Carr Pressed Over FCC’s ‘Speculative’ Savings as No Budget Request Submitted

WASHINGTON, May 21, 2025 – FCC Chairman Brendan Carr faced bipartisan scrutiny Tuesday over his widely touted $567 million in agency “savings,” as lawmakers said only $27.8 million would be realized over the next two years.

During an oversight hearing before the House Appropriations Committee, Chairman Dave Joyce, R-Ohio, and Rep. Steny Hoyer, D-N.Y, pressed Carr on the substance behind the savings claim. Carr ultimately acknowledged that the bulk of the figure was based on projected contract ceiling reductions, not actual spending cuts.

“As I understand that, what you're essentially saying is $510 million of that [$567 million] is prospective and speculative... Is that accurate?” Hoyer asked Carr.

“I don't mean to mislead on the numbers,” Carr responded. “The numbers speak [to] a contract ceiling number, which people can debate the significance of. That’s fine.”

When Rep. Steve Womack, R-Ark., asked when Congress could expect to see the FCC’s fiscal year 2026 budget request, Carr replied, “I have no news to break on the timing.” The FCC has not yet submitted a formal funding proposal, an unusual omission for an oversight hearing focused in part on agency operations and expenditures.

Carr emphasized that the FCC was currently operating under a $390 million continuing resolution, plus spectrum auction funds, and insisted the FCC remains on “very stable, comfortable financial footing.” Carr added he would be “comfortable with wherever the number lands” between the White House and Congress.

Carr emphasized the FCC’s focus instead remains on reducing full-time employees, trimming contract ceilings, and operating within its existing budget – aligning with the Trump administration’s austerity posture and  signaling a “do more with less” approach.

He pointed to a reduction in FCC staffing as evidence of increased efficiency, noting that the FCC’s headcount dropped from 1,461 at the start of fiscal year 2025 to around 1,383 by the end of April. 

“That delta is explained by natural attrition, some taking voluntary early retirement under programs opened up by my predecessor,” Carr said, under questioning from Hoyer. He noted that 26 employees accepted early retirement and 21 retired normally. Carr said that some hiring also occurred during that same period, including in the chairman’s office.

Lawmakers also zeroed in on Carr’s February letter accusing Verizon of “invidious discrimination” for its diversity, equity, and inclusion policies, and the FCC’s subsequent approval of Verizon’s $20 billion merger with Frontier on the day after the company said it had complied with Carr’s demand. 

Rep. Glenn Ivey, D-Md., challenged Carr on whether the agency conducted any formal investigation before making such a serious allegation. 

“When you allege invidious discrimination based only on that one training class, and use it in a way to leverage or essentially block a $10 billion transaction that the FCC ultimately held was in the best interest of the American people for a variety of reasons,” Ivey said, “that's a big step.”

“Did you review any particular allegations against Verizon before you sent this letter? Any court cases? Any EEOC [Equal Employment Opportunity Commission] complaints?”

Carr deflected, stating that the FCC had “rules on our books that deal with [equal employment opportunity]” and that he was aware of public materials. When asked whether a formal investigation into such actions were appropriate, Carr said the agency “followed the FCC process” and “did not apply a standard that would require that level of investigation.”

Hoyer also questioned the timing: “The motivation [to stall the merger] went away as soon as Verizon settled with you on the DEI,” he said. “Within three hours, the decision was made that the merger is okay.”

Carr defended the process as typical, stating: “It was regular process. Under Democrat leadership, we have approved large deals at the bureau level, including Altice-Cablevision, which was a $17 billion deal.”