The FCC has told Congress it will need an additional $3 billion to fund the removal of all equipment made by Chinese technology firms Huawei and ZTE, which will bring the total expenditure by the agency to $4.9 billion.
Jessica Rosenworcel, the chairwoman of the Federal Communications Commission, said in a letter to the head of the Committee on Commerce, Science, and Transportation Friday, “To fund all reasonable and supported cost estimates…, the Reimbursement Program will require $4.98 billion, reflecting a current shortfall of $3.08 billion.”
Presently the FCC only has enough money to reimburse companies for approximately 40% of the process.
Congress passed a law in 2019 tasking the FCC with compelling telecommunications companies that receive federal subsidies to remove all telecom equipment which could pose a national security risk, primarily equipment manufactured by Chinese companies Huawei and ZTE. The companies would be reimbursed for their efforts under the law.
The FCC mandated that if all equipment by ZTE and Huawei were not removed from their systems, companies would be prevented from access to $8.3 billion in government funds designated for purchasing new equipment. At the time Congress only allocated $1.9 billion to the “rip and replace” program.
“Absent an additional appropriation, the Commission will apply the prioritization scheme Congress specified,” Rosenworcel wrote, adding the FCC would process claims “as allocations are issued in the coming days.”
Companies are allowed to complete the work after receipt of their reimbursement.