IB 
Union Calendar No. 281 
116TH CONGRESS 
1ST SESSION H. R. 4998 
[Report No. 116–352] 
To prohibit certain Federal loans, grants, and subsidies from being used 
to purchase communications equipment or services posing national secu-
rity risks, to provide for the establishment of a reimbursement program 
for the replacement of communications equipment or services posing 
such risks, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 8, 2019 
Mr. PALLONE (for himself, Mr. WALDEN, Ms. MATSUI, and Mr. GUTHRIE) 
introduced the following bill; which was referred to the Committee on En-
ergy and Commerce 
DECEMBER 16, 2019 
Reported with amendments, committed to the Committee of the Whole House 
on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on November 8, 2019] 
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A BILL 
To prohibit certain Federal loans, grants, and subsidies from 
being used to purchase communications equipment or 
services posing national security risks, to provide for 
the establishment of a reimbursement program for the 
replacement of communications equipment or services 
posing such risks, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Secure and Trusted 
Communications Networks Act of 2019’’. 
SEC. 2. DETERMINATION OF COMMUNICATIONS EQUIP-
MENT OR SERVICES POSING NATIONAL SECU-
RITY RISKS. 
(a) PUBLICATION
OF
COVERED
COMMUNICATIONS 
EQUIPMENT OR SERVICES LIST.—Not later than 1 year 
after the date of the enactment of this Act, the Commission 
shall publish on its website a list of covered communications 
equipment or services. 
(b) DETERMINATION BY COMMISSION.—The Commis-
sion shall place on the list published under subsection (a) 
any communications equipment or service, if and only if 
the Commission determines that such equipment or serv-
ice— 
(1) is produced or provided by— 
(A) Huawei Technologies Co. Limited, 
Zhongxing Telecommunications Equipment Cor-
poration, or any subsidiary or affiliate of either 
such entity; 
(B) any successor to any entity described in 
subparagraph (A); or 
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(C) any other entity, if the Commission de-
termines, based exclusively on the determinations 
described in paragraphs (1) through (3) of sub-
section (c), that such equipment or service pro-
duced or provided by such entity poses an unac-
ceptable risk to the national security of the 
United States or the security and safety of 
United States persons; and 
(2) is capable of— 
(A) routing or redirecting user data traffic 
or permitting visibility into any user data or 
packets that such equipment or service transmits 
or otherwise handles; or 
(B) causing the network of a provider of ad-
vanced communications service to be disrupted 
remotely. 
(c) RELIANCE
ON
CERTAIN
OTHER
DETERMINA-
TIONS.—In making a determination under subsection 
(b)(1)(C), the Commission shall rely solely on one or more 
of the following determinations: 
(1) A specific determination made by any execu-
tive branch interagency body with appropriate na-
tional security expertise, including the Federal Acqui-
sition Security Council established under section 
1322(a) of title 41, United States Code. 
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(2) A specific determination made by the De-
partment of Commerce pursuant to Executive Order 
13873 (84 Fed. Reg. 22689; relating to securing the 
information and communications technology and 
services supply chain). 
(3) The communications equipment or service 
being covered telecommunications equipment or serv-
ices, as defined in section 889(f)(3) of the John S. 
McCain National Defense Authorization Act for Fis-
cal Year 2019 (Public Law 115–232; 132 Stat. 1918). 
(d) UPDATING OF LIST.— 
(1) IN GENERAL.—The Commission shall peri-
odically update the list published under subsection 
(a), as necessary to protect national security and to 
address changes in the determinations described in 
paragraphs (1) through (3) of subsection (c). 
(2) MONITORING
OF
DETERMINATIONS.—The 
Commission shall monitor the making or reversing of 
the determinations described in paragraphs (1) 
through (3) of subsection (c) in order to determine 
whether to place communications equipment or serv-
ices on the list published under subsection (a) or to 
remove communications equipment or services from 
such list. If a determination described in any such 
paragraph that provided the basis for a determina-
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tion by the Commission under subsection (b)(1)(C) 
with respect to any communications equipment or 
service is reversed, the Commission shall remove such 
equipment or service from such list, except that the 
Commission may not remove such equipment or serv-
ice from such list if any other determination described 
in any such paragraph provides a basis for a deter-
mination by the Commission under subsection 
(b)(1)(C) with respect to such equipment or service. 
(3) PUBLIC NOTIFICATION.—For each 12-month 
period during which the list published under sub-
section (a) is not updated, the Commission shall no-
tify the public that no updates were necessary during 
such period to protect national security or to address 
changes in the determinations described in para-
graphs (1) through (3) of subsection (c). 
SEC. 3. PROHIBITION ON USE OF CERTAIN FEDERAL SUB-
SIDIES. 
(a) IN GENERAL.— 
(1) PROHIBITION.—A Federal subsidy that is 
made available through a program administered by 
the Commission and that provides funds to be used 
for the capital expenditures necessary for the provi-
sion of advanced communications service may not be 
used to— 
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(A) purchase, rent, lease, or otherwise ob-
tain any covered communications equipment or 
service; or 
(B) maintain any covered communications 
equipment or service previously purchased, 
rented, leased, or otherwise obtained. 
(2) TIMING.—Paragraph (1) shall apply with re-
spect to any covered communications equipment or 
service beginning on the date that is 60 days after the 
date on which the Commission places such equipment 
or service on the list required by section 2(a). In the 
case of any covered communications equipment or 
service that is on the initial list published under such 
section, such equipment or service shall be treated as 
being placed on the list on the date on which such list 
is published. 
(b) COMPLETION OF PROCEEDING.—Not later than 90 
days after the date of the enactment of this Act, the Commis-
sion shall adopt a Report and Order in the matter of Pro-
tecting Against National Security Threats to the Commu-
nications Supply Chain Through FCC Programs (WC 
Docket No. 18–89) that implements subsection (a). 
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SEC. 4. SECURE AND TRUSTED COMMUNICATIONS NET-
WORKS REIMBURSEMENT PROGRAM. 
(a) IN GENERAL.—The Commission shall establish a 
reimbursement program, to be known as the ‘‘Secure and 
Trusted Communications Networks Reimbursement Pro-
gram’’, to make reimbursements to providers of advanced 
communications service to replace covered communications 
equipment or services. 
(b) ELIGIBILITY.—The Commission may not make a 
reimbursement under the Program to a provider of ad-
vanced communications service unless the provider— 
(1) has 2,000,000 or fewer customers; and 
(2) makes all of the certifications required by 
subsection (d)(5). 
(c) USE OF FUNDS.— 
(1) IN GENERAL.—A recipient of a reimburse-
ment under the Program shall use reimbursement 
funds solely for the purposes of— 
(A) permanently removing covered commu-
nications equipment or services purchased, 
rented, leased, or otherwise obtained before— 
(i) in the case of any covered commu-
nications equipment or services that are on 
the initial list published under section 2(a), 
August 14, 2018; or 
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(ii) in the case of any covered commu-
nications equipment or services that are not 
on the initial list published under section 
2(a), the date that is 60 days after the date 
on which the Commission places such equip-
ment or services on the list required by such 
section; 
(B) replacing the covered communications 
equipment or services removed as described in 
subparagraph (A) with communications equip-
ment or services that are not covered commu-
nications equipment or services; and 
(C) disposing of the covered communica-
tions equipment or services removed as described 
in subparagraph (A) in accordance with the re-
quirements under subsection (d)(8). 
(2) LIMITATIONS.—A recipient of a reimburse-
ment under the Program may not— 
(A) use reimbursement funds to remove, re-
place, or dispose of any covered communications 
equipment or service purchased, rented, leased, 
or otherwise obtained on or after— 
(i) in the case of any covered commu-
nications equipment or service that is on 
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mits the application for the reimbursement, any cov-
ered communications equipment or service that is in 
the network of the recipient as of such date is removed 
from the list published under section 2(a), the recipi-
ent may— 
(A) return to the Commission any reim-
bursement funds received for the removal, re-
placement, and disposal of such equipment or 
service and be released from any requirement 
under this section to remove, replace, or dispose 
of such equipment or service; or 
(B) retain any reimbursement funds re-
ceived for the removal, replacement, and disposal 
of such equipment or service and remain subject 
to the requirements of this section to remove, re-
place, and dispose of such equipment or service 
as if such equipment or service continued to be 
on the list published under section 2(a). 
(2) ASSURANCES.—In the case of an assurance 
relating to the removal, replacement, or disposal of 
any equipment or service with respect to which the re-
cipient returns to the Commission reimbursement 
funds under paragraph (1)(A), such assurance may 
be satisfied by making an assurance that such funds 
have been returned. 
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