Yesterday, former Baltimore Mayor Catherine Pugh was sentenced to 3 years in prison and 3 years probation for a scandal involving books that she wrote and sold. Pugh sold books to the University of Maryland Medical System but never delivered them. She also sold books to Kaiser Permanente that were also never delivered. Not coincidentally, Kaiser received a sweet city contract for $48 million. So, basically, the book was a way for people to funnel her money and win contracts. On top of that, she didn’t pay the necessary taxes on her phony book sales. Now, to top it all off, former Baltimore Mayor Sheila Dixon who pleaded guilty to previous misdeeds is running again for mayor. You really don’t need to watch The Wire to see drama in Baltimore. Stay tuned as TPA continues to follow and analyze the latest developments in Charm City.
C-Band and White Spaces: Closing the Digital Divide AND Protecting Taxpayers
I wrote this Weekly Update on a very reliable and fast internet connection. I am spoiled because many folks don’t have access to fast broadband service. The Federal Communications Commission (FCC) is trying to fix that, having voted today to bring faster internet to the whole country. At its February 28 Open Meeting, the agency approved a public auction of critical “C-band” spectrum and permitted the harnessing of “TV white spaces” for wireless access. This powerful one-two punch will prove pivotal in providing digital opportunities for millions of Americans and protect taxpayers by requiring very little taxpayer money to deploy. In fact, the C-Band spectrum auction could bring in tens of billions of dollars into the Treasury. By moving forward with the C-Band auction and TV white spaces, the FCC has set the stage for universal internet access and is putting the “digital divide” in the rearview mirror.
Special interests engage in endless turf wars and convince policymakers to embrace half-baked policy plans that thwart the ambitions of households across the country. Case in point: the battle over a special sliver of spectrum known as the C-band. This goldilocks chunk of bandwidth is critical to 5G broadband access, which promises internet speeds at least 10 times faster than the often-faulty status-quo. Typically, spectrum is awarded to the highest bidder in an FCC-led public auction. This proven process ensures that bandwidth flows to highly valued uses, while taxpayers (who ultimately own spectrum in the U.S.) are justly compensated. Despite the resounding success of more than 100 spectrum auctions held by the FCC over the past twenty-five years, a group of satellite companies called the “C-Band Alliance” tried to hijack the process and divert the proceeds to themselves in an opaque “sale.” This perilous shift into uncharted legal waters would’ve been tied up in litigation for years, but Chairman Pai wisely opted to go the way of a public auction that is expected to take place this year in an expedited manner. Now, the C-Band Alliance is no more, and the FCC is embracing a transparent, streamlined process for C-band use. Sure, incumbent satellite users of the C-band will continue to quibble over compensation, but taxpayers and consumers can rest easy knowing that 5G deployment is at hand.
Today’s vote has also ensured the availability of TV white spaces for internet use across rural America. These unused slivers of spectrum between television stations can bolster the digital domain, but only with the right set of rules. Until today, the devices capable of harnessing white spaces for internet access could only operate at up to 10 watts of power (around the intensity of an old light fixture). Allowable antenna heights for white space devices were only 250 meters, which according to some experts, isn’t high enough for adequate signal strength. The FCC voted to relax these restrictions today, as commissioners doubled the allowable antenna height and increased white space devices’ power limit to 16 watts.
No one reform will close the digital divide by itself, but the agency has and can continue to pursue ideas piecemeal, complementing policies that improve internet access. Today marks the start of a bold, new era of internet access made possible by the C-band and TV white spaces. Closing the digital divide and protecting taxpayers is a true “win-win” situation.
FDA Foot-Dragging on Coronavirus Response
The coronavirus is coming but the federal government’s response remains lackluster considering the unique threats posed by the soon-to-be-pandemic. Bizarrely, the Food and Drug Administration (FDA) is refusing to green-light U.S. labs’ attempts to test for the life-threatening illness thereby prompting plenty of criticism and angry letters. The Association of Public Health Laboratories is begging the agency for permission to develop tests for the virus, but these cries have been met with persistent foot-dragging. The FDA’s frustrating risk-aversion is nothing new, and things will not change absent a wholesale reevaluation of the FDA’s mission. Taxpayers and consumers cannot wait for bureaucrats’ delay tactics in combatting deadly diseases. This is unfortunately par for course. The Food and Drug Administration’s (FDA) track-record in approving new products and testing procedures just isn’t all that good. The cost to bring a new medication to market is now more than $2 billion and patients have to wait more than a decade to see life-saving drugs become available. Even if the FDA does finally get around to approving coronavirus testing, drug development to defeat the disease will prove prohibitively pricey thanks to agency regulations.
There are also plenty of drugs under FDA evaluation for common diseases and afflictions, and overall, the process remains far too difficult for manufacturers to get their products to patients. Take, for example, the struggle of manufacturer AstraZeneca to get a new inhaler approved to treat chronic obstructive pulmonary disease (COPD). Already approved in Japan, the medication promises significant relief from a disease that has no cure. Plenty of evidence has been produced showing that the experimental triple combination inhaler improves lung function and reduces flareups. But the FDA likely rejected the drug because the most compelling evidence for PT010’s effectiveness came after AstraZeneca submitted their application to the agency. In other cases, the FDA will seem to agree that the drug under evaluation is safe and effective, but have some other, minor nitpick that sets the medication back months or years. In June 2018, Valeant Pharmaceuticals announced they received a “Complete Response Letter” (read: rejection) from the FDA for their medication (Duobrii) designed to treat plaque psoriasis. Never mind that the drug had demonstrated its safety and effectiveness in two, large-scale peer-reviewed studies with more than 400 participants total. The FDA “noted questions regarding pharmacokinetic data” and delayed approval until April 2019.
Clearly, the FDA sees no urgency in approving medications and tests that are safe and effective in improving millions of lives. The agency should certainly reevaluate its regulatory approach and the current coronavirus catastrophe offers a prime opportunity. The FDA can be force for good but only by letting innovators get life-saving medications and tests to market.
Blogs:
Monday: Labor Department pursues Obama era agenda with opaque methods
Tuesday: Train Regulation Threatens to Derail Family Finances in Virginia
Wednesday: Watchdog Praises FCC Reforms on Fifth Anniversary of Open Internet Order: Title II Repeal Death Count Remains at Zero
Thursday: TPA Sends Letter to Congress Opposing Reversing the Youth Tobacco Epidemic Act
Media:
February 24, 2020: I appeared on WBOB Radio (600 AM and 101 FM; Jacksonville, Fla.) to talk about Bernie Sanders and his spending proposals.
February 24, 2020: I appeared on KCOL (600 AM; Denver, Col.) to talk about Obama vs. Trump on economic growth.
February 24, 2020: The Washington Examiner ran TPA’s op-ed, “Taxpayers beware: Republicans have their own green dreams.”
February 25, 2020: Inside Sources ran TPA’s op-ed, “Smart Use of Unlicensed Spectrum Key to Closing the Digital Divide.”
February 25, 2020: RealClearMarkets ran TPA’s op-ed, “Taxpayers Beware: GOP Has Own Green Dreams.”
February 26, 2020: TPA Senior Fellow Jeff Stier appeared on “Tucker Carlson Tonight” (Fox News Channel) to talk about the World Health Organization and the spread of the coronavirus.
February 27, 2020: WBFF (Fox, Baltimore) interviewed me about the sentencing of former Baltimore Mayor Catherine Pugh.
February 27, 2020: The Center Square ran TPA’s op-ed, “C-Band, white spaces pack powerful one-two punch for closing the digital divide.”
February 27, 2020: The American Conservative ran TPA’s op-ed, “Why Is the FDA Stalling on More Coronavirus Testing?”
February 28, 2020: Issues & Insights ran TPA’s op-ed, “USA Investments Can Save The American Dream For Millions Of Workers.”
Have a great weekend, and as always, thanks for your continued support.
Best,
David Williams
President
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org
