Senate Passes Defense Bill with $3 Billion in Rip and Replace Funding

WASHINGTON, Dec. 18, 2024 – The Senate passed a major defense bill Wednesday that included funding for the Federal Communications Commission’s Rip and Replace program. President Joe Biden is now expected to sign the bill into law.

The program, which got off the ground in 2021 to reimburse smaller telecom providers for swapping Chinese gear out of their networks, has been facing a funding shortfall of about $3 billion. That’s led to providers being unable to meet the one-year completion deadline and asking the agency for extensions to avoid penalties, all while their equipment continues to age. 

“With the current funding levels, Reimbursement Program participants have been left in an untenable situation for over three years facing partial or complete shutdown of service given that they have had insufficient funds to remove and replace their unsecure equipment,” the Rural Wireless Association, which represents participating carriers, said in a statement.

FCC Chairwoman Jessica Rosenworcel told Congress earlier this month 30 of the 126 approved providers had finished work, with half the participants saying they couldn't do so without more money. The agency has been pushing lawmakers to fully fund the program.

“We are overwhelmingly pleased that Congress has passed legislation to fully fund the ‘Rip and Replace’ program,” Competitive Carriers Association CEO Tim Donovan said in a statement. “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.”

Donovan said the group, which represents both rural and national wireless carriers, was a major part of the industry lobbying effort to get funding across the finish line.

The bill would allow the FCC to borrow from the U.S. Treasury to bridge the shortfall. The agency would be authorized to auction off spectrum licenses in the AWS-3 band—already sold off but returned by Dish after a legal dispute—as a means of recouping the cash. Analysts at New Street Research have estimated the airwaves could fetch $3.4 billion.

“Network security is a national priority, and providers will now have the resources needed to help protect their networks from intrusions and other threats. NTCA and its members thank Congress for passing this important funding and look forward to seeing the bill signed into law,” Shirley Bloomfield, CEO of the rural broadband trade group, said in a statement.