The Incentive Auction Task Force and the Media Bureau announced the issuance Monday of an initial allocation of the TV Broadcaster Relocation Fund in the total amount of $1 billion. It will begin reimbursing eligible full power and Class A broadcasters and multichannel video programming distributors (MVPDs) for expenses related to the construction of station facilities on reassigned channels. The Bureau will continue to monitor closely, the draw-down of Fund amounts and allocate additional amounts later in the transition period.
The Spectrum Act requires the Commission to “reimburse costs reasonably incurred” by broadcast television licensees and by MVPDs that are involuntarily reassigned to new channels as a result of the repacking process. In doing so, the Commission intends to be a prudent steward of taxpayer money by carefully evaluating cost estimates and invoices when administering the Fund to prevent waste, fraud, and abuse.
The Commission decided to allocate funding in tranches, including an initial allocation to help stations cover upfront expenditures (such as planning, engineering studies, etc.), equipment down payments, and other ancillary charges. This approach seeks to “provide broadcasters with access to the funding necessary to timely begin their relocation work while avoiding undue financial burden,” according to the FCC statement. Making allocations in more than one tranche also takes into account that the estimates of many broadcasters may change over time as they move forward with planning, provisioning, and construction.
As the Commission has noted, “this approach should ensure that broadcasters and MVPDs do not face an undue financial burden while also reducing the possibility that we allocate more funds than necessary to cover actual relocation expenses.”
October 18, 2017
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