Reimbursement Program will require 4.98 billion USD, reflecting a current shortfall of more than 3 billion USD,” Jessica Rosenworcel, the chairwoman of the Federal Communications Commission, said. Since Congress only appropriated 1.9 billion USD to fund the removal process, companies would be reimbursed for only about 40% of the costs, she added. 

In 2019, Congress passed a law tasking the FCC with compelling U.S. telecoms carriers that receive federal subsidies to purge their networks of telecoms equipment that poses a national security risk, with promises of reimbursement. 

The FCC designated Huawei and ZTE as threats, compelling U.S. companies to remove their gear or be frozen out of an 8.3 billion USD government fund to purchase new equipment.

However, to fund the so-called “rip and replace” effort, Congress only appropriated 1.9 billion USD, raising questions about how effectively the removal program would be implemented.