The US Senate has voted in favor of a bill that looks set to provide an additional $3 billion to telecom companies in funding for the rip and replace program.
Funding for the program was included as part of the $895 billion National Defense Authorization Act (NDAA) that was passed by the US Senate on December 18.
In the bill, the NDAA mentioned the Federal Communications Commission's (FCC) rip-and-replace program, which is expected to receive an additional $3.08bn in funding.
The Senate's decision has been praised by the telecoms industry, including FCC chairwoman Jessica Rosenworcel.
"The ‘rip-and-replace’ program addresses the critical need to remove vulnerable and insecure equipment from US networks,” said Rosenworcel. “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.
"I want to thank the House and the Senate for allocating the full amount required to protect our nation’s communications networks, and for recognizing that the FCC’s spectrum auction authority can play an important national security role. I call on Congress to restore it in full.”
Additional funding for the rip-and-replace program, designed to remove equipment from Chinese network operators deemed a national security risk, has been sought for some time.
Earlier this year, Rosenworcel had urged Congress to free up more than $3bn in additional funding to help fund US carrier's replacement of Huawei and ZTE from their networks.
Competitive Carriers Association (CCA) president and CEO Tim Donovan also hailed the announcement, noting that the funding is "desperately needed."
“We are overwhelmingly pleased that Congress has passed legislation to fully fund the ‘Rip and replace’ program as part of the 2025 National Defense Authorization Act (NDAA). This funding has been desperately needed to meet the national security mandate created by Congress and fulfills Congress’s commitment to small and rural telecommunications carriers and the communities they serve."
Initially, the FCC agreed to provide up to $1.9 billion for communications providers that have 10 million or fewer subscribers.
However, funding applications hit $4.98 billion, creating a $3.08 billion shortfall.
Since July 2022, the FCC has received more than 20,000 reimbursement claims across 122 of the 126 applications that have been approved for funding.
It was revealed in January that only five companies have completed the removal of banned Chinese telecom equipment.
The lack of funding has led some wireless carriers, including SI Wireless, to fear for their future.