Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel is once again calling on Congress to fully fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program (SCRP), which aims to have communications service providers “rip and replace” untrusted IT equipment from their networks.
Specifically, the program funds the removal of communications equipment and services produced or provided by China-based Huawei Technologies Company and ZTE Corporation – as well as other providers that the Federal government may view as a national security threat.
In a Nov. 26 letter to members of Congress that the FCC made public on Dec. 2, Rosenworcel emphasized “the urgent need for full funding of the Reimbursement Program.”
“The consequences of the continued lack of full funding for the Reimbursement Program are significant for our national security and rural communities,” Rosenworcel wrote. “Some participants in the Reimbursement Program have informed the commission that they fear that they may need to shut down portions of their networks and withdraw from this process without completing the removal of insecure equipment.”
“Because so many of the Reimbursement Program participants serve rural and remote areas of the country, any shut down of network facilities could remove the only provider available,” she warned. “Moreover, the inability of any participant to fully remove, replace, and dispose of equipment and services contemplated under the law raises serious national security concerns.”
Rosenworcel noted that the program – which aims to replace insecure equipment in the networks of 126 carriers – has a current appropriation of $1.9 billion.
However, the commission said if it wanted to fund “all reasonable and supported cost estimates in the approved applications,” the program would require about $4.98 billion – reflecting a $3.08 billion shortfall.
The FCC chair said that the deadlines for program recipients to remove, replace, and dispose of insecure equipment and services range from Nov. 24, 2024, to June 21, 2025. Recipients that are unable to meet their deadline “due to no fault of such recipient” can be granted an extension.
As of Nov. 20, 2024, the FCC said it has granted 139 extensions – including 118 “based in whole or in part on the funding shortfall” – to complete the removal and disposal of equipment and services associated with a Reimbursement Program application.
Rosenworcel said “recipients have emphasized the difficulties arising from the funding shortfall.” Notably, she said 50 percent of recipients reported that they cannot complete the work required under the Reimbursement Program without additional government funding.
“In light of these concerns, and the need to ensure that our nation’s communications networks are free of this vulnerable and insecure equipment, the commission stands ready to assist Congress in efforts to fully fund the Reimbursement Program,” Rosenworcel wrote.
This is not the first time Rosenworcel has pointed to the need for additional funding for the program. Last year at this time, Rosenworcel testified before Congress to highlight the more than $3 billion funding shortfall.
“That means we’re providing 40 cents on the dollar to a lot of small and rural carriers to rip this equipment out and replace it. We need more funds to get the job done and for our networks to be fully secure,” she stressed.
Additionally, the White House sent a supplemental funding request to Congress in October 2023 which featured $3.1 billion to fund the FCC’s rip and replace program. The funding request was never agreed to by Congress.
Also similar to this time last year, Congress has yet to reach a comprehensive, bipartisan agreement to fund the government for fiscal year 2025. It faces a key deadline of Dec. 20 to avert a government shutdown.
