Carr, House Democrats Clash on Verizon-Frontier Approval After DEI Concessions
FCC Chairman Brendan Carr faced pushback Wednesday from Democrats on the House Appropriations Financial Services Subcommittee about the legality of the commission’s pressure campaign against communications sector companies’ diversity, equity and inclusion programs and over the agency’s workforce reductions. Subpanel Republicans spun in favor of the FCC’s efficiency and highlighted other actions the commission has taken since Carr became chairman Jan. 20.
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Carr particularly clashed with ranking member Steny Hoyer and Rep. Glenn Ivey, both D-Md., over how much the FCC Wireline Bureau based its approval last week of Verizon’s $20 billion purchase of Frontier on the carrier agreeing to end its workforce equity programs (see 2505160050). The FCC moved relatively quickly to approve the deal, which had been pending only since September (see 2409050010). Carr first pressed Verizon on its DEI programs in February (see 2502270072).
Ivey asked Carr whether he reviewed “any particular allegations against Verizon before you sent” the February letter, including “any court cases [or Equal Employment Opportunity Commission] complaints.” It’s “a big step … 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.
Hoyer suggested the motivation for a lengthier review of the Frontier deal “went away as soon as Verizon settled with you on the DEI” issue. “Within three hours, the decision was made that the merger is OK,” he said. “Why should the government, through the FCC, pressure Verizon to do away with the policy? They may well think it's in its best interest and its customers’ best interest.”
Carr pushed back against Hoyer and Ivey, in part saying the FCC’s process for evaluating Verizon-Frontier and delegating final approval to the Wireline Bureau “was a regular process. Under Democrat leadership, we have approved large deals at the bureau level, including Altice-Cablevision, which was a $17 billion deal.” He emphasized that the FCC “did not apply a standard that would require” a formal investigation and that the review complied with “rules on our books that deal with” equal employment opportunity.
Carr also drew skepticism over the FCC’s efficiency push, including his announcement in written testimony ahead of the hearing (see 2505200058) about cuts to the agency's workforce since he became chairman. Hoyer zeroed in on Carr’s claim last week that the FCC reduced “authorized contract spending ceiling amount by more than $567 million” (see 2505140044). “What you're essentially saying is $510 million of [the $567 million] is prospective and speculative” rather than actual spending cuts for FY 2025, Hoyer said. Carr said he didn't “mean to mislead on the numbers, [which] speak [to] a contract ceiling number, which people can debate the significance of.”
But House Appropriations Financial Services Chairman Dave Joyce of Ohio and other Republicans praised Carr for the spending cuts and additional FCC efficiency drives. Joyce said he’s “encouraged by [Carr’s] efforts to identify and remove unnecessary regulations that inhibit innovation and economic growth [and] concrete steps to streamline agency processes and eliminate wasteful spending.” The legislator highlighted the FCC’s “Delete, Delete, Delete” proceeding “on regulatory changes that will facilitate and encourage investment in modernizing networks, developing infrastructure, and promoting competition.”
Hoyer questioned Carr’s reporting that the FCC had 78 fewer employees as of April 28 than it did when FY25 began Oct. 1, 2024. Carr clarified that the number of FCC employees at the end of April was actually a net 65 fewer than the 1,448 who worked there when he took over Jan. 20, but he noted that figure factored in some staff hires. The departures included 67 staff who left in response to the White House OMB’s “Fork in the Road” resignation offer in January and 26 who “took advantage of” an existing FCC early retirement window, Carr said.