The U.S. House of Representatives is set to vote on the annual defense bill next week. The bill proposes allocating $3 billion to assist U.S. telecom companies in removing equipment made by Chinese telecom firms Huawei and ZTE. This initiative aims to address national security risks, according to TechCrunch.
The 1,800-page bill includes additional measures against China, such as a report on China’s attempts to bypass U.S. security regulations and an intelligence assessment of China’s current biotechnology capabilities.
The Federal Communications Commission (FCC) has estimated that removing Chinese equipment will cost approximately $4.98 billion. However, Congress had previously approved only $1.9 billion. FCC Chair Jessica Rosenworcel has emphasized the need for additional funding, warning that the shortfall could result in the shutdown of some rural networks, which serve as the sole provider in certain areas and are critical for 911 emergency services.
Tim Donovan, CEO of the Competitive Carriers Association, welcomed the announcement. He stated, “This funding is critical to fulfilling the mandate to remove Chinese equipment and services while keeping millions of Americans connected.”
In 2019, Congress directed the FCC to ensure that telecom companies receiving federal subsidies remove Chinese equipment from their networks. In 2023, the White House requested $3.1 billion in funding for this purpose.
Senate Commerce Committee Chair Maria Cantwell has announced that proceeds from a one-time spectrum auction conducted by the FCC will fund the program. The auction is also expected to provide up to $500 million for regional technology hubs.
This initiative is regarded as a significant step toward removing Chinese equipment and ensuring U.S. security.
