Untrusted vendor equipment is embedded in our critical telecommunications networks nationwide, potentially giving backdoor access to sensitive data in the U.S.

Further funding the FCC's "rip-and-replace" program can help address this potential threat.

Why it's important: Without the additional funding, this network equipment will remain in the U.S. communications network.

• Currently, untrusted network equipment remains within the backbone of the ICT infrastructure in communities important to U.S. national security.
• Many military installations are located in rural areas where much of the ICT infrastructure is provided by high-risk vendor equipment.

Here's the deal: "These networks carry our personal, financial, and sensitive health information," said Rep. Doris Matsui (D-Calif.) in a press release. "Allowing China to maintain a backdoor into our infrastructure is flat out unacceptable."

• In a press release on addressing the program's funding shortfall, Sen. Deb Fischer (R-Neb.) said, "…the current program shortfall is preventing eligible carriers from accessing the resources they need to cover the costs of replacing dangerous network gear."

In addition to the national security risk, there is also the real issue of network maintenance.

• These untrusted networks are not maintained per federal law. They are aging and at risk of falling into disrepair.
• Many of these networks provide the only signal in their area and are unlikely to be replaced by a nationwide carrier if they cannot maintain service.
• They are a lifeline for all Americans as they traverse rural America and need access to 911 or emergency services.

What you need to know: In 2019, Congress passed the Secure and Trusted Network Act.

• This bill established a mechanism to prevent communications equipment or services that pose a national security risk from entering U.S. networks.
• It also enabled the FCC to establish the $1.9 billion Supply Chain Reimbursement Program — also known as "rip-and-replace" — to remove any high-risk vendor equipment or services currently used in U.S. networks.

Okay, but: The appropriated $1.9 billion only covers part of the approximately $4.98 billion in reimbursable costs, a $3 billion funding shortfall.

• Nearly 40% of the program's participants reported they could not complete the necessary "rip-and-replace" work without additional government funding.

What the FCC is saying: In May, FCC Chairwoman Jessica Rosenworcel provided a written update to Congress on the funding shortfall and the risks to national security, network reliability and businesses if the program is not funded.

"I am writing … to emphasize again the urgent need for full funding of the Reimbursement Program," said Rosenworcel.

• "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 any efforts to fully fund the Reimbursement Program."

The takeaway: Appropriating remaining funding for this project ensures this potential national security threat is addressed quickly.

• "The only way this program can succeed is for Congress to provide the needed funds, and time is quickly running out," said Tim Donovan, Competitive Carriers Association's president and CEO.

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