House Appropriations Subpanel Advances FY25 Cuts to Commerce Dept., DOJ Antitrust Funding

House Democrats rang alarm bells Wednesday over the Appropriations Commerce, Justice, Science and Related Agencies (CJS) Subcommittee’s proposal reducing FY 2025 allocations for NTIA and other Commerce Department agencies. The subpanel advanced its FY25 bill on a voice vote Wednesday after Republicans defended the proposed cuts, including a significant slashing of annual funding for the DOJ Antitrust Division. Commerce Secretary Gina Raimondo fielded repeated questions during a House Innovation Subcommittee hearing Wednesday about Republicans’ claims that NTIA’s requirement that broadband equity, access and deployment (BEAD) program participants offer a low-cost connectivity option constitutes rate regulation.

House Appropriations Committee Chairman Tom Cole, R-Okla., said the CJS bill “reflects making needed decisions to rein in wasteful spending” while also confronting “China’s efforts to steal U.S. technology and innovation.” CJS Chairman Hal Rogers, R-Ky., said the measure “addresses China and its aggressive overreach by making considerable investments in American science agencies.” The Patent Office is the only Commerce Department agency that saw an increase in funding for FY25 in the House Appropriations CJS bill. The office would get $4.56 billion, which is what President Joe Biden proposed in March (see 2403110056) and more than 8% higher than what it received for FY 2024.

NTIA would get $56.5 million, more than a 15% decrease from what Biden sought and 4% less than its FY24 funding (see 2403040083). The National Institute of Standards and Technology would receive $1.42 billion, down more than 5% from Biden’s proposal and a 3% decrease from FY24. The Bureau of Industry and Security would get $186.7 million, 16% less than Biden sought and a 2% decrease from FY24. DOJ Antitrust would be funded at $192.8 million, 33% less than Biden proposed and a 17% decrease from FY24.

The House Appropriations Labor, Health and Human Services, Education and Related Agencies (LHHS) Subcommittee released its FY25 bill Wednesday without language about continuing advance appropriations for CPB in FY 2027, as expected (see 2406250056). The subpanel will mark up the bill Thursday.

House Appropriations Democrats trained their fiercest criticisms of the CJS bill on its proposals that reduce funding for the FBI and other federal law enforcement agencies. They also raised concerns about the Commerce cuts. CJS ranking member Matt Cartwright of Pennsylvania said the reduction in BIS funding “weakens” its “power to prevent advanced American technologies from bolstering the military capabilities of Russia and the People’s Republic of China.” House Appropriations ranking member Rosa DeLauro of Connecticut criticized Republicans for DOJ Antitrust cuts.

House Commerce Hearing

House Commerce Democrats took sharper aim against the CJS bill’s Commerce Department cuts. “If House Republicans were really more serious about being tough on China, they’d be increasing Commerce’s budget, not slashing it,” said panel ranking member Frank Pallone, D-N.J. “We should be building on the successful policies” Commerce has implemented during the Biden administration, including its rollout of the $42.5 billion BEAD program, “not undermining them.” Congress “really can’t afford” to reduce the department’s funding as House Appropriations Republicans propose, said House Innovation ranking member Jan Schakowsky, D-Ill.

House Commerce Republicans and Democrats offered dueling interpretations of the BEAD program’s low-cost service option requirement, an issue that arose during a May Appropriations CJS hearing with Raimondo (see 2405080067). House Communications Subcommittee member Rep. John Joyce, R-Pa., waived into the hearing to repeat other Republicans’ earlier assertions that the rule was a form of rate regulation. Raimondo’s statements that it’s not rate regulation are “not aligned with reality,” Joyce said.

“We’ve heard from numerous states that NTIA is requiring them to specify rates for various broadband offerings in order to receive a final approval of its initial [BEAD] proposal,” Joyce told Raimondo. “Multiple broadband offices have told us that the pressure from NTIA is real and that the threat of losing funds was too great not to give in to these demands. Some states have also complained that you specifically … are calling their governors and demanding that the state comply.”

Commerce is “not engaged in rate regulation” via BEAD implementation, Raimondo told Joyce. The 2021 Infrastructure Investment and Jobs Act “is crystal clear” that “every state must provide a low-cost option” to receive BEAD funding. She denied calling governors to pressure them on BEAD. “I’m doing my job,” Raimondo said: “A lot of these governors are dragging their feet and I’m saying ‘We want to get this money out quickly. Please get us your proposal and work with us.’”

Pallone said he doesn’t think Republicans’ characterization of the BEAD rules as rate regulation is “true.” Rep. Yvette Clarke, D-N.Y., later connected the BEAD funding and other parts of the IIJA connectivity money under NTIA’s control with the FCC’s expired affordable connectivity program. She wants a House vote on her ACP Extension Act (HR-6929/S-3565), which would get the program $7 billion in stopgap money (see 2406200057). “ACP is necessary,” Raimondo said: “It’s literally life or death” and if Congress doesn’t “renew that … you’re pulling the rug out from” 23 million households that received the subsidy.