The U.S. government is taking decisive action against potential cybersecurity threats by allocating $3 billion to remove Chinese telecommunications equipment from American networks. The funding, part of the 2025 National Defense Authorization Act signed by President Joe Biden, aims to help telecom companies replace technology from Chinese manufacturers like Huawei and ZTE.
This expanded funding addresses a critical shortfall in the Secure and Trusted Communications Networks Reimbursement Program, which was established in 2020 with an initial $1.9 billion budget. The Federal Communications Commission later determined that $4.98 billion would be needed to fully achieve the program's objectives.
The initiative particularly benefits small and rural telecom providers who have relied on affordable Chinese equipment. Under the program's requirements, these companies must remove and dispose of untrusted equipment while maintaining uninterrupted service for their customers.
The timing of this funding boost coincides with mounting concerns over Chinese-linked hacking campaigns. Recent cyber threats from groups like Salt Typhoon and Volt Typhoon have targeted U.S. telecommunications networks and critical infrastructure, including power grids and water systems.
Salt Typhoon's activities have specifically impacted major carriers like AT&T and Verizon, compromising network connections in politically sensitive areas such as Washington, D.C. Meanwhile, Volt Typhoon has focused on exploiting vulnerabilities in network management tools, raising concerns about potential widespread disruptions.
Unlike typical government spending initiatives, this program's costs are expected to be offset through future spectrum auction proceeds rather than solely adding to national debt.
The program includes oversight measures to monitor compliance and track the implementation of secure replacement equipment, aiming to strengthen America's telecommunications infrastructure against potential security risks.