The U.S. House of Representatives will vote next week on an annual defense bill that allocates over $3 billion to help telecom companies remove equipment from Chinese firms Huawei and ZTE from American wireless networks, citing national security concerns.
The 1,800-page bill, unveiled Saturday, also includes provisions targeting China, such as reports on its efforts to bypass U.S. regulations and an intelligence assessment of its biotechnology capabilities.
The Federal Communications Commission (FCC) estimates the cost of replacing the equipment at $4.98 billion but notes a $3.08 billion shortfall due to previous congressional approvals of only $1.9 billion. FCC Chair Jessica Rosenworcel warned of potential rural network shutdowns and threats to 911 services if the funding gap isn’t addressed.
In 2019, Congress mandated the removal of Chinese telecom gear from networks receiving federal subsidies. Additional funding for the program, along with $500 million for regional tech hubs, will be sourced from a one-time FCC spectrum auction to meet growing wireless demand.