INSIGHTi
Secure and Trusted Communications
Networks Reimbursement Program:
Frequently Asked Questions
Updated October 7, 2021
What Is the Secure and Trusted Communications
Networks Reimbursement Program?
On March 12, 2020, the Secure and Trusted Communications Networks Act of 2019 (P.L. 116-124)
(Secure Networks Act) became law. The act addresses congressional concerns about using
telecommunications network equipment that may pose a national security threat to the United States,
including equipment from the Chinese firms, Huawei Technologies Co., Ltd., and ZTE Corporation.
Section 4 directs the Federal Communications Commission (FCC) to create the Secure and Trusted
Communications Networks Reimbursement Program (Reimbursement Program) to reimburse
telecommunication providers that replace “covered” network equipment—equipment posing a national
security threat. The FCC developed the Reimbursement Program (see website), and is preparing to accept
applications for reimbursement, starting October 29, 2021.
How Much Funding Is Available?
On December 27, 2020, the Consolidated Appropriations Act (CAA), 2021 (P.L. 116-260) became law. In
Section 906, Congress appropriated $1.9 bil ion to the FCC for the Secure Networks Act, and designated
$1.895 bil ion of such funds for the Reimbursement Program.
Who Is Eligible for Reimbursement Funding?
Under the Secure Networks Act, eligible entities include providers of “advanced communications
services,” defined in 47 U.S.C. §1302(d)(1)—essential y, high-speed broadband providers. The act aims
to reimburse smal providers—those with two mil ion or fewer customers—that replace “covered”
network equipment.
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In Section 901 of the CAA 2021, Congress amended the Secure Networks Act, making providers with
fewer than ten mil ion customers eligible for reimbursement. Congress also made “accredited public or
private noncommercial educational institutions that provide facilities-based educational broadband
services” and health care providers and libraries that provide advanced communication services eligible
for reimbursement funding. Congress prioritized al ocations:
 First, to providers with two mil ion or fewer customers;
 Next, to accredited public or private noncommercial educational institutions providing facilities-
based educational broadband service; and
 Last, to any remaining eligible applicants.
What Are “Covered” Equipment and Services?
In its November 2019 Supply Chain Order, the FCC prohibited the use of Universal Service Fund (USF)
support to purchase or obtain equipment or services produced or provided by a “covered company” and
initial y designated Huawei and ZTE as “covered companies.”
In March 2020, the Secure Networks Act (Section 2) required the FCC to identify and publish, within one
year of enactment, a list of “covered equipment and services” posing a threat to U.S. national security or
the security of U.S. persons. Congress directed the FCC to include equipment identified by other federal
agencies, monitor equipment designations, and update the list as needed.
On June 30, 2020, the FCC issued final Designation Orders for Huawei and ZTE, naming them as
“covered companies.”
In December 2020, Section 901 of the CAA, 2021, amended the Secure Networks Act, limiting the use of
reimbursement funds for equipment identified in the FCC’s 2019 Supply Chain Order and Designation
Orders to Huawei and ZTE.
In March 2021, the FCC released a list of “covered equipment and services” that included products of
Huawei, ZTE, and three other Chinese firms. However, the Reimbursement Program only covers the
replacement of Huawei and ZTE equipment.
On August 3, 2021, the FCC released a detailed Final Catalog of Eligible Expenses and Estimated Costs
that entities can use to develop reimbursement cost estimates for “covered” equipment obtained between
April 17, 2018, and June 30, 2020. By law, the FCC can consider “costs reasonably incurred” on a case-
by-case basis, including upgrades discussed in the July 13, 2021, Third Report and Order.
When Can Entities Apply?
Per the FCC, the application window wil be open from October 29, 2021, through January 14, 2022.

How Do Entities Apply for Reimbursement?
In a webinar on the application process, FCC officials encouraged applicants to review the documents and
procedures on its website; compile network location sites, equipment on each site, and asset-level
identification information for equipment targeted for reimbursement; and solicit quotes for replacement
equipment before the application window opens on October 29, 2021.

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The FCC and the Fund Administrator plan to review applications. The FCC must act on applications
within 90 days; it can extend the review deadline by 45 days. It expects to communicate with applicants
in the first quarter of 2022; entities can correct any deficiencies identified in their application within 15
days. It plans to announce approved applicants and reimbursement amounts by the second quarter of
2022.
When Can Entities Receive Reimbursements?
Once the FCC announces al ocation amounts, entities may file for reimbursement. Entities must file at
least one reimbursement within one year of the date of the al ocation announcement; if entities do not file
a reimbursement claim within the year, the FCC can reclaim funds. Entities have one year from the
al ocation announcement to complete the replacement, and 120 days after that to file final
reimbursements.
What Are the Expected Reporting Requirements?
By law, recipients must file status updates to the FCC every 90 days; file spending reports to the FCC
(twice a year, per the FCC); and file an Annual Report. Entities must certify they have a plan and timeline
for removal; will not purchase “covered” equipment; will consult the National Institute of Standards and
Technology Cybersecurity Framework; and wil remove al “covered” network equipment.
By law, the FCC must report to Congress every 180 days.
How Do Entities Dispose of Equipment?
On September 30, 2021, the FCC published best practices on equipment disposal, as required by law.
What Factors May Affect the Timeline?
Entities expressed concern about the timeline for implementation. They cite shortages of computer chips;
leasing or access agreements that they may need to modify; finding tower crews and coordinating with
tower owners; and weather, which al could affect timelines.
By law, the FCC can grant a general extension to the one-year term for al entities or an individual
extension to an entity for delays caused by no fault of its own (e.g., weather).

Author Information

Jill C. Gallagher

Analyst in Telecommunications Policy




Disclaimer

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This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
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IN11663 · VERSION 3 · UPDATED

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