FEDERAL COMMUNICATIONS COMMISSION

MISSION STATEMENT

The FCC is an independent regulatory agency that has jurisdiction over inter- state and international communications by radio, television, wire, satellite, and cable.1 Five Commissioners are appointed by the President and confirmed by the Senate for fixed five-year terms.2 The FCC does not have any other presidentially appointed, Senate-confirmed officials. Ordinarily, the five-member FCC is divided politically three to two with a majority of Commissioners from the same political party as the President. The Commissioners’ terms are staggered so that every year at the end of June, one Commissioner’s term expires.3 However, a Commissioner can continue to serve until the end of the next session of Congress (or up to 1.5 years beyond the expiration of the term) if no replacement is confirmed after his or her term ends.4

By law, only a bare majority of Commissioners can be from the same politi- cal party (no more than three when there are five members).5 By tradition, the Chairperson resigns when a new President of a different political party is sworn

The FCC should promote freedom of speech, unleash economic opportunity, ensure that every American has a fair shot at next-generation connectivity, and enable the private sector to create good-paying jobs through pro-growth reforms that support a diversity of viewpoints, ensure secure and competitive communi- cations networks, modernize outdated infrastructure rules, and represent good stewardship of taxpayer dollars.

into office—though this is not required by law. By resigning, the exiting Commis- sioner enables the President to nominate someone from his own political party to the FCC, and this typically shifts the political balance on the FCC toward the President’s political party. The President generally designates one of the existing Commissioners of the President’s same political party as Chairperson—either on an acting or a permanent basis—on or shortly after Inauguration Day. Under a tradition that dates back a few decades, when a relevant vacancy arises, the President allows the leader of the opposite political party in the Senate to select the person who will serve in the minority Commissioner role. The President then formally nominates the person identified by Senate leadership. This also is not required by law.

As specified in the Communications Act of 1934, the FCC’s Chairperson serves as the agency’s CEO and is empowered with significant authority that is not shared with other Commissioners.6 For instance, the Chairperson sets the FCC’s agenda, decides what matters the agency will vote on and when, and has authority to orga- nize and coordinate the FCC’s work.7 There is no separate Senate confirmation process for the position of FCC Chairperson; the President designates one of the Commissioners to serve as Chairperson through a short one-sentence or two-sen- tence letter.8 There are no limits on the number of terms that a person can serve as an FCC Commissioner, though Commissioners need to be nominated and con- firmed for each five-year term.

FCC Budget and Structure. In recent years, the FCC has employed between 1,300 and 1,500 people.9 The FCC’s fiscal year 2023 budget request is for approx- imately $390.2 million.10 While Congress appropriates funds for the FCC, the agency’s budget is offset by what are known as regulatory fees—fees the FCC col- lects from the licensees and other entities that it regulates and uses to offset its budget request. The FCC also raises revenue for the government by auctioning spectrum licenses. In fact, the FCC has generated more than $200 billion for the U.S. Treasury through spectrum auctions.11

The FCC is organized into a series of bureaus and offices based on function. These include an Office of General Counsel, Office of Inspector General, Office of Legislative Affairs, Media Bureau, Wireless Telecommunications Bureau, Wireline Competition Bureau, Enforcement Bureau, and more.12

High-Profile FCC Matters. The FCC addresses a number of important mat- ters. For instance, Section 230 is codified in the Communications Act,13 and the FCC has authority to interpret that law and thus provide courts with guidance about the proper application of the statutory language.14 The FCC has addressed “net neutrality” rules and the regulatory framework that should apply to broadband offerings. Any merger that involves a wireless company, broadcaster, or similar entity that holds an FCC license must obtain FCC approval (assuming that the merger will involve the transfer of the FCC license).

The FCC has facilitated the transition from 3G to 4G and now 5G offerings in two ways. First, it has freed spectrum—the airwaves needed to deliver wireless ser- vices. Second, it has preempted state and local siting and permitting laws that could otherwise slow down the buildout of next-generation infrastructure. One of the FCC’s great success stories from 2017 to 2020 was securing U.S. leadership in 5G. The FCC also administers an approximately roughly $9 billion-a-year program called the Universal Service Fund (USF), which has been funded by a line-item charge that traditional telephone companies add to consumers’ monthly bills. Expenditures from this fund subsidize rural broadband networks and low-income programs as well as connections for schools, libraries, and rural health care facil- ities. Through various COVID-era laws, Congress has also provided the FCC with a one-time $24 billion appropriation for various low-income initiatives.