House Set to Vote on $3 Billion Fund for Removing Chinese Telecom Equipment from U.S. Networks
Next week, the U.S. House of Representatives will hold a vote on the annual defense bill, featuring a provision of $3 billion dedicated to the removal of Chinese telecom equipment from American wireless infrastructure.
As of November 20, the agency has processed over 35,000 reimbursement claims and received 30 final certifications indicating all replacement work was concluded, as noted by Rosenworcel.
Networks have until June 21, 2025, to finalize this work, although they may be granted extensions on a case-by-case basis due to delays in reimbursements. So far, 118 extensions have already been granted.
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Rosenworcel reported that 72 percent of status updates reveal that insufficient funding is a barrier to the “removal, replacement, and disposal” of the banned technology, with 50 percent of networks stating they cannot complete this process without additional financial support.
The FCC chair emphasized that this funding gap disproportionately impacts rural communities, with some indicating they may be forced to shut down parts of their networks and withdraw from the replacement initiative if the banned technology remains.
“Any network facility shutdown could eliminate the only available provider,” Rosenworcel stated, warning that this scenario would continue to endanger national security.
Tim Donovan, CEO of the Competitive Carriers Association, commended the announcement on Saturday, asserting that “funding is urgently required to meet the mandate to remove and replace covered equipment and services while ensuring connectivity for tens of millions of Americans.”
U.S. telecom networks have recently grabbed headlines as intelligence officials confirmed the persistent presence of Chinese government-backed hackers on American systems.
The affected telecoms have taken steps to respond, yet none have completely eradicated the Chinese presence from their networks, Neuberger noted. “Thus, there remains a risk of ongoing breaches of communications, and until companies address these cybersecurity vulnerabilities, it is likely that Chinese hackers will retain their access.”
“The focus of this operation was more precise,” Neuberger stated. “We believe … that the number of calls they intercepted and recorded primarily centered on very senior political figures.”
The ongoing cyber operation, dubbed “Salt Typhoon,” is currently under investigation by the FBI and the Cybersecurity and Infrastructure Security Agency. These agencies reported in November that Chinese hackers have launched a “broad and significant cyber espionage campaign” aimed at stealing data from individuals involved in government and political spheres.
Frank Fang and Reuters contributed to this report.
