Senate Committee Votes To Advance Commerce Nominee Howard Lutnick

Commerce Committee Chairman Ted Cruz told Broadband Breakfast he was 'certain there will be' changes to BEAD.

Senate Committee Votes To Advance Commerce Nominee Howard Lutnick
Screenshot of Senate Commerce Committee Chair Sen. Ted Cruz, R-Texas, and Ranking Member, Sen. Maria Cantwell, D-Wash.

WASHINGTON, Feb. 5, 2025  – In a contentious decision, the Senate Commerce Committee voted 16-12 on Wednesday to advance Howard Lutnick’s nomination for Secretary of Commerce.

If confirmed by the full Senate, Lutnick, CEO of Cantor Fitzgerald, will lead the agency responsible for key tech and telecom programs, including the $42.5 billion Broadband Equity, Access, and Deployment program and the approximately $280 billion CHIPS and Science Act. 

Following the committee vote, Senate Commerce Committee Chairman Ted Cruz, R-Texas, told Broadband Breakfast that he expects changes to BEAD’s fiber preference and broader program requirements. “I’m certain there will be [changes to the program],” Cruz said. “Obviously, Lutnick has to be confirmed by the full Senate. I expect that he'll be confirmed as Commerce Secretary next week.”

“I fully expect the new administration is going to reverse those lawless efforts by the Biden administration,” Cruz told Broadband Breakfast.

On CHIPS and Science Act funding, Cruz maintained to Broadband Breakfast that Republican support remains strong but criticized what he called “lawless conditions” imposed by the Biden administration. “They took a bipartisan statute that Congress had passed and they decided… to try to force the recipients of those funds to adopt a series of left wing policies,” Cruz said. He cited the requirement for semiconductor companies to provide child care as an example, arguing that “there wasn’t a word in the CHIPS and Science Act about that.”

Lutnick’s approach to the BEAD broadband expansion program has been a key concern for lawmakers and industry leaders, particularly after his Senate confirmation hearing on Jan. 29, where he stopped short of guaranteeing that state broadband spending plans approved under the Biden administration in Louisiana, Nevada, and Delaware would remain intact. 

Lutnick's comments then suggested he would be open to revising the program’s rules in line with Republican priorities, including a stronger embrace of satellite and fixed wireless broadband.

“Let’s use satellites, let’s use fixed wireless, let’s use fiber — let’s do it the cheapest, most efficient way we can,” Lutnick said during his hearing, echoing calls from Republican leaders. 

Ranking Member Sen. Maria Cantwell, D-Wash., expressed concern about Lutnick’s confirmation during the confirmation vote. “Mr. Lutnick in various answers to the committee did not give full commitment to making sure money continues to go out the door. I was looking for a stronger commitment,” Cantwell said.

“I hope that we will be proven wrong. But today, my advice and consent is not to vote for Mr. Lutnick,” Cantwell said. She highlighted the CHIPS and Science Act, stressing that Lutnick did not provide firm assurances regarding the continued disbursement of funds.

Lutnick’s confirmation follows months of GOP criticism of the BEAD program’s preference for fiber broadband, as well as other requirements added on by the Biden administration, including climate change regulations and labor and union mandates. 

During the hearing, Senate Majority leader John Thune, R-N.D., criticized BEAD’s timeline. “The BEAD program, which passed over three years ago, hasn't put out a single dollar of assistance to a single provider of telecom services in rural areas. Why? Because the Biden administration modified the statute and added a bunch of conditions that nobody could meet.”

Arielle Roth, expected to become the next head of the National Telecommunications and Information Administration, the agency within the Commerce Department overseeing BEAD, has already made her stance clear, having previously criticized BEAD’s fiber preference, low-cost mandates, and additional regulatory requirements as a “woke social agenda” that “divert[s] resources away from the overall goal of closing broadband gaps”

Meanwhile, Republicans’ stance on the CHIPS Act remains to be seen, with mixed signals coming from key party leaders. President Donald Trump criticized the legislation during his campaign, threatening to abandon it entirely, while House Speaker Mike Johnson initially stated that Republicans 'probably will' attempt to repeal the Act. Johnson later walked back his comments, suggesting that the party might instead focus on streamlining its provisions by cutting what he called "costly regulations."

With the full Senate vote on Lutnick’s confirmation expected next week, the debate over the future of BEAD and CHIPS funding continues. While Republicans appear poised to reshape these programs, their overall continuation seems assured, albeit with significant policy shifts.

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