Summary
Stops federal money from being used for communication gear that is a security risk and helps pay for its replacement to protect the nation's networks.
What problem does this solve?
Some communication equipment used in the U.S. could be a threat to national security if it allows foreign spying or disruption. This law creates a list of unsafe equipment, stops federal money from being used to buy it, and helps smaller companies pay to replace it.
Who does this affect?
- Small and rural communication service providers
- Manufacturers of telecommunications equipment
- Federal Communications Commission (FCC)
What does this law do?
Creates a list of risky equipment
Requires the Federal Communications Commission (FCC) to create and update a public list of communications equipment and services that are considered a threat to national security.
Establishes a reimbursement program
Creates the 'Secure and Trusted Communications Networks Reimbursement Program' to help small communication providers (with 2 million or fewer customers) pay to remove and replace risky equipment.
Bans use of federal subsidies
Prohibits companies from using federal money provided by the FCC to buy, rent, or maintain any equipment or services that are on the risky list.
Creates an information sharing program
Directs the government to create a program to share information about supply chain security risks with trusted communication companies, especially small and rural ones.
Sets penalties for violations
Allows the FCC to punish companies that violate the law. Penalties can include repaying all reimbursement funds and being banned from other FCC programs.
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Disposal of covered communications equipment or services
Requires proper disposal of old equipment
Mandates that companies receiving reimbursement funds must throw away the old, risky equipment in a way that prevents it from being used in other communication networks.
What is the real world impact?
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Protects national security
Prevents the use of communications equipment that could be used by foreign governments to spy on Americans or disrupt essential communication services, safeguarding the country's infrastructure.
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Helps smaller companies
Provides money to smaller, often rural, communication service providers who cannot afford to remove and replace risky equipment on their own, ensuring they can continue to operate securely.
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Increases government control over networks
Gives federal agencies the power to decide which companies' products can be used in U.S. networks. This could be seen as government overreach and might limit competition or slow down the adoption of new technology if approved equipment is more expensive or less available.
When does this start?
This law became effective on March 12, 2020, but it sets several different deadlines for government agencies and companies to take action.
FCC must publish list of risky equipment
The FCC is required to publish its initial list of covered communications equipment or services within one year of the law's enactment.
FCC must complete reimbursement program rules
The FCC must finish creating the rules for the reimbursement program within one year of the law's enactment.
Deadline for replacing equipment
Companies that receive reimbursement funds must remove, replace, and dispose of the risky equipment within one year of getting the money, though they can ask for an extension.