AT&T agrees to $2 billion in FirstNet upgrades under renegotiated Commerce deal

AT&T agreed to invest up to $2 billion in upgrades to the FirstNet emergency cellular network and lower federal rates expected to save the government up to $1 billion, the Commerce Department announced 31 March 2026. CEO John Stankey finalized the terms after months of negotiations with Commerce Secretary Howard Lutnick, prompted by a 2025 executive order directing agencies to scrutinize federal contracts.

In exchange, Commerce agreed to accelerate approval of network upgrades. FirstNet, created in 2017 with $6.5 billion in public funding, serves roughly 31,000 public safety agencies nationwide, prioritizing first responder communications during emergencies. AT&T's original contract commits the carrier to pay the government $18 billion through 2042 to lease dedicated spectrum. Some renegotiated terms expire in 2033, when fifth-generation network upgrades are expected to be complete; others run through the contract's end. The deal comes as Congress considers reauthorizing the FirstNet Authority, which faces a February 2027 sunset, and amid inspector general criticism of the program's oversight.