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With Congress Debating Trillions, a Community Guide to Federal Broadband Funding

Muninetworks.org has put together a handy overview of broadband programs – current and pending.

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Photo from office of Rep. Dan Newhouse, R-Wash.

September 30, 2021 – In response to the Covid-19 pandemic, Congress and the Biden Administration passed two federal stimulus relief packages with historic levels of funding for programs devoted to advancing digital equity – the American Rescue Plan Act and the Consolidated Appropriations Act.

In early August, legislators in the U.S. Senate passed the Infrastructure Investment and Jobs Act, a $1.2 trillion infrastructure package which continues many of the federal programs started by previous relief packages and includes $65 billion more for expanding high-speed Internet infrastructure and connectivity. Members of Congress returned from their summer break on September 20th and U.S. House Representatives are expected to vote on the infrastructure relief bill, which enjoys bipartisan support, on September 30th.

This guide consolidates the different funding opportunities made available through various relief packages to assist communities interested in accessing federal funds to expand broadband infrastructure and digital inclusion services. It updates ILSR’s Community Guide to Broadband Funding released in April of 2021, which describes programs established under ARPA and CAA in more detail, provides additional resources and answers FAQs.

Important upcoming deadlines are bolded throughout this guide.

Infrastructure Investment and Jobs Act – Pending 

Though the legislation is pending in Congress, the version of the Infrastructure Investment and Jobs Act passed by the U.S. Senate in August of 2021 includes $65 billion for expanding Internet access and digital inclusion initiatives. The Senate bill takes a more holistic approach to addressing the digital divide than previous relief packages, as it includes historic levels of funding for digital skills training. Of the $65 billion:

  • $42.5 billion is being issued as block grants to states to fund the deployment of broadband infrastructure in “unserved” and “underserved” parts of the country. Funds can also be utilized to deploy affordable networks to low-income, multi-dwelling units (MDUs). Block grants of at least $100 million are reserved for all states.
  • $14.2 billion is devoted to extending and making permanent the Emergency Broadband Benefit Program established under the Consolidated Appropriations Act. The name of the program will change to the Affordable Connectivity Program, the monthly stipend offered will be reduced to $30 a month maximum in most cases, and eligibility for the program will increase to include households within 200 percent of the poverty line.
  • $2.75 billion will go to NTIA to establish programs promoting digital inclusion initiatives for communities which lack the skills, technologies and support necessary to take advantage of Internet connections. Of the $2.75 billion, $1.25 billion ($250 million a year for 5 years) is allocated for a competitive grant program, $60 million is for state planning grants, and $1.44 billion is for state implementation grants.
  • $2 billion will extend the Tribal Connectivity Program administered by NTIA, established under the Consolidated Appropriations Act.
  • $2 billion for USDA’s ReConnect Loan and Grant Program to deploy broadband to rural areas.
  • $1 billion will go to NTIA to create a grant program to expand access to middle-mile infrastructure.
  • $600 million will finance private activity bonds to fund broadband projects in partnership with the private sector.

As this legislation is pending, the rules and deadlines for these programs have yet to be established. A bipartisan federal infrastructure package is expected to pass Congress in the next two months. In the meantime, check out ILSR’s recent piece deciphering broadband provisions in the U.S. Senate infrastructure bill, Broadband Infrastructure Bill: The Good, The Bad & The Ugly.

Resources:

American Rescue Plan Act – Enacted March 2021

With the American Rescue Plan Act, the federal government specifically recognized and began to address critical infrastructure and connectivity needs across the country, and provided billions to states, municipalities, and counties to expand broadband infrastructure. The federal broadband programs introduced under the Rescue Plan required eligible projects to deliver higher-speed Internet connections than the federal government has required in the past, and also placed an emphasis on funding futureproof fiber infrastructure for the first time. The American Rescue Plan appropriated:

1. $350 billion to the Coronavirus State and Local Fiscal Recovery Fund – aid sent directly to states, counties, local municipalities and Tribal governments eligible to be used to make necessary investments in water, sewer, and broadband infrastructure.

Funding Guidance:

  • Eligible broadband projects are expected to be designed to deliver Internet service that reliably meets or exceeds symmetrical upload and download speeds of 100 Mbps. In areas where the geography makes this speed benchmark impractical to obtain, projects are expected to deliver Internet service that reliably meets or exceeds 100 Mbps download and between at least 20 Mbps and 100 Mbps upload speeds.

Deadlines:

  • Communities have a relatively long window of time to expand broadband infrastructure with these funds. Though communities must allocate the funds by December 2024, broadband projects do not have to be completed until December 2026.
  • The first payment was distributed to localities earlier this summer. The U.S. Treasury is required to distribute the second payment 12 months after the first.

Resources:

2. $10 billion to the Coronavirus Capital Projects Fund – aid issued in the form of state block grants to states, territories, and Tribes to cover the costs of capital projects like broadband infrastructure, and provide funding for connectivity devices and equipment. The focus of the Capital Projects Fund is confronting the need for improved broadband connectivity which was exposed during the pandemic. Capital projects must focus on enabling work, education, and health monitoring, including remote options.

Funding Guidance:

  • The guidelines for this program urge states to pursue “projects that involve broadband networks owned, operated by or affiliated with local governments, nonprofits and cooperatives — providers with less pressure to generate profits and with a commitment to serving entire communities.”
  • Although this is not a competitive grant program, states, territories, and freely associated states must submit an Application and a Grant Plan for their allocation of the Capital Projects Fund through the Treasury Submission Portal; for Tribal Governments, the Application also serves as their Grant Plan.
  • $9.8 billion is available to states through the Capital Projects Fund; $100 million is available to Tribes; $100 million is available to freely associated states.
  • Although local governments are ineligible to be direct recipients of these grants, states can suballocate a portion of their award to local governments, nonprofits and private entities.
  • Read more about eligible projects and grant processes here [pdf].

Deadlines:

  • The Treasury Portal for the fund opened on September 24. Applicants will have the ability to apply through December 24, 2021. Once funds are awarded, eligible entities will be able to use them through December 31, 2026.

Resources:

3. $7.17 billion to the FCC’s Emergency Connectivity Fund – federal program to assist schools and libraries as they transition to remote learning by partially funding the cost of Internet services and eligible equipment.

Deadlines:

  • The initial ECF Program application filing window closed on August 13. Due to demand, a second filing window will open on September 28 and run until October 13.

Resources:

Consolidated Appropriations Act – Enacted December 2020

The Consolidated Appropriations Act directed the FCC to establish the Emergency Broadband Benefit Program and directed NTIA to implement three new broadband grant programs. The federal government addressed broadband affordability for the first time with this relief package. CAA appropriated:

1. $3.2 billion to FCC’s Emergency Broadband Benefit Program – federal program providing $50 to $75/month subsidies for monthly Internet service to eligible households. Internet plans regularly costing less than $50 per month will be free to eligible subscribers. If the participating ISP chooses to provide devices, eligible households can also receive a one-time discount of up to $100 to purchase a laptop, desktop computer, or tablet from providers.

Deadlines:

  • Enrollment for the program began in May of 2021. Funding for the program has not run out and eligible households can continue to access the program today. Learn how to apply here.
  • The program will be indefinitely extended if the pending infrastructure package passes Congress.

Resources:

2. $268 million to NTIA’s Connecting Minority Communities Pilot Program – grants available to Black colleges and universities (HBCUs), Tribal colleges and universities (TCUs), Minority-serving institutions (MSIs), and consortiums led by an HBCU, TCU, or MSI including a minority business enterprise or a nonprofit organization in the surrounding community. Eligible equipment includes Wi-Fi hotspots, modems, routers, laptops, tablets, and other Internet-connected devices.

3. $300 million to NTIA’s Broadband Infrastructure Program – grants available to partnerships between states, local jurisdictions, and ISPs to expand fixed broadband service in unserved areas.

4. $980 million to NTIA’s Tribal Broadband Connectivity Program – grants available to Tribal governments and organizations to improve broadband infrastructure.

  • The initial application filing window closed on September 1. The timeline for the program may be extended if the pending federal infrastructure package passes Congress.
  • See NOFO here.
  • NTIA Program Overview Webpage

Editor’s Note: This piece was authored by Jericho Casper, a reporter for the Institute for Local Self Reliance’s Community Broadband Network Initiative. Originally appearing at MuniNetworks.org on September 28, 2021, the piece is republished with permission.

Contributing Reporter Jericho Casper graduated from the University of Virginia studying media policy. She grew up in Newport News in an area heavily impacted by the digital divide and has a passion for universal access and a vendetta against anyone who stands in the way of her getting better broadband.

Congress

Telecom Leaders Ask Congress to Streamline Permitting Ahead of BEAD Project Deployment

Lawmakers considered more than 30 legislative drafts targeting potential regulatory obstacles.

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Photo of former Federal Communications Commissioner Michael O’Rielly in 2018 by Gage Skidmore used with permission

WASHINGTON, April 20, 2023 — Telecom industry leaders on Wednesday urged Congress to streamline broadband permitting processes, claiming that the current regulatory burden could hinder the effectiveness of historic federal investments in digital infrastructure.

In a hearing of the House Communications and Technology Subcommittee, lawmakers debated the best solution to permitting challenges — and considered more than thirty legislative drafts targeting application timelines, environmental preservation reviews and other potential obstacles to broadband deployment.

Subcommittee Chair Bob Latta, R-Ohio, emphasized the urgency of enacting permitting reforms by pointing to the $42.5 billion Broadband Equity, Access and Deployment Program.

“While funding is a key piece to the puzzle, it’s not enough to make sure that people have access to broadband — we need to make sure new networks can be built in a timely and cost-efficient manner,” Latta said. “Without changes to the permitting process and meaningful oversight, all of this money set aside for broadband could be wasted.”

The impending rollout of BEAD projects “will lead to much greater demand for permits and approvals that threaten to exacerbate existing backlogs and could undermine a shared national objective of universal connectivity,” said Michael Romano, executive vice president of NTCA—The Rural Broadband Association.

Small network operators already face significant challenges in navigating current permitting procedures, including substantial fees and lengthy delays for relatively minor project components, Romano said.

Increased transparency and communication from federal agencies could greatly aid deployment, said Michael Saperstein, senior vice president of government affairs and chief strategy officer at the Wireless Infrastructure Association.

“What we’re asking for is straightforward — we simply seek a predictable application process, proportionate to the project, that will be decided in a timely manner,” Saperstein said. “And when the answer is ‘no,’ let us know why that is and let’s work together to resolve reasonable concerns.”

Industry leaders highlight pole attachment debate, environmental regulations

Michael O’Rielly, president of MPORielly Consulting and former Federal Communications Commissioner, voiced his support for the “large majority” of the bills being discussed, but argued that “the legislative efforts could go further, especially on pole attachments.”

O’Rielly specifically highlighted the Fair Access to Internet Ready Poles Act, a proposal that would establish FCC oversight over pole attachments, sparked repeated disagreement throughout the hearing.

The bill would “unfairly change the rules of the game after providers have already gone through the complicated and costly process of applying for federal funding,” claimed Louis Finkel, senior vice president of government relations for the National Rural Electric Cooperative Association.

O’Rielly responded that he was “outraged” to see electric utility and co-op organizations “opposing even this moderate step.”

Industry leaders found common ground on several other proposed reforms, such as loosening environmental regulations — which multiple witnesses described as particularly burdensome and often duplicative.

“Streamlined approaches to actions that are known to have minimal environmental impacts will allow agencies to focus their time and resources on proposals that truly do have significant environmental impacts,” Finkel said.

Saperstein agreed, saying that “permitting processes serve a function, but common sense tells us that not every proposed action requires the same amount of scrutiny.”

Biden administration signals cooperation while Democrats urge caution

Although many of the legislative proposals discussed at the hearing were spearheaded by Republicans, O’Rielly noted that “relevant Biden administration officials have wholeheartedly agreed with permitting reform and have outlined additional action that they intend to take.”

But Rep. Frank Pallone, D-N.J., ranking member of the Energy and Commerce Committee, expressed concerns about the majority party’s approach, claiming that Republican lawmakers were proposing solutions without adequately examining the problems.

“I believe that any discussion of these issues that does not include states and municipalities, Tribal representatives, environmental justice communities and other experts with relevant testimony is incomplete,” Pallone said.

Ernesto Falcon, senior legislative counsel for the Electronic Frontier Foundation, also stressed the importance of careful consideration prior to legislative action.

“Past deregulation efforts did not lead to equitable deployment of broadband, but rather gave us digital redlining problems even in areas that were completely profitable to serve in the long run,” he warned.

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Congress

New Congress Faces Key Decisions About Broadband Funding, Infrastructure Priorities and Privacy Law

Broadband access and privacy policies present opportunities for bipartisan collaboration, Broadband Breakfast panelists agreed.

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WASHINGTON, February 9, 2023 — The 118th Congress will have critical opportunities to impact technology policy by reforming the Universal Service Fund, guiding infrastructure priorities and passing federal privacy legislation, said industry experts at a Broadband Breakfast Live Online event last week

Broadband policies present a promising opportunity for bipartisan collaboration, said Marissa Mitrovich, vice president of public policy for the Fiber Broadband Association. “These are the issues that impact every single American, and they’re not a partisan issue — everyone needs access to affordable, reliable broadband.”

The most significant upcoming development to the national connectivity landscape will likely be the infusion of funding from the $42.5 billion Broadband Equity, Access and Deployment Program, expected to be allocated to the states by June 30. Many state entities have raised concerns about the national broadband map that will determine BEAD distribution, with several claiming they lacked the necessary time and resources to adequately challenge the map’s inaccuracies.

“The challenge process is important, but keep in perspective that this first go-around is really for state allocations — it is not the round that will really then determine where it is that’s unserved and underserved,” said Shirley Bloomfield, CEO of NTCA–The Rural Broadband Association.

Bloomfield also cautioned against becoming overly distracted by the “shiny new toy” of federal funding, noting the importance of reforming existing programs to ensure that new networks being built can be sustained and will remain affordable.

“If at the end of the day consumers can’t access and afford those networks, I’m not sure how far we’ve moved the ball forward,” she said.

One key program in need of reform is the Universal Service Fund, a multi-billion-dollar fund that subsidizes basic telecommunications services for low-income households and rural communities. The USF will likely run out of money during 2024, with some even predicting that this will happen during the first quarter of the year, said Grant Spellmeyer, president and CEO of ACA Connects.

Panelists at the Broadband Breakfast Live Online session on February 1, 2023.

“That means that we’re 12 months away from a real problem…There are 16 million households, 55 million Americans relying on that program right now,” Spellmeyer added.

With the future of the program — and the connectivity it provides to millions of people — in jeopardy, Congress may have the chance to play a crucial role in extending the program, Bloomfield said. “All Americans, regardless of where they live, should have access to comparable and affordable services.”

Industry experts disagree over whether fiber should be prioritized

The BEAD program’s prioritization of fiber over other broadband technologies has drawn both praise and criticism. Proponents tout fiber’s superior speeds and longevity, while others argue that emerging technologies should be given a chance to develop.

In November, the National Telecommunications and Information Administration — the Commerce Department agency responsible for administering the BEAD program — came under fire for its stated preference for fiber, which a group of Republican senators said was in “stark contrast to Congress’s tech-neutral intent.”

“Tech neutrality is critical… There are benefits of fiber, fixed wireless, satellite and traditional mobile,” said David Grossman, vice president of regulatory affairs for the Consumer Technology Association, at the Broadband Breakfast event.

“It’s going to take every tool,” Bloomfield agreed, noting that the best technology for any given area would depend on a broad range of factors. However, she emphasized the benefits of deploying fiber when possible. “We have this opportunity, and frankly, shame on us if we don’t actually put in future-proof technology the first time around.”

Fiber infrastructure will also support the rapidly growing demand for symmetrical gigabit speeds, Bloomfield added.

Spellmeyer pointed to a new ACA Connects study making state-by-state predictions for BEAD funding allocation and outlining two national deployment scenarios: a “baseline fiber” approach and a “maximum fiber” approach.

“It’ll be up to governors to decide how they want to approach the allocation of funding, but I think a whole lot of governors can deliver a whole lot of fiber,” Spellmeyer said. “And then there will be opportunities… in very high-cost areas for wireless to play a role as well.”

Mitrovich strongly supported fiber prioritization, noting that “what might be a little bit more investment on the front end is going to really save money in the long run — and create opportunity, whether it’s through jobs, access to healthcare, access to education.”

“We believe fiber is really the most important connectivity technology for consumers and how we’re going to connect America — and the only way this happens is if government and industry work together,” Mitrovich said.

Bipartisan privacy legislation may still have a chance

Although many policy proposals may struggle to gain traction in a politically divided Congress, Grossman was optimistic about the prospect of bipartisan privacy legislation.

“It’s something everybody can relate to, both sides of the aisle, and I think that that was reflected in the fact that we got to a ‘three corners’ bill last year,” he said, referring to the bipartisan House support and Republican Senate support garnered by the American Data Privacy and Protection Act toward the end of 2022.

The primary hurdle that stalled the ADPPA’s passage was its preemption provision, which was fiercely opposed by lawmakers from states with strong preexisting privacy legislation.

Tech associations and industry groups have been generally supportive of state preemption. “It’s very clear that a patchwork of 50 state laws is not workable — it’s burdensome, particularly for startups, [and] confusing for consumers,” Grossman said.

Bloomfield agreed, emphasizing the importance of “a national standard and uniform approach that really treats all online data consistently… so consumers know what their expectations are.”

Another contentious privacy debate at the heart of the ADPPA is whether individuals should be able to sue companies for infractions. The bill’s final version included a narrow private right of action — the product of significant bipartisan compromise.

However, Grossman rejected this agreement, arguing that “private right of action is hugely, hugely detrimental to the industry and to innovation.”

Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. Watch the event on Broadband Breakfast, or REGISTER HERE to join the conversation.

Wednesday, February 1, 2023, 12 Noon ET – What Will the 118th Congress Do on Broadband and Big Tech?

Hampered by a new partisan divide, what will the 118th Congress be able to accomplish in terms of broadband and technology policy? In particular, what do broadband and technology industry groups see as realistic policy priorities under divided government? Many members of Congress want to sharply curb the power of Big Tech, including through a potential national TikTok ban. Another issue left unresolved from last Congress was the state of information privacy legislation. These developments take place against a backdrop of the largest federal investment in broadband ever. Will Congress have anything new to say about infrastructure investment, wireless communication or network neutrality?

Panelists:

  • Shirley Bloomfield, CEO, NTCA–The Rural Broadband Association
  • Grant Spellmeyer, President & CEO, ACA Connects
  • Marissa Mitrovich, Vice President of Public Policy, Fiber Broadband Association
  • David Grossman, Vice President of Regulatory Affairs, Consumer Technology Association
  • Drew Clark (moderator), Editor and Publisher, Broadband Breakfast

Panelist resources

Shirley Bloomfield is CEO of NTCA–The Rural Broadband Association, the premier association representing nearly 850 independent telecommunications companies that are leading innovation in rural and small-town America. With more than 30 years of experience representing the country’s smallest telecom operators, Bloomfield is an expert on the role of federal communications policies in sustaining the vitality of rural and remote communities and the benefits rural broadband networks bring to millions of American families, businesses and the national economy. Bloomfield has a strong track record of leadership in aligning strategic partnerships among rural telecom companies, their larger counterparts, other rural utilities and federal agencies, advancing digital equity and economic opportunities for rural Americans.

Grant Spellmeyer oversees the daily operations and affairs of ACA Connects-America’s Communications Association, a 700-member, non-profit advocacy association dedicated to serving smaller- and medium-sized, independent broadband, phone and video businesses that serve more than 10 million broadband customers nationwide. ACA Connects represents its Members and advocates their concerns before Congress, the Federal Communications Commission, and other agencies in Washington, D.C. Prior to joining ACAC, Grant was vice president of government affairs for US Cellular where his primary duties included directing the federal and state legislative and regulatory efforts across the company’s 21-state operating territory on all policy matters.

Marissa Mitrovich is the Fiber Broadband Association’s vice president of public policy, leading their efforts before Congress, the White House and regulatory agencies in Washington, D.C. She brings more than two decades of experience in governmental affairs and telecom, including previous roles as the vice president of federal legislative affairs for Frontier and vice president of public policy for Verizon, where she interfaced with the administration and worked on state government affairs issues and corporate responsibility initiatives. Mitrovich also brings experience in workforce development and public-private partnerships from her time as vice president of program development for the Wireless Infrastructure Association.

David Grossman serves as vice president of regulatory affairs for the Consumer Technology Association, where he is responsible for representing the association before the FCC, FTC and other government agencies, with a focus on broadband, spectrum policy, cybersecurity and online competition. David spent nearly a decade in public service, including serving as Chief of Staff to FCC Commissioner Mignon Clyburn, Legislative Director and Senior Advisor for Technology Policy to Rep. Anna Eshoo of Silicon Valley, and as Technology Counsel to the U.S. House Small Business Committee under the leadership of Rep. Nydia Velázquez.

Drew Clark (moderator) is CEO of Breakfast Media LLC. He has led the Broadband Breakfast community since 2008. An early proponent of better broadband, better lives, he initially founded the Broadband Census crowdsourcing campaign for broadband data. As Editor and Publisher, Clark presides over the leading media company advocating for higher-capacity internet everywhere through topical, timely and intelligent coverage. Clark also served as head of the Partnership for a Connected Illinois, a state broadband initiative.

Graphic courtesy of Digital Trends Media Group

WATCH HERE, or on YouTubeTwitter and Facebook.

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

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New Leadership and Priorities for Republican-Led Energy and Commerce Committee

The new chair renamed three subcommittees, hinting at the GOP’s goals for the coming term.

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Photo of Rep. Cathy McMorris Rodgers in 2018 by Gage Skidmore, used with permission

WASHINGTON, January 27, 2023 — Rep. Cathy McMorris Rodgers, R-Wash., recently named chair of the House Energy and Commerce Committee, announced on Wednesday the new Republican leadership and membership of each subcommittee, giving insight into which members of Congress will be at the forefront of key technology decisions over the coming term.

McMorris Rodgers also announced changes to the committee’s structure, renaming three subcommittees and shifting some of their responsibilities. The changes aim to “ensure our work tackles the greatest challenges and most important priorities of the day, including lowering energy costs, beating China and building a more secure future,” McMorris Rodgers told Fox News.

Rep. Frank Pallone, Jr., D-N.J. — now the committee’s ranking member after serving as chair for the past four years — announced on Friday each subcommittee’s Democratic membership and leadership, and named Rep. Kim Schrier, D-Wash., as the vice ranking member for the full committee.

Rep. Kelly Armstrong, R-N.D., who will serve as the committee’s vice chair, is a vocal critic of Big Tech. In 2021, he was one of several Republicans who championed major reforms to Section 230 of the Communications Decency Act.

The committee’s new names hint at some of the ways that the committee’s priorities may shift as Republicans take control. The former Consumer Protection and Commerce Subcommittee is now titled the Innovation, Data and Commerce Subcommittee and will be chaired by Rep. Gus Bilirakis, R-Fla., alongside Ranking Member Jan Schakowsky, D-Ill.

Bilirakis and McMorris Rodgers have already announced the subcommittee’s first hearing, which will focus on U.S. global technology leadership and competition with China.

The Communications and Technology Subcommittee, now led by Chair Bob Latta, R-Ohio, and Ranking Member Doris Matsui, D-Calif., also emphasized competition with China in the announcement of a hearing on the global satellite industry.

Latta has previously spoken out against the total repeal of Section 230, but he has also expressed concerns about the extent to which it protects tech companies. In an April 2021 op-ed written jointly with Bilirakis, Latta accused social media platforms of engaging in “poisonous practices… that drive depression, isolation and suicide.”

The Environment, Manufacturing and Critical Minerals Subcommittee, formerly known as the Environment and Climate Change Subcommittee, will be led by Chair Bill Johnson, R-Ohio and Ranking Member Paul Tonko, D-N.Y.

The Energy Climate, and Grid Security Subcommittee, formerly known as the Energy Subcommittee, will be led by Chair Jeff Duncan, R-S.C., and Ranking Member Diana DeGette, D-Colo.

The Health Subcommittee will be led by Chair Brett Guthrie, R-Ky., and Ranking Member Anna Eshoo, D-Calif. The Oversight and Investigations Subcommittee will be led by Chair Morgan Griffith, R-Va., and Ranking Member Kathy Castor, D-Fla.

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