Chairwoman Rosenworcel's Update to Members of Congress Regarding the Secure and Trusted Communications Networks Reimbursement Program

In the Secure and Trusted Communications Networks Act (the Act), Congress directed the Federal Communications Commission to establish the Secure and Trusted Communications Networks Reimbursement Program to advance our national security by supporting the removal, replacement, and disposal of communications equipment and services produced or provided by Huawei Technologies Company or ZTE Corporation from our nation’s communications networks. I am now writing to keep you informed of the status of our work to administer the Reimbursement Program and upcoming deadlines under the Secure and Trusted Communications Networks Act and the FCC’s rules. As my prior correspondence noted, were the FCC to fund all reasonable and supported cost estimates in the approved applications, the Reimbursement Program would require approximately $4.98 billion, reflecting a $3.08 billion shortfall from the current appropriation of $1.9 billion. With July 15, 2023 deadline now less than three months away, the lack of an additional appropriation means that the FCC will need to plan to proceed with the prorated funding process described above. However, the Act does permit the FCC to grant a six-month extension of the removal, replacement, and disposal deadline for all recipients if the agency determines that the supply of needed equipment and services is inadequate to accomplish the Reimbursement Program’s goals. As of April 24, 2023, reimbursement claim requests have been submitted for 52 of the 126 applications approved for the Reimbursement Program, and the FCC has approved distributions of reimbursement funds for 38 of those applications, which now have deadlines to remove all Huawei and ZTE communications equipment and services ranging from September 29, 2023, to April 21, 2024, based on the initial distribution of funds to the recipients.