Congress Passes and President Trump Signs Monumental Reconciliation Bill – Telecommunications Operators and Policy Are Impacted

Congress Passes and President Trump Signs Monumental Reconciliation Bill – Telecommunications Operators and Policy Are Impacted

On July 4, 2025, President Trump signed into law H.R. 1 entitled “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14,” also known as “Trump’s One Big Beautiful Bill Act” or “OBBBA.” This bill was the result of the budget reconciliation for fiscal year 2025. The 870-page OBBBA contains significant changes to federal policy, including marquee tax provisions that will impact telecommunications operators. JSI will provide further insight into the OBBBA as policies are formalized within the Executive Branch. The following items below are of significance to telecommunications providers:

OBBA Business Tax Provisions

OBBBA’s tax provisions provide relief for telecommunications operators by allowing immediate write-offs of infrastructure investments, significantly reducing the after-tax cost of network buildouts and equipment purchases.

• Extends 100% bonus depreciation for qualified property acquired and placed into service after January 19, 2025, and before January 1, 2030 (and before January 1, 2031, for certain property with longer production periods).
• Provides for an elective 100% depreciation allowance for nonresidential real property that meets certain requirements. (Some limitations apply.)
• Increases section 179 deductions to $2.5 million (up from $1.25 million in 2025 and adjusted annually for inflation) the maximum amount that may be deducted (expensed) for certain depreciable business assets. This section also increases to $4 million (from $3.13 million in 2025 and adjusted annually for inflation) the dollar amount at which the tax deduction begins to phase out. Both amounts continue to be annually adjusted for inflation.
• Terminates qualified commercial clean vehicle tax credit. Under previous provisions, businesses were eligible to claim a tax credit of up to $40,000 for the purchase of a commercial clean vehicle before 2033.

Of significant note, the OBBA does not include tax relief for federal grants received by operators to build telecom and broadband networks. However, the 100% bonus depreciation extension may effectively eliminate the tax impact of grant funding for qualifying infrastructure investments made during the applicable time periods.”

OBBBA Telcom Policies

The OBBBA directly impacts the telecommunications sector by restoring the Federal Communications Commission’s (FCC) ability to conduct spectrum auctions through September 30, 2033, ending a two-year gap that began when the authority expired in March 2023. The renewed grant of authority, alongside additional spectrum mandates, signals Congressional intent to incorporate increased wireless and satellite technologies in our Nation’s telecommunications and information infrastructure. These changes create new opportunities for fixed wireless expansion while potentially increasing competitive pressure satellite providers entering rural markets.

Under the new requirements, the National Telecommunications and Information Administration (NTIA) must identify at least 600 megahertz of spectrum in the 1.3 to 10 gigahertz range currently held by federal agencies and make it available for commercial wireless and broadband use through FCC auctions. The FCC will have specific deadlines to complete these auctions with at least 200 megahertz required to be auctioned within three years of the law’s enactment, with all remaining identified spectrum auctioned within six years. This process will significantly expand the amount of spectrum available to telecommunications providers for both mobile and fixed broadband services, though certain frequencies used by the Department of Defense and for unlicensed services like Wi-Fi are excluded from the auction requirements.

The restoration of FCC spectrum auction authority, and the subsequent auction timelines, align with FCC Chairman Carr’s policy priorities. In a July 2, 2025 speech, Chairman Carr emphasized the need to “restore America’s leadership in wireless” by freeing up spectrum, noting that “freeing up spectrum creates jobs, it increases competition, it drives down prices for consumers.” Chairman Carr has also stated his intention to “boost the U.S. space economy” and ensure that “U.S. businesses dominate in orbit.” The restored spectrum auction authority enables both of these policy goals. JSI expects significant FCC activity to increase spectrum availability for enhanced 5G services and preparation for emerging 6G technologies.

Low-Income Policy Changes

The OBBBA makes changes to the Supplemental Nutrition Assistance Program (SNAP) and other low-income benefit programs, including prohibiting household internet costs from being counted when calculating SNAP benefit amounts. Since some low-income households qualify for federal Lifeline telecommunications support through these programs, providers serving these communities may see changes in their customer base. Given the potential impact on rural and low-income customers, JSI recommends that providers monitor FCC proceedings regarding Lifeline eligibility criteria and consider participating in advocacy efforts to maintain accessible qualification pathways for vulnerable populations.

National Environmental Policy Act (NEPA)

The OBBBA modifies the Environmental Policy Act of 1969 (NEPA) review process by allowing providers and other project developers to pay fees for expedited environmental assessments and environmental impact statements while eliminating certain administrative and judicial review requirements. This expedites the process by creating a fee-for-service option that guarantees faster turnaround times and reduces lengthy interagency reviews that further delay deployments. While more comprehensive federal permitting reform is needed, this provision represents progress toward streamlining regulatory processes that affect telecommunications infrastructure deployment. JSI is actively participating in related federal efforts to reduce permitting burdens on infrastructure projects, including recent submissions to the Department of Interior’s deregulation proceedings.

While the OBBBA will impact all facets of the economy, the provisions outlined above will directly affect telecommunications and broadband operators through enhanced tax incentives, increased spectrum availability, and streamlined environmental review processes. As these changes are implemented over the coming months, providers should evaluate how these provisions align with their strategic planning, infrastructure investment timelines, and competitive positioning. JSI will continue monitoring regulatory developments and implementation guidance as agencies finalize the operational details of these new requirements.

For assistance with tax planning strategies, spectrum auction participation evaluation, NEPA compliance guidance, or general strategic planning in light of these legislative changes, please contact JSI at info@jsitel.com. Our team can help you navigate the implementation of these provisions and assess their specific impact on your operations.