The U.S. House of Representatives is set to vote on the 2025 defense budget this week, which includes a $3-billion allocation to replace telecommunications equipment previously acquired from Huawei and ZTE. According to Reuters, the equipment provided by these companies comes with security risks, especially as People’s Republic China (PRC)-affiliated hackers have been conducting a massive cyber espionage campaign to compromise private U.S. telecommunications companies. Congress also wants an intelligence report that outlines Chinese espionage efforts and the country’s biotech capabilities.
The U.S. Federal Communications Commission (FCC) has previously created the Supply Chain Reimbursement Program (also known as the Rip and Replace Program)—worth $1.9 billion—so that network operators with ten million or fewer customers can get reimbursed for the removal, replacement, and disposal of hardware and services provided by Huawei and/or ZTE. However, the agency has previously said that the total cost of replacing everything could hit $4.98 billion. So, the $3 billion added to the National Defense Authorization Act for Fiscal Year 2025 should make up some of the shortfall, which would help over 100 U.S. carriers to get rid of potentially compromised equipment.
