US Congress Authorizes $3B to Replace Chinese Telecom Gear

Telecom firms could receive a cash infusion from a federal “rip-and-replace” program aimed at scrapping Chinese networking gear amid a cyberespionage campaign targeting President-elect Donald Trump and other top U.S. political leaders.

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The Federal Communications Commission has struggled with a $3 billion funding gap for helping small and rural carriers replace Chinese-made equipment (see: FCC Faces $3B Shortfall in Huawei Rip-and-Replace Program). President Joe Biden on Monday signed an $895 billion bipartisan spending package authorizing the needed funds to counter mounting national security threats from Chinese hacking campaigns like Volt Typhoon and Salt Typhoon. Congress must still appropriate the money in a separate bill before the communications agency can grant it to telecoms.

The bill signing comes as experts warn Chinese hackers tied to Beijing’s foreign intelligence service remain entrenched in U.S. communications infrastructure, infiltrating major telecom networks to steal call records and sensitive law enforcement data. Cybersecurity and Infrastructure Security Agency officials recently told reporters it’s unclear when the threat will be fully eradicated while urging government leaders to avoid SMS-based multi-factor authentication and to set telecom PINs for sensitive operations (see: US CISA Endorses Encrypted Apps Amid Chinese Telecom Hack).

FCC Chairwoman Jessica Rosenworcel celebrated the passage of the defense bill statement noting how the rip-and-replace program “addresses the critical need to remove vulnerable and insecure equipment from U.S. networks.” She added that “full funding will not only help protect our nation’s communications infrastructure but also ensure that rural communities who rely on these networks maintain vital connectivity.”

The FCC’s Secure and Trusted Communications Networks Reimbursement Program was initially launched in 2020 and received $1.9 billion a year later to help small carriers replace Chinese-made equipment from companies like Huawei and ZTE, both flagged as national security threats. But experts warn federal agencies must step up efforts against escalating Chinese cyberthreats while noting the tech industry’s heavy reliance on Chinese manufacturing and software (see: US Agencies Urged to Combat Growing Chinese Cyberthreat).

The 2025 NDAA prioritizes technology, cybersecurity and artificial intelligence, with provisions to strengthen supply chain resilience and accelerate federal adoption of emerging technologies. Beyond funding the rip-and-replace program, the bill also allocates $143.8 billion for science and tech research and launches pilot programs to advance AI use across the Defense Department (see: US Defense Bill Includes Major Focus on Tech, AI and Cyber).