---
kind: "section"
citation: "47 U.S.C. § 1603"
title: "47"
title_heading: "Telecommunications"
number: "1603"
heading: "Secure and Trusted Communications Networks Reimbursement Program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/47/1603"
units:
  - "Chapter 15 — Secure and Trusted Communications Networks"
---

# §1603. Secure and Trusted Communications Networks Reimbursement Program

- (a) **In general—** The [Commission](/usc/47/1608.md?p=3) shall establish a reimbursement [program](/usc/47/1608.md?p=9), to be known as the “Secure and Trusted Communications Networks Reimbursement [Program](/usc/47/1608.md?p=9)”, to make reimbursements to providers of [advanced communications service](/usc/47/1608.md?p=1) to replace [covered communications equipment or services](/usc/47/1608.md?p=5).
- (b) **Eligibility—** The [Commission](/usc/47/1608.md?p=3) may not make a reimbursement under the [Program](/usc/47/1608.md?p=9) to a [provider of advanced communications service](/usc/47/1608.md?p=10) unless the provider—
  - (1) has 10,000,000 or fewer [customers](/usc/47/1608.md?p=6); and
  - (2) makes all of the certifications required by [subsection (d)(4)](#d-4).
- (c) **Use of funds—**
  - (1) **In general—** A [recipient](/usc/47/1608.md?p=11) of a reimbursement under the [Program](/usc/47/1608.md?p=9) shall use [reimbursement funds](/usc/47/1608.md?p=12) solely for the purposes of—
    - (A) permanently removing [covered communications equipment or services](/usc/47/1608.md?p=5) purchased, rented, leased, or otherwise obtained—
      - (i) as defined in the Report and Order of the [Commission](/usc/47/1608.md?p=3) in the matter of Protecting Against National Security Threats to the Communications Supply Chain Through FCC [Programs](/usc/47/1608.md?p=9) (FCC 19–121; WC Docket No. 18–89; adopted November 22, 2019) (in this section referred to as the “Report and Order”); or
      - (ii) as determined to be covered by both the process of the Report and Order and the Designation Orders of the [Commission](/usc/47/1608.md?p=3) on June 30, 2020 (DA 20–690; PS Docket No. 19–351; adopted June 30, 2020) (DA 20–691; PS Docket No. 19–352; adopted June 30, 2020) (in this section collectively referred to as the “Designation Orders”);
    - (B) replacing the [covered communications equipment or services](/usc/47/1608.md?p=5) removed as described in [subparagraph (A)](#c-1-A) with [communications equipment or services](/usc/47/1608.md?p=4) that are not [covered communications equipment or services](/usc/47/1608.md?p=5); and
    - (C) disposing of the [covered communications equipment or services](/usc/47/1608.md?p=5) removed as described in [subparagraph (A)](#c-1-A) in accordance with the requirements under [subsection (d)(7)](#d-7).
  - (2) **Limitations—** A [recipient](/usc/47/1608.md?p=11) of a reimbursement under the [Program](/usc/47/1608.md?p=9) may not—
    - (A) use [reimbursement funds](/usc/47/1608.md?p=12) to remove, replace, or dispose of any [covered communications equipment or service](/usc/47/1608.md?p=5) purchased, rented, leased, or otherwise obtained on or after—
      - (i) publication of the Report and Order; or
      - (ii) in the case of covered communications equipment that only became covered pursuant to the Designation Orders, June 30, 2020; or
    - (B) purchase, rent, lease, or otherwise obtain any [covered communications equipment or service](/usc/47/1608.md?p=5), using [reimbursement funds](/usc/47/1608.md?p=12) or any other funds (including funds derived from private sources).
- (d) **Implementation—**
  - (1) **Suggested replacements—**
    - (A) **Development of list—** The [Commission](/usc/47/1608.md?p=3) shall develop a list of suggested replacements of both physical and virtual communications equipment, application and management software, and services or categories of replacements of both physical and virtual communications equipment, application and management software and services.
    - (B) **Neutrality—** The list developed under [subparagraph (A)](#d-1-A) shall be technology neutral and may not advantage the use of [reimbursement funds](/usc/47/1608.md?p=12) for capital expenditures over operational expenditures, to the extent that the [Commission](/usc/47/1608.md?p=3) determines that communications services can serve as an adequate substitute for the installation of communications equipment.
  - (2) **Application process—**
    - (A) **In general—** The [Commission](/usc/47/1608.md?p=3) shall develop an application process and related forms and materials for the [Program](/usc/47/1608.md?p=9).
    - (B) **Cost estimate—**
      - (i) **Initial estimate—** The [Commission](/usc/47/1608.md?p=3) 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](/usc/47/1608.md?p=3) may require an applicant to—
        - (I) update the initial reimbursement cost estimate submitted under [clause (i)](#d-2-B-i); and
        - (II) submit additional supporting materials substantiating an updated cost estimate submitted under [subclause (I)](#d-2-B-ii-I).
    - (C) **Mitigation of burden—** In developing the application process under this paragraph, the [Commission](/usc/47/1608.md?p=3) shall take reasonable steps to mitigate the administrative burdens and costs associated with the application process, while taking into account the need to avoid waste, fraud, and abuse in the [Program](/usc/47/1608.md?p=9).
  - (3) **Application review process—**
    - (A) **Deadline—**
      - (i) **In general—** Except as provided in [clause (ii)](#d-3-A-ii) and [subparagraph (B)](#d-3-B), the [Commission](/usc/47/1608.md?p=3) shall approve or deny an application for a reimbursement under the [Program](/usc/47/1608.md?p=9) not later than 90 days after the date of the submission of the application.
      - (ii) **Additional time needed by Commission—** If the [Commission](/usc/47/1608.md?p=3) determines that, because an excessive number of applications have been filed at one time, the [Commission](/usc/47/1608.md?p=3) needs additional time for employees of the [Commission](/usc/47/1608.md?p=3) to process the applications, the [Commission](/usc/47/1608.md?p=3) may extend the deadline described in [clause (i)](#d-3-A-i) for not more than 45 days.
    - (B) **Opportunity for applicant to cure deficiency—** If the [Commission](/usc/47/1608.md?p=3) determines that an application is materially deficient (including by lacking an adequate cost estimate or adequate supporting materials), the [Commission](/usc/47/1608.md?p=3) shall provide the applicant a 15-day period to cure the defect before denying the application. If such period would extend beyond the deadline under [subparagraph (A)](#d-3-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 application for a reimbursement under the [Program](/usc/47/1608.md?p=9) shall not preclude the applicant from resubmitting the application or submitting a new application for a reimbursement under the [Program](/usc/47/1608.md?p=9) at a later date.
  - (4) **Certifications—** An applicant for a reimbursement under the [Program](/usc/47/1608.md?p=9) shall, in the application of the applicant, certify to the [Commission](/usc/47/1608.md?p=3) that—
    - (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 communications equipment or services](/usc/47/1608.md?p=5) that are in the communications network of the applicant as of such date; and
        - (II) the disposal of the equipment or services removed as described in [subclause (I)](#d-4-A-i-I) in accordance with the requirements under [paragraph (7)](#d-7); and
      - (ii) has developed a specific timeline (subject to [paragraph (6)](#d-6)) for the permanent removal, replacement, and disposal of the [covered communications equipment or services](/usc/47/1608.md?p=5) identified under [clause (i)](#d-4-A-i), which timeline shall be submitted to the [Commission](/usc/47/1608.md?p=3) 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](/usc/47/1608.md?p=5), using [reimbursement funds](/usc/47/1608.md?p=12) or any other funds (including funds derived from private sources); and
      - (ii) in developing and tailoring the risk management practices of the applicant, will consult and consider the standards, guidelines, and best practices set forth in the cybersecurity framework developed by the National Institute of Standards and Technology.
  - (5) **Distribution of reimbursement funds—**
    - (A) **In general—** Subject to [subparagraph (C)](#d-5-C), the [Commission](/usc/47/1608.md?p=3) shall make reasonable efforts to ensure that [reimbursement funds](/usc/47/1608.md?p=12) are distributed equitably among all applicants for reimbursements under the [Program](/usc/47/1608.md?p=9) according to the needs of the applicants, as identified by the applications of the applicants.
    - (B) **Notification—** If, at any time during the implementation of the [Program](/usc/47/1608.md?p=9), the [Commission](/usc/47/1608.md?p=3) determines that $1,000,000,000 will not be sufficient to fully fund all approved applications for reimbursements under the [Program](/usc/47/1608.md?p=9), the [Commission](/usc/47/1608.md?p=3) shall immediately notify—
      - (i) the Committee on Energy and Commerce and the Committee on Appropriations of the House of Representatives; and
      - (ii) the Committee on Commerce, Science, and Transportation and the Committee on Appropriations of the Senate.
    - (C) **Priority for allocation—** On and after December 27, 2020, the [Commission](/usc/47/1608.md?p=3) shall allocate sufficient [reimbursement funds](/usc/47/1608.md?p=12)—
      - (i) first, to approved applicants that have 2,000,000 or fewer [customers](/usc/47/1608.md?p=6), for removal and replacement of covered communications equipment, as defined in [section 1608 of this title](/usc/47/1608.md) or as designated by the process set forth in the Report and Order;
      - (ii) after funds have been allocated to all applicants described in [clause (i)](#d-5-C-i), to approved applicants that are accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband service, as defined in section 27.4 of title 47, Code of Federal Regulations, or any successor regulation, for removal and replacement of covered communications equipment, as defined in [section 1608 of this title](/usc/47/1608.md) or as designated by the process set forth in the Report and Order; and
      - (iii) after funds have been allocated to all applicants described in [clause (ii)](#d-5-C-ii), to any remaining approved applicants determined to be eligible for reimbursement under the [Program](/usc/47/1608.md?p=9).
  - (6) **Removal, replacement, and disposal term—**
    - (A) **Deadline—** Except as provided in subparagraphs [(B)](#d-6-B) and [(C)](#d-6-C), the permanent removal, replacement, and disposal of any [covered communications equipment or services](/usc/47/1608.md?p=5) identified under [paragraph (4)(A)(i)](#d-4-A-i) shall be completed not later than 1 year after the date on which the [Commission](/usc/47/1608.md?p=3) distributes [reimbursement funds](/usc/47/1608.md?p=12) to the [recipient](/usc/47/1608.md?p=11).
    - (B) **General extension—** The [Commission](/usc/47/1608.md?p=3) may grant an extension of the deadline described in [subparagraph (A)](#d-6-A) for 6 months to all [recipients](/usc/47/1608.md?p=11) of reimbursements under the [Program](/usc/47/1608.md?p=9) if the [Commission](/usc/47/1608.md?p=3)—
      - (i) finds that the supply of replacement [communications equipment or services](/usc/47/1608.md?p=4) needed by the [recipients](/usc/47/1608.md?p=11) to achieve the purposes of the [Program](/usc/47/1608.md?p=9) is inadequate to meet the needs of the [recipients](/usc/47/1608.md?p=11); and
      - (ii) provides notice and a detailed justification for granting the extension to—
        - (I) the Committee on Energy and Commerce of the House of Representatives; and
        - (II) the Committee on Commerce, Science, and Transportation of the Senate.
    - (C) **Individual extension—**
      - (i) **Petition—** A [recipient](/usc/47/1608.md?p=11) of a reimbursement under the [Program](/usc/47/1608.md?p=9) may petition the [Commission](/usc/47/1608.md?p=3) for an extension for such [recipient](/usc/47/1608.md?p=11) of the deadline described in [subparagraph (A)](#d-6-A) or, if the [Commission](/usc/47/1608.md?p=3) has granted an extension of such deadline under [subparagraph (B)](#d-6-B), such deadline as so extended.
      - (ii) **Grant—** The [Commission](/usc/47/1608.md?p=3) may grant a petition filed under [clause (i)](#d-6-C-i) by extending, for the [recipient](/usc/47/1608.md?p=11) that filed the petition, the deadline described in [subparagraph (A)](#d-6-A) or, if the [Commission](/usc/47/1608.md?p=3) has granted an extension of such deadline under [subparagraph (B)](#d-6-B), such deadline as so extended, for a period of not more than 6 months if the [Commission](/usc/47/1608.md?p=3) finds that, due to no fault of such [recipient](/usc/47/1608.md?p=11), such [recipient](/usc/47/1608.md?p=11) is unable to complete the permanent removal, replacement, and disposal described in [subparagraph (A)](#d-6-A).
  - (7) **Disposal of covered communications equipment or services—** The [Commission](/usc/47/1608.md?p=3) shall include in the regulations promulgated under [subsection (g)](#g) requirements for the disposal by a [recipient](/usc/47/1608.md?p=11) of a reimbursement under the [Program](/usc/47/1608.md?p=9) of [covered communications equipment or services](/usc/47/1608.md?p=5) identified under [paragraph (4)(A)(i)](#d-4-A-i) and removed from the network of the [recipient](/usc/47/1608.md?p=11) in order to prevent such equipment or services from being used in the networks of providers of [advanced communications service](/usc/47/1608.md?p=1).
  - (8) **Status updates—**
    - (A) **In general—** Not less frequently than once every 90 days beginning on the date on which the [Commission](/usc/47/1608.md?p=3) approves an application for a reimbursement under the [Program](/usc/47/1608.md?p=9), the [recipient](/usc/47/1608.md?p=11) of the reimbursement shall submit to the [Commission](/usc/47/1608.md?p=3) a status update on the work of the [recipient](/usc/47/1608.md?p=11) to permanently remove, replace, and dispose of the [covered communications equipment or services](/usc/47/1608.md?p=5) identified under [paragraph (4)(A)(i)](#d-4-A-i).
    - (B) **Public posting—** Not earlier than 30 days after the date on which the [Commission](/usc/47/1608.md?p=3) receives a status update under [subparagraph (A)](#d-8-A), the [Commission](/usc/47/1608.md?p=3) shall make such status update public on the website of the [Commission](/usc/47/1608.md?p=3).
    - (C) **Reports to Congress—** Not less frequently than once every 180 days beginning on the date on which the [Commission](/usc/47/1608.md?p=3) first makes funds available to a [recipient](/usc/47/1608.md?p=11) of a reimbursement under the [Program](/usc/47/1608.md?p=9), the [Commission](/usc/47/1608.md?p=3) shall prepare and submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on—
      - (i) the implementation of the [Program](/usc/47/1608.md?p=9) by the [Commission](/usc/47/1608.md?p=3); and
      - (ii) the work by [recipients](/usc/47/1608.md?p=11) of reimbursements under the [Program](/usc/47/1608.md?p=9) to permanently remove, replace, and dispose of [covered communications equipment or services](/usc/47/1608.md?p=5) identified under [paragraph (4)(A)(i)](#d-4-A-i).
- (e) **Measures to avoid waste, fraud, and abuse—**
  - (1) **In general—** The [Commission](/usc/47/1608.md?p=3) shall take all necessary steps to avoid waste, fraud, and abuse with respect to the [Program](/usc/47/1608.md?p=9).
  - (2) **Spending reports—** The [Commission](/usc/47/1608.md?p=3) shall require [recipients](/usc/47/1608.md?p=11) of reimbursements under the [Program](/usc/47/1608.md?p=9) to submit to the [Commission](/usc/47/1608.md?p=3) on a regular basis reports regarding how [reimbursement funds](/usc/47/1608.md?p=12) have been spent, including detailed accounting of the [covered communications equipment or services](/usc/47/1608.md?p=5) permanently removed and disposed of, and the replacement equipment or services purchased, rented, leased, or otherwise obtained, using [reimbursement funds](/usc/47/1608.md?p=12).
  - (3) **Audits, reviews, and field investigations—** The [Commission](/usc/47/1608.md?p=3) shall conduct—
    - (A) regular audits and reviews of reimbursements under the [Program](/usc/47/1608.md?p=9) to confirm that [recipients](/usc/47/1608.md?p=11) of such reimbursements are complying with this chapter; and
    - (B) random field investigations to ensure that [recipients](/usc/47/1608.md?p=11) of reimbursements under the [Program](/usc/47/1608.md?p=9) are performing the work such [recipients](/usc/47/1608.md?p=11) are required to perform under the commitments made in the applications of such [recipients](/usc/47/1608.md?p=11) for reimbursements under the [Program](/usc/47/1608.md?p=9), including the permanent removal, replacement, and disposal of the [covered communications equipment or services](/usc/47/1608.md?p=5) identified under [subsection (d)(4)(A)(i)](#d-4-A-i).
  - (4) **Final certification—**
    - (A) **In general—** The [Commission](/usc/47/1608.md?p=3) shall require a [recipient](/usc/47/1608.md?p=11) of a reimbursement under the [Program](/usc/47/1608.md?p=9) to submit to the [Commission](/usc/47/1608.md?p=3), in a form and at an appropriate time to be determined by the [Commission](/usc/47/1608.md?p=3), a certification stating that the [recipient](/usc/47/1608.md?p=11)—
      - (i) has fully complied with (or is in the process of complying with) all terms and conditions of the [Program](/usc/47/1608.md?p=9);
      - (ii) has fully complied with (or is in the process of complying with) the commitments made in the application of the [recipient](/usc/47/1608.md?p=11) for the reimbursement;
      - (iii) has permanently removed from the communications network of the [recipient](/usc/47/1608.md?p=11), replaced, and disposed of (or is in the process of permanently removing, replacing, and disposing of) all [covered communications equipment or services](/usc/47/1608.md?p=5) that were in the network of the [recipient](/usc/47/1608.md?p=11) as of the date of the submission of the application of the [recipient](/usc/47/1608.md?p=11) for the reimbursement; and
      - (iv) has fully complied with (or is in the process of complying with) the timeline submitted by the [recipient](/usc/47/1608.md?p=11) under [subparagraph (A)(ii)](#e-4-A-ii) of paragraph (4) of [subsection (d)](#d) and the other requirements of such paragraph.
    - (B) **Updated certification—** If, at the time when a [recipient](/usc/47/1608.md?p=11) of a reimbursement under the [Program](/usc/47/1608.md?p=9) submits a certification under [subparagraph (A)](#e-4-A), the [recipient](/usc/47/1608.md?p=11) has not fully complied as described in clause [(i)](#e-4-A-i), [(ii)](#e-4-A-ii), or [(iv)](#e-4-A-iv) of such subparagraph or has not completed the permanent removal, replacement, and disposal described in [clause (iii)](#e-4-A-iii) of such subparagraph, the [Commission](/usc/47/1608.md?p=3) shall require the [recipient](/usc/47/1608.md?p=11) to file an updated certification when the [recipient](/usc/47/1608.md?p=11) has fully complied as described in such clause [(i)](#e-4-A-i), [(ii)](#e-4-A-ii), or [(iv)](#e-4-A-iv) or completed such permanent removal, replacement, and disposal.
- (f) **Effect of removal of equipment or service from list—**
  - (1) **In general—** If, after the date on which a [recipient](/usc/47/1608.md?p=11) of a reimbursement under the [Program](/usc/47/1608.md?p=9) submits the application for the reimbursement, any [covered communications equipment or service](/usc/47/1608.md?p=5) that is in the network of the [recipient](/usc/47/1608.md?p=11) as of such date is removed from the list published under [section 1601(a) of this title](/usc/47/1601.md?p=a), the [recipient](/usc/47/1608.md?p=11) may—
    - (A) return to the [Commission](/usc/47/1608.md?p=3) any [reimbursement funds](/usc/47/1608.md?p=12) received for the removal, replacement, 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](/usc/47/1608.md?p=12) received for the removal, replacement, and disposal 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 continued to be on the list published under [section 1601(a) of this title](/usc/47/1601.md?p=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 [recipient](/usc/47/1608.md?p=11) returns to the [Commission](/usc/47/1608.md?p=3) [reimbursement funds](/usc/47/1608.md?p=12) under [paragraph (1)(A)](#f-1-A), such assurance may be satisfied by making an assurance that such funds have been returned.
- (g) **Rulemaking—**
  - (1) **Commencement—** Not later than 90 days after March 12, 2020, the [Commission](/usc/47/1608.md?p=3) shall commence a rulemaking to implement this section.
  - (2) **Completion—** The [Commission](/usc/47/1608.md?p=3) shall complete the rulemaking under [paragraph (1)](#g-1) not later than 1 year after March 12, 2020.
- (h) **Rule of construction regarding timing of reimbursement—** Nothing in this section shall be construed to prohibit the [Commission](/usc/47/1608.md?p=3) from making a reimbursement under the [Program](/usc/47/1608.md?p=9) to a [provider of advanced communications service](/usc/47/1608.md?p=10) before the provider incurs the cost of the permanent removal, replacement, and disposal of the [covered communications equipment or service](/usc/47/1608.md?p=5) for which the application of the provider has been approved under this section.
- (i) **Education efforts—** The [Commission](/usc/47/1608.md?p=3) shall engage in education efforts with providers of [advanced communications service](/usc/47/1608.md?p=1) to—
  - (1) encourage such providers to participate in the [Program](/usc/47/1608.md?p=9); and
  - (2) assist such providers in submitting applications for the [Program](/usc/47/1608.md?p=9).
- (j) **Separate from Federal universal service programs—** The [Program](/usc/47/1608.md?p=9) shall be separate from any Federal universal service [program](/usc/47/1608.md?p=9) established under [section 254 of this title](/usc/47/254.md).
- (k) **Limitation—** In carrying out this section, the [Commission](/usc/47/1608.md?p=3) may not expend more than $4,980,000,000.

## Source credit

(Pub. L. 116–124, § 4, Mar. 12, 2020, 134 Stat. 160; Pub. L. 116–260, div. N, title IX, § 901(1), Dec. 27, 2020, 134 Stat. 2120; Pub. L. 118–159, div. E, title LIV, § 5405, Dec. 23, 2024, 138 Stat. 2451.)

## Notes

### Editorial Notes

### Amendments

2024—Subsec. (k). Pub. L. 118–159 substituted “$4,980,000,000” for “$1,900,000,000”.

2020—Subsec. (b)(1). Pub. L. 116–260, § 901(1)(A), substituted “10,000,000” for “2,000,000”.

Subsec. (c)(1)(A). Pub. L. 116–260, § 901(1)(B)(i)(I), struck out “before” after “otherwise obtained” in introductory provisions.

Subsec. (c)(1)(A)(i). Pub. L. 116–260, § 901(1)(B)(i)(II), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “in the case of any covered communications equipment or services that are on the initial list published under section 1601(a) of this title, August 14, 2018; or”.

Subsec. (c)(1)(A)(ii). Pub. L. 116–260, § 901(1)(B)(i)(III), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “in the case of any covered communications equipment or services that are not on the initial list published under section 1601(a) of this title, the date that is 60 days after the date on which the Commission places such equipment or services on the list required by such section;”.

Subsec. (c)(2)(A)(i), (ii). Pub. L. 116–260, § 901(1)(B)(ii), amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) read as follows:

“(i) in the case of any covered communications equipment or service that is on the initial list published under section 1601(a) of this title, August 14, 2018; or

“(ii) in the case of any covered communications equipment or service that is not on the initial list published under section 1601(a) of this title, 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”.

Subsec. (d)(5)(A). Pub. L. 116–260, § 901(1)(C)(i), substituted “Subject to subparagraph (C), the Commission” for “The Commission”.

Subsec. (d)(5)(C). Pub. L. 116–260, § 901(1)(C)(ii), added subpar. (C).

Subsec. (k). Pub. L. 116–260, § 901(1)(D), added subsec. (k).