I 
116TH CONGRESS 
1ST SESSION H. R. 4998 
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 
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. 
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’’. 
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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 Commis-
sion shall publish on its website a list of covered commu-
nications equipment or services. 
(b) DETERMINATION BY COMMISSION.—The Com-
mission 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 
service— 
(1) is produced or provided by— 
(A) Huawei Technologies Co. Limited, 
Zhongxing 
Telecommunications 
Equipment 
Corporation, or any subsidiary or affiliate of ei-
ther such entity; 
(B) any successor to any entity described 
in subparagraph (A); or 
(C) any other entity, if the Commission de-
termines, based exclusively on the determina-
tions described in paragraphs (1) through (3) 
of subsection (c), that such equipment or serv-
ice produced or provided by such entity poses 
an unacceptable risk to the national security of 
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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 trans-
mits or otherwise handles; or 
(B) causing the network of a provider of 
advanced communications service to be dis-
rupted 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 exec-
utive branch interagency body with appropriate na-
tional security expertise, including the Federal Ac-
quisition Security Council established under section 
1322(a) of title 41, United States Code. 
(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). 
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(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-
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 
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the Commission may not remove such equipment or 
service from such list if any other determination de-
scribed in any such paragraph provides a basis for 
a determination 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 
subsection (a) is not updated, the Commission shall 
notify the public that no updates were necessary 
during such period to protect national security or to 
address changes in the determinations described in 
paragraphs (1) through (3) of subsection (c). 
SEC. 3. PROHIBITION ON USE OF CERTAIN FEDERAL 
LOANS, GRANTS, AND SUBSIDIES. 
(a) IN GENERAL.— 
(1) PROHIBITION.—A Federal loan, grant, or 
subsidy that is made available through a program 
administered by the Commission and that provides 
funds to be used for the capital expenditures nec-
essary for the provision of advanced communications 
service may not be used to— 
(A) purchase, rent, lease, or otherwise ob-
tain any covered communications equipment or 
service; or 
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(B) maintain any covered communications 
equipment or service previously purchased, 
rented, leased, or otherwise obtained. 
(2) TIMING.—Paragraph (1) shall apply with 
respect 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 pub-
lished 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 
Commission shall adopt a Report and Order in the matter 
of Protecting Against National Security Threats to the 
Communications Supply Chain Through FCC Programs 
(WC Docket No. 18–89) that implements subsection (a). 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed to limit a Federal agency from pro-
curing goods or services. 
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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 communica-
tions 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 sec-
tion 2(a), the date that is 60 days after 
the date on which the Commission places 
such equipment or services on the list re-
quired 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 de-
scribed in subparagraph (A) in accordance with 
the requirements under subsection (d)(8). 
(2) LIMITATIONS.—A recipient of a reimburse-
ment under the Program may not— 
(A) use reimbursement funds to remove, 
replace, or dispose of any covered communica-
tions 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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the initial list published under section 2(a), 
August 14, 2018; or 
(ii) in the case of any covered commu-
nications equipment or service that is 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 
equipment or service on the list required 
by such section; or 
(B) purchase, rent, lease, or otherwise ob-
tain any covered communications equipment or 
service, using reimbursement funds or any 
other funds (including funds derived from pri-
vate sources). 
(d) IMPLEMENTATION.— 
(1) REGULATIONS.—Not later than 270 days 
after the date of the enactment of this Act, the 
Commission shall promulgate regulations to imple-
ment the Program. 
(2) SUGGESTED REPLACEMENTS.— 
(A) DEVELOPMENT OF LIST.—The Com-
mission shall develop a list of suggested replace-
ments of both physical and virtual communica-
tions equipment, application and management 
software, and services. 
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(B) NEUTRALITY.—The list developed 
under subparagraph (A) shall be technology 
neutral and may not advantage the use of reim-
bursement funds for capital expenditures over 
operational expenditures, to the extent that the 
Commission determines that communications 
services can serve as an adequate substitute for 
the installation of communications equipment. 
(3) APPLICATION PROCESS.— 
(A) IN GENERAL.—The Commission shall 
develop an application process and related 
forms and materials for the Program. 
(B) COST ESTIMATE.— 
(i) INITIAL ESTIMATE.—The Commis-
sion shall require an applicant to provide 
an initial reimbursement cost estimate at 
the time of application, with supporting 
materials substantiating the costs. 
(ii) UPDATES.—During and after the 
application review process, the Commission 
may require an applicant to— 
(I) update the initial reimburse-
ment cost estimate submitted under 
clause (i); and 
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(II) submit additional supporting 
materials substantiating an updated 
cost estimate submitted under sub-
clause (I). 
(C) MITIGATION
OF
BURDEN.—In devel-
oping the application process under this para-
graph, the Commission shall take reasonable 
steps to mitigate the administrative burdens 
and costs associated with the application proc-
ess, while taking into account the need to avoid 
waste, fraud, and abuse in the Program. 
(4) APPLICATION REVIEW PROCESS.— 
(A) DEADLINE.— 
(i) IN GENERAL.—Except as provided 
in clause (ii) and subparagraph (B), the 
Commission shall approve or deny an ap-
plication for a reimbursement under the 
Program not later than 90 days after the 
date of the submission of the application. 
(ii) ADDITIONAL
TIME
NEEDED
BY 
COMMISSION.—If the Commission deter-
mines that, because an excessive number of 
applications have been filed at one time, 
the Commission needs additional time for 
employees of the Commission to process 
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the applications, the Commission may ex-
tend the deadline described in clause (i) for 
not more than 45 days. 
(B) OPPORTUNITY
FOR
APPLICANT
TO 
CURE DEFICIENCY.—If the Commission deter-
mines that an application is materially deficient 
(including by lacking an adequate cost estimate 
or adequate supporting materials), the Commis-
sion shall provide the applicant a 15-day period 
to cure the defect before denying the applica-
tion. If such period would extend beyond the 
deadline under subparagraph (A) for approving 
or denying the application, such deadline shall 
be extended through the end of such period. 
(C) EFFECT OF DENIAL.—Denial of an ap-
plication for a reimbursement under the Pro-
gram shall not preclude the applicant from re-
submitting the application or submitting a new 
application for a reimbursement under the Pro-
gram at a later date. 
(5) CERTIFICATIONS.—An applicant for a reim-
bursement under the Program shall, in the applica-
tion of the applicant, certify to the Commission 
that— 
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(A) as of the date of the submission of the 
application, the applicant— 
(i) has developed a plan for— 
(I) the permanent removal and 
replacement of any covered commu-
nications equipment or services that 
are in the communications network of 
the applicant as of such date; and 
(II) the disposal of the equip-
ment or services removed as described 
in subclause (I) in accordance with 
the requirements under paragraph 
(8); and 
(ii) has developed a specific timeline 
(subject to paragraph (7)) for the perma-
nent removal, replacement, and disposal of 
the covered communications equipment or 
services identified under clause (i), which 
timeline shall be submitted to the Commis-
sion as part of the application; and 
(B) beginning on the date of the approval 
of the application, the applicant— 
(i) will not purchase, rent, lease, or 
otherwise obtain covered communications 
equipment or services, using reimburse-
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ment funds or any other funds (including 
funds derived from private sources); and 
(ii) in developing and tailoring the 
risk management practices of the appli-
cant, will consult and consider the stand-
ards, guidelines, and best practices set 
forth in the cybersecurity framework devel-
oped by the National Institute of Stand-
ards and Technology. 
(6) 
DISTRIBUTION
OF
REIMBURSEMENT 
FUNDS.— 
(A) IN GENERAL.—The Commission shall 
make reasonable efforts to ensure that reim-
bursement funds are distributed equitably 
among all applicants for reimbursements under 
the Program according to the needs of the ap-
plicants, as identified by the applications of the 
applicants. 
(B) NOTIFICATION.—If, at any time dur-
ing the implementation of the Program, the 
Commission determines that the funds made 
available to the Commission to carry out the 
Program will not be sufficient to fully fund all 
approved applications for reimbursements under 
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the Program, the Commission shall immediately 
notify— 
(i) the Committee on Energy and 
Commerce and the Committee on Appro-
priations of the House of Representatives; 
and 
(ii) the Committee on Commerce, 
Science, and Transportation and the Com-
mittee on Appropriations of the Senate. 
(7) REMOVAL, REPLACEMENT, AND DISPOSAL 
TERM.— 
(A) DEADLINE.—The permanent removal, 
replacement, and disposal of any covered com-
munications equipment or services identified 
under paragraph (5)(A)(i) shall be completed 
not later than 1 year after the date on which 
the Commission approves the application. 
(B) GENERAL EXTENSION.—The Commis-
sion may grant an extension of the deadline de-
scribed in subparagraph (A) for 6 months to all 
recipients of reimbursements under the Pro-
gram if the Commission— 
(i) finds that the supply of replace-
ment communications equipment or serv-
ices needed by the recipients to achieve the 
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purposes of the Program is inadequate to 
meet the needs of the recipients; and 
(ii) provides notice and a detailed jus-
tification for granting the extension to— 
(I) the Committee on Energy and 
Commerce of the House of Represent-
atives; and 
(II) the Committee on Com-
merce, Science, and Transportation of 
the Senate. 
(C) INDIVIDUAL EXTENSION.— 
(i) PETITION.—A recipient of a reim-
bursement under the Program may peti-
tion the Commission for an extension for 
such recipient of the deadline described in 
subparagraph (A) or, if the Commission 
has granted an extension of such deadline 
under subparagraph (B), such deadline as 
so extended. 
(ii) GRANT.—The Commission may 
grant a petition filed under clause (i) by 
extending, for the recipient that filed the 
petition, the deadline described in subpara-
graph (A) or, if the Commission has grant-
ed an extension of such deadline under 
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subparagraph (B), such deadline as so ex-
tended, for a period of not more than 6 
months if the Commission finds that, due 
to no fault of such recipient, such recipient 
is unable to complete the permanent re-
moval, replacement, and disposal described 
in subparagraph (A). 
(8) DISPOSAL OF COVERED COMMUNICATIONS 
EQUIPMENT OR SERVICES.—The Commission shall 
include in the regulations promulgated under para-
graph (1) requirements for the disposal by a recipi-
ent of a reimbursement under the Program of cov-
ered communications equipment or services identi-
fied under paragraph (5)(A)(i) and removed from 
the network of the recipient in order to prevent such 
equipment or services from being used in the net-
works of providers of advanced communications serv-
ice. 
(9) STATUS UPDATES.— 
(A) IN
GENERAL.—Not less frequently 
than once every 90 days beginning on the date 
on which the Commission approves an applica-
tion for a reimbursement under the Program, 
the recipient of the reimbursement shall submit 
to the Commission a status update on the work 
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of the recipient to permanently remove, replace, 
and dispose of the covered communications 
equipment or services identified under para-
graph (5)(A)(i). 
(B) PUBLIC
POSTING.—Not earlier than 
30 days after the date on which the Commis-
sion receives a status update under subpara-
graph (A), the Commission shall make such sta-
tus update public on the website of the Com-
mission. 
(C) REPORTS TO CONGRESS.—Not less fre-
quently than once every 180 days beginning on 
the date on which the Commission first makes 
funds available to a recipient of a reimburse-
ment under the Program, the Commission shall 
prepare and submit to the Committee on En-
ergy and Commerce of the House of Represent-
atives and the Committee on Commerce, 
Science, and Transportation of the Senate a re-
port on— 
(i) the implementation of the Program 
by the Commission; and 
(ii) the work by recipients of reim-
bursements under the Program to perma-
nently remove, replace, and dispose of cov-
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ered communications equipment or services 
identified under paragraph (5)(A)(i). 
(e) MEASURES TO AVOID WASTE, FRAUD, AND 
ABUSE.— 
(1) IN GENERAL.—The Commission shall take 
all necessary steps to avoid waste, fraud, and abuse 
with respect to the Program. 
(2) SPENDING
REPORTS.—The Commission 
shall require recipients of reimbursements under the 
Program to submit to the Commission on a regular 
basis reports regarding how reimbursement funds 
have been spent, including detailed accounting of the 
covered communications equipment or services per-
manently removed and disposed of, and the replace-
ment equipment or services purchased, rented, 
leased, or otherwise obtained, using reimbursement 
funds. 
(3) AUDITS, REVIEWS, AND FIELD INVESTIGA-
TIONS.—The Commission shall conduct— 
(A) regular audits and reviews of reim-
bursements under the Program to confirm that 
recipients of such reimbursements are com-
plying with this Act; and 
(B) random field investigations to ensure 
that recipients of reimbursements under the 
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Program are performing the work such recipi-
ents are required to perform under the commit-
ments made in the applications of such recipi-
ents for reimbursements under the Program, in-
cluding the permanent removal, replacement, 
and disposal of the covered communications 
equipment or services identified under sub-
section (d)(5)(A)(i). 
(4) FINAL CERTIFICATION.— 
(A) IN GENERAL.—The Commission shall 
require a recipient of a reimbursement under 
the Program to submit to the Commission, in 
a form and at an appropriate time to be deter-
mined by the Commission, a certification stat-
ing that the recipient— 
(i) has fully complied with (or is in 
the process of complying with) all terms 
and conditions of the Program; 
(ii) has fully complied with (or is in 
the process of complying with) the commit-
ments made in the application of the re-
cipient for the reimbursement; 
(iii) has permanently removed from 
the communications network of the recipi-
ent, replaced, and disposed of (or is in the 
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process of permanently removing, replac-
ing, and disposing of) all covered commu-
nications equipment or services that were 
in the network of the recipient as of the 
date of the submission of the application of 
the recipient for the reimbursement; and 
(iv) has fully complied with (or is in 
the process of complying with) the timeline 
submitted by the recipient under subpara-
graph (A)(ii) of paragraph (5) of sub-
section (d) and the other requirements of 
such paragraph. 
(B) UPDATED CERTIFICATION.—If, at the 
time when a recipient of a reimbursement under 
the Program submits a certification under sub-
paragraph (A), the recipient has not fully com-
plied as described in clause (i), (ii), or (iv) of 
such subparagraph or has not completed the 
permanent removal, replacement, and disposal 
described in clause (iii) of such subparagraph, 
the Commission shall require the recipient to 
file an updated certification when the recipient 
has fully complied as described in such clause 
(i), (ii), or (iv) or completed such permanent re-
moval, replacement, and disposal. 
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(f) EFFECT OF REMOVAL OF EQUIPMENT OR SERV-
ICE FROM LIST.— 
(1) IN GENERAL.—If, after the date on which 
a recipient of a reimbursement under the Program 
submits the application for the reimbursement, any 
covered communications equipment or service that is 
in the network of the recipient as of such date is re-
moved from the list published under section 2(a), 
the recipient 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 dis-
posal of such equipment or service and remain 
subject to the requirements of this section to 
remove, replace, and dispose of such equipment 
or service as if such equipment or service con-
tinued 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 
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