U.S. lawmakers are expected to endorse US$1.9-billion in funding for a program to remove telecom network equipment the U.S. government says poses national security risks, as part of a year-end spending bill and COVID-19 bill, a source briefed on the matter said Sunday.
The U.S. Federal Communications Commission said in June it had formally designated China’s Huawei Technologies Co. and ZTE Corp. as threats, a declaration that bars U.S. firms from tapping a US$8.3-billion government fund to purchase equipment from the companies. Earlier this month, the FCC finalized rules that require carriers with ZTE or Huawei equipment to “rip and replace” that equipment but is awaiting funding from Congress.
Congress is also expected to back a US$3.2-billion emergency broadband benefit for low-income Americans.
The bill “establishes a temporary, emergency broadband benefit program at the FCC to help low-income Americans, including those economically challenged by the COVID-19 pandemic, get connected or remain connected to broadband,” the source said.
The source also said the program will supply a US$50 monthly subsidy to qualifying households “to help them afford broadband service and an internet-connected device.”
The US$7-billion COVID Relief Broadband Package also expands eligibility for the rip-and-replace reimbursement program to communications providers with 10 million subscribers or fewer but prioritizes reimbursement for providers with two million subscribers or fewer, the source said.
It also includes about US$250-million for additional FCC support for telehealth and US$1-billion for an Indigenous peoples broadband connectivity grant program.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.