.

The Communications Act of 1934

The 1934 Act is divided into titles and sections that describe various powers and concerns of the commission.⁵ The agency is largely organized around the functions described in the titles.

• 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.

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. No more than three commissioners may be members of the same political party, and none may have a financial interest in any commission-related business. At the time of this report's publication, the commission has

• one Republican commissioner, Brendan Carr, appointed by President Trump in his first term and sworn in August 11, 2017, who was designated chairman by President Trump in January 2025,⁶ and
• one Democratic commissioner, Anna Gomez, appointed by President Biden and sworn in September 25, 2023.

Three seats are vacant after the resignation of then-Chairwoman Jessica Rosenworcel in January 2025 and of Commissioners Geoffrey Starks and Nathan Simington in June 2025. President Trump has nominated Olivia Trusty for commissioner. Trusty's nomination cleared the Senate Committee on Commerce, Science, and Transportation on April 20, 2025.⁷ At the time of this report's publication, no date has been set for a confirmation vote by the full Senate. President Trump has not indicated publicly whom he might nominate for either of the remaining open seats. The 1934 Act requires three commissioners to form a quorum,⁸ the minimum number of commissioners needed to execute the full authority of the FCC. Per FCC rules, when there is not a quorum, the FCC chairman is authorized to establish a Board of Commissioners, which is authorized to carry out all functions of the commission, except

• making "the final determination on the merits of any adjudicatory or investigatory hearing proceeding or of any rule making proceeding, except upon a finding by the Board that the public interest would be disserved by waiting the convening of a quorum of the Commission";
• acting on "petitions for reconsideration of Commission actions"; and
• acting on "applications for review of actions taken pursuant to delegated authority," with certain exceptions.⁹

FCC Offices and Bureaus

The day-to-day functions of the FCC are carried out by seven bureaus and 12 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 latest bureau, the Space Bureau, was established on April 2, 2023.

The bureaus process applications for licenses and other filings, analyze complaints, conduct investigations, develop and implement regulatory programs,¹⁰ and participate in hearings, among other things. The offices provide support services. Bureaus and offices often collaborate when addressing FCC issues.¹¹ The bureaus hold the following responsibilities:¹²

• 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 areas as emergency preparedness and implementation of new technologies. In addition, the Bureau's Disability Rights Office provides policy and compliance advice on accessibility with respect to various forms of communications for persons with disabilities.
• Wireless Telecommunications Bureau—Responsible for wireless telecommunications programs and policies in the United States and its territories, including licensing and regulatory functions.¹³ Wireless communications services include cellular, paging, personal communications, mobile broadband, and other radio services used by businesses and private citizens.
• Media Bureau—Recommends, develops, and administers the policy and licensing programs related 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 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.
• 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:¹⁴

• Inspector General—Conducts and supervises audits and investigations related to FCC programs and operations.
• Administrative Law Judges—Composed of one judge (and associated staff) who presides over hearings and issues decisions on matters referred by the FCC.
• Engineering and Technology—Advises the FCC on technical and engineering matters. This office develops and administers FCC decisions regarding electromagnetic spectrum allocations for wireless communication 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 functions.
• Economics and Analytics—Responsible for expanding and deepening the use of economic analysis into FCC policymaking, for enhancing the development and use of spectrum auctions, and for implementing agencywide data practices and policies. The office also manages the FCC's auctions in support of and in coordination with other bureaus and offices.
• Legislative Affairs—Serves as the liaison between the FCC and Congress, as well as other federal agencies.
• 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 the FCC provides employment opportunities for all persons regardless of race, color, sex, national origin, religion, age, disability, or sexual orientation.
• Secretary—Preserves the integrity of FCC records, oversees the receipt and distribution of documents filed by the public through electronic and paper filing systems, and gives legal notice of FCC decisions by publishing them in the Federal Register and the FCC Record.

FCC Budget, FY2026

Since the 110^th Congress, the FCC has been funded through the House and Senate Financial Services and General Government appropriations bill as a single line item. Previously, it was funded through what is now the Commerce, Justice, Science, and Related Agencies appropriations bill, also as a single line item. The FCC's budgets from FY2012 to FY2026 are shown in Figure 1. The FCC's funding is determined by appropriations language, but since 2009, it has been financed 100% by regulatory fees expected to be collected by the agency.¹⁵

By law, the FCC is to annually collect and retains regulatory fees to offset costs incurred by the agency and to carry out its functions.¹⁶ The FCC is authorized to review the regulatory fees each year and adjust them to reflect changes in its appropriation from year to year.

For FY2026, the FCC requested a budget authority of $416,112,000 from regulatory fee offsetting collections. The request is an increase of $25,920,000, or 6.6%, from the FY2025 full-year continuing appropriations level of $390,192,000. The FCC also requested $132,681,000 in budget authority for the Spectrum Auctions Program. This request is a decrease of $3,486,000, or 3%, from the FY2025 full-year continuing appropriations level of $136,167,000. The FCC's general 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.¹⁷

Figure 1. Historical Distribution of Appropriated FCC Budget Authority FY2012-FY2026 Request (Current Dollars in Millions)

Source: Federal Communications Commission (FCC), 2026 Budget Estimates to Congress, May 2025, https://docs.fcc.gov/public/attachments/DOC-411718A1.pdf. Notes: For FY2016 and FY2017, $44 million and $17 million, respectively, were provided for the necessary expenses associated with moving the FCC headquarters (HQ) to a new facility to significantly reduce space consumption. In FY2013, the FCC's appropriated budget authority was reduced by $17 million because of the FY2013 sequestration order implemented on March 1, 2013, as required by the Budget Control Act of 2011 (P.L. 112-25). The total amount shown for FY2013 in the graph includes the $17 million sequestered amount.

FCC Performance Plan, FY2026

The FCC's Performance Plan is submitted with the commission's annual budget request to Congress. The FY2026 plan outlines four goals, shown in Table 1. For more detailed information about how the FCC is working to achieve the goals described in the Performance Plan, see CRS In Focus IF13026, The Federal Communications Commission: FY2026 Performance Plan and Selected Actions, by Patricia Moloney Figliola.

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.
• 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.¹⁸

Legislative Activity in the 119^th Congress

As of this report's publication, no bills that would affect the operation of the FCC have been introduced in the 119^th Congress.

One hearing related to FCC operations and budget has been held in the 119^th Congress:

• "Oversight of the Federal Communications Commission,"
  Subcommittee on Financial Services and General Government,
  House Committee on Appropriations,
  May 21, 2025.¹⁹

Issues of Interest to Congress

In addition to ongoing potential congressional issues of interest related to the FCC, the House Committee on Appropriations oversight hearing on May 21, 2025, highlighted several recent issues and questions:

• At the time of this report's publication, the FCC has only two commissioners, potentially limiting the agency's ability to conduct its work. For example, with no quorum, agency decisionmaking could be further delegated to bureaus, which in the past has led to confusion for companies adversely affected by bureau decisions.²⁰ Could this situation be a consideration in the Senate's timetable for voting on confirmation of a new commissioner (or commissioners, as they are nominated)?
• Are the goals described in the FCC's FY2026 Performance Plan consistent with congressional intent?
• With fewer full-time equivalent (FTE) staff in all but one bureau or office (projected to be 119 fewer from FY2024 through FY2026), how might those reductions, if at all, affect the FCC's ability to fulfill its mission and achieve its performance goals? For example, "supporting domestic violence survivors" is an agency performance indicator, but the FCC recently stated that it cannot implement that rule because of "complex technical implementation challenges."²¹
• What considerations, if any, might FCC's plans to eliminate regulations without notice and comment raise with regard to the Administrative Procedure Act?
• Can profits from spectrum auctions be included as a means for deficit reduction in the FY2026 budget reconciliation bill? The House of Representatives has included the use of auction proceeds for this purpose in H.R. 1, but it is unclear as of the date of this report's publication whether the Senate Parliamentarian will approve this language under the "Byrd rule" for inclusion in the Senate version of the bill.²² If profits from auctions cannot be used, that could have an effect on the bill as a whole.
• Will the FCC be able to expand the use of new satellite services, as planned for its broadband policies, without spectrum auction authority?

Footnotes