The Administration supports House passage of H.R. 4560. The
version of the bill that the Administration understands will
be considered on the House floor would postpone the auctions
scheduled for June 19, 2002, of spectrum in the 700 MHz band
by the Federal Communications Commission (FCC) but require that
these auctions be held by September 30, 2007, when the FCC's
current auction authority expires. The Administration believes
that the auctions, as currently scheduled, would be premature
and contrary to the public interest until more certainty exists
about the means for and timing of clearing this spectrum.
Any law that would reduce receipts or increase direct spending
is subject to the PAYGO requirements of the Balanced Budget
and Emergency Deficit Control Act (BEA) and could cause a
sequester of mandatory programs in any fiscal year through
2006. The requirement to score PAYGO costs expires on September
30, 2002, and there are no discretionary caps beyond 2002.
The Administration will work with Congress to ensure fiscal
discipline consistent with the President's budget and a quick
return to a balanced budget. The Administration will also
work with Congress to ensure that any unintended sequester
of spending does not occur.
OMB preliminary scoring indicates that H.R. 4560 would reduce
receipts by $5.4 billion in 2003 and 2004, but increase receipts
by $8.3 billion in 2005 and 2006, for a net budget savings
of $2.9 billion. Final scoring may deviate from these estimates.