The Bottom Line Upfront

The Federal Communications Commission (FCC) is seeking an additional $3.08 billion in funding to assist internet service providers in replacing equipment manufactured by Huawei and ZTE. Currently, the government has only allocated $1.9 billion for reimbursement, which falls significantly short of the estimated $4.98 billion needed by the FCC.

The Breakdown

  • The lack of funding has hindered the process of removing and replacing Huawei and ZTE equipment from telecom networks, posing potential national security risks. Without additional funding, some providers may be forced to shut down, leaving certain areas without service.
  • In 2020, Huawei and ZTE were designated as national security risks, leading to a law signed by former President Donald Trump that requires telecom providers to "rip and replace" the equipment from their networks.
  • The FCC reported in January that only five program participants had fully removed, replaced, and disposed of Huawei or ZTE equipment in their networks.