The FirstNet contract is a 25-year public-private agreement between the First Responder Network Authority and AT&T, awarded on March 30, 2017 and valued at $6.5 billion with a $100 billion ceiling, to build and operate the first nationwide wireless broadband network dedicated to public safety.1FirstNet Authority. History of FirstNet2Department of Commerce OIG. FirstNet Authority Eligibility Verification Audit It runs through 2042, gives AT&T exclusive access to the 700 MHz Band 14 spectrum reserved for first responders, and was renegotiated in March 2026 in a $2 billion agreement-in-principle that reshapes how the money flows for the remainder of the term.3NTIA. Secretary Lutnick and AT&T Agree to $2 Billion Deal
What the Contract Actually Covers
The Middle Class Tax Relief and Job Creation Act of 2012 created the FirstNet Authority as an independent entity within the National Telecommunications and Information Administration, part of the Department of Commerce, and reallocated 20 MHz in the 700 MHz band, known as Band 14, exclusively for public safety broadband.4Congress.gov. Middle Class Tax Relief and Job Creation Act of 20125Anritsu. FirstNet Technology Overview After an objectives-based procurement launched in January 2016, the Authority selected AT&T, whose team also included Motorola Solutions, General Dynamics, Sapient Consulting, and Inmarsat Government.6GAO. FirstNet RFP and Selection Process
AT&T is the only carrier with access to Band 14. When the network locks that spectrum down during emergencies, only FirstNet subscribers can use it, and they do not compete with commercial traffic for capacity. Outside lockdown mode, first responders still get always-on priority and preemption across AT&T’s commercial LTE and 5G bands.7FirstNet, Built with AT&T. Band 148Fierce Network. FCC Hands Big Win to FirstNet and AT&T in 4.9 GHz Battle9RCR Wireless. FCC Grants FirstNet Use of 4.9 GHz, Dealing a Blow to Verizon
How the Money Moves
Money runs both ways under the contract. The government pays AT&T through milestone payments tied to nationwide public safety device connection targets. As of April 2026, AT&T had received about $6.47 billion of the $6.5 billion in milestone payments. If AT&T misses connection targets, the contract requires disincentive payments back to the government, capped at $3 billion over the remaining life of the deal.2Department of Commerce OIG. FirstNet Authority Eligibility Verification Audit
In the opposite direction, AT&T owes $18 billion in sustainability payments to the FirstNet Authority over the 25-year term. Roughly $3 billion or less covers FirstNet’s operating expenses, and about $15 billion is expected to flow back into the network. AT&T’s filings show $420 million paid through 2025, $896 million due in 2026, a peak of $1.66 billion in 2028, and $9.32 billion due after 2030.10SEC. AT&T Contractual Commitments A January 2024 amendment adjusted payment timing while preserving the $18 billion total, and the FirstNet Authority agreed to reinvest up to $6.3 billion over ten years to accelerate the network’s move to 5G. By law, all fees collected must be reinvested into the network, subject to NTIA Assistant Secretary approval. The Authority approved a $684 million budget for fiscal year 2025, with $534 million earmarked for coverage and emerging technologies.11FirstNet Authority. FY 2024 Financial Report
What AT&T Has Built
AT&T completed the initial nationwide buildout in 2023, finishing all required original cell sites nine months ahead of schedule. Under a separate 10-year, $8 billion initiative launched in 2024, the company has added 1,000 new cell sites across 46 states and Washington, D.C.12Wireless Estimator. AT&T’s CapEx Surge Coupled With FirstNet13FirstNet Authority. FirstNet Authority to Expand Network14AT&T. FirstNet Expands Coverage
As of early 2025, the network had surpassed 7 million public safety connections and covered more than 2.99 million square miles across all 50 states, five territories, and D.C.14AT&T. FirstNet Expands Coverage15Congressional Research Service. FirstNet Reauthorization and Network Status16AT&T. AT&T Satellite Successes17FirstNet, Built with AT&T. Satellite Connectivity
Where Oversight Has Failed
Lawmakers have flagged 21 Office of Inspector General reports over the past 12 years raising concerns about coverage, contract changes, network performance, and whistleblower retaliation.18Light Reading. FirstNet Under Fire as Congress Moves for More Oversight Three recent audits have hit hardest.
A June 2024 audit found the FirstNet Authority never developed measurable performance standards to verify that AT&T’s reported device connections complied with the law and contract. When AT&T struggled to meet targets, the Authority modified the contract to lower them. Working files from subject-matter expert reviews were routinely deleted, leaving no audit trail, and the OIG warned the government risked paying for services not received while AT&T might avoid required disincentive payments.19Department of Commerce OIG. FirstNet Authority’s Lack of Contract Oversight for Device Connection Targets
An April 2026 audit found the Authority had effectively delegated user eligibility verification to AT&T and a third-party service without independent checks. The October 2024 subscription report contained roughly 96,000 records with missing, incorrect, or non-public-safety agency names, including a church and a dermatology clinic. AT&T’s own internal eligibility policy defined “extended primary users” to include broadcasting, education, and IT sectors, which conflicted with contract requirements. The OIG questioned recent milestone payments as unsupported and flagged potential uncollected disincentive payments of up to $242.6 million. The report issued 11 recommendations, and NTIA concurred with all of them.2Department of Commerce OIG. FirstNet Authority Eligibility Verification Audit
A companion April 2026 audit examined the contract’s 99.99% end-to-end service availability requirement and found the measurement approach covered only a fraction of the 3-million-square-mile footprint. The monitoring system failed to detect or report an 11-day outage during the 2023 Maui wildfires and missed widespread outages in Florida, North Carolina, and Tennessee in March 2023. The Authority did not independently verify AT&T-provided availability data, had not used liquidated damages clauses for non-compliance, and took six months to issue a corrective action report after a major February 2024 nationwide outage.20Department of Commerce OIG. FirstNet Authority Service Availability Audit
That February 2024 outage remains the highest-profile failure. An AT&T employee misconfigured a new network element during a maintenance window, triggering a nationwide outage across all 50 states, D.C., Puerto Rico, and the U.S. Virgin Islands. The FCC found more than 125 million devices were affected, more than 92 million voice calls were blocked, and more than 25,000 calls to 911 centers were prevented. FirstNet infrastructure came back online by 5:00 AM, but customers were not notified until 5:53 AM, more than three hours after the outage began.21FCC. AT&T February 2024 Outage Report An OIG management alert found 9 of 10 public safety agencies interviewed were never notified of the outage by AT&T or the FirstNet Authority.22Department of Commerce OIG. February 2024 Outage Management Alert The FCC referred the matter to its Enforcement Bureau for potential rule violations.
The 2026 Renegotiation
On March 31, 2026, Commerce Secretary Howard Lutnick announced a $2 billion agreement-in-principle to revise the contract framework, driven by a cost-efficiency initiative launched under a Trump administration executive order directing agencies to review contracts for maximum taxpayer value.3NTIA. Secretary Lutnick and AT&T Agree to $2 Billion Deal
AT&T agreed to reduce costs borne by the FirstNet Authority by approximately $1 billion, freeing those funds for reinvestment in a dedicated public safety 5G core. AT&T will also invest approximately $1 billion in new network and coverage enhancements, with the FirstNet Board directing that money toward additional cell sites, in-building coverage, and deployable assets based on first responder priorities.3NTIA. Secretary Lutnick and AT&T Agree to $2 Billion Deal23StateScoop. Commerce, AT&T Reach $2 Billion FirstNet Deal
Competitor Pushback
The single-carrier structure has drawn persistent criticism. Verizon argues the model “entrenches monopoly” and creates a single point of failure, and both Verizon and T-Mobile contend that federal funds, including the $18 billion AT&T is required to pay through 2042, should benefit broader public safety infrastructure rather than exclusively upgrade one carrier’s network.18Light Reading. FirstNet Under Fire as Congress Moves for More Oversight
Both carriers have built competing offerings. T-Mobile launched T-Priority in late 2024, using standalone 5G network slicing to give first responders a dedicated quality-of-service level. T-Mobile says it serves roughly 2 million public safety customers and recently became the primary connectivity provider for New York City’s approximately 40,000 first responders.24Light Reading. T-Mobile Boasts Network Slicing Progress With First Responders Verizon Frontline, established in 2018, offers automatic priority and preemption and has begun rolling out 5G network slicing in select markets, serving 45,000 public safety agencies according to Verizon’s testimony.18Light Reading. FirstNet Under Fire as Congress Moves for More Oversight
AT&T describes FirstNet as an “all-band, purpose-built solution” backed by dedicated Band 14 spectrum and a physically separate public safety core, not a partitioned section of a commercial platform. Analysts note that AT&T itself had not yet deployed 5G standalone network slicing on FirstNet as of mid-2025, leaving competitors with a technology head start even as AT&T retains the spectrum and contract advantages.25Fierce Network. T-Mobile, Verizon Duke It Out on 5G Public Safety Slices
The February 2027 Reauthorization Cliff
The FirstNet Authority’s statutory authorization expires in February 2027. GAO has warned that without reauthorization, no federal entity is designated to oversee the network, manage the contract, collect and reinvest fees, or hold the Band 14 spectrum license through the contract’s 2042 expiration.26GAO. First Responder Network Authority: Options and Considerations for Congressional Action Related to Reauthorization The FCC renewed the Band 14 license in May 2023 for ten years, but that renewal is contingent on congressional reauthorization happening by February 2027.27FirstNet Authority. FY 2023 Annual Report
H.R. 7386, the First Responder Network Authority Reauthorization Act of 2026, passed the House unanimously by voice vote on April 20, 2026, and was referred to the Senate Commerce Committee. The bill would extend the Authority through fiscal year 2037, strip its independent status and place it under NTIA control, establish an associate administrator within NTIA to manage operations, and increase the number of board members with public safety professional experience from three to five. It also requires AT&T to notify the Authority of any network outage within 30 minutes, submit disaster recovery plans every five years, and undergo annual audits of contractor performance.28Congress.gov. H.R. 7386 – First Responder Network Authority Reauthorization Act of 202629NACo. House Passes FirstNet Reauthorization Bill The Senate’s response and the bill’s final form remain unresolved as the February 2027 deadline approaches.