FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRWOMAN June 15, 2022 The Honorable Maria Cantwell Chair Committee on Commerce, Science, and Transportation United States Senate 512 Dirksen Senate Office Building Washington, DC 20510 Dear Madam Chair: As you know, in the Secure and Trusted Communications Networks Act (the “Act”), Congress charged the Federal Communications Commission with developing a Reimbursement Program to assist with the removal, replacement, and disposal of equipment that could pose a risk to the security of our nation’s communications networks. In the Consolidated Appropriations Act, 2021, Congress appropriated $1.9 billion for the Commission to complete this task. This letter provides a further update on the current status of the Reimbursement Program. On February 4, 2022, on behalf of the Commission, I notified Congress that demand for Reimbursement Program support was $5.6 billion and, as such, $1,000,000,000 would not be sufficient to fully fund all approved applications for reimbursements. This notification was required by Section 4(d)(5)(B) of the Act. On June 1, 2022, on behalf of the Commission, I followed up with a letter further detailing the preliminary results of our ongoing application review. In it, I noted that as a result of the Commission’s review up to that point, gross cost estimate demand for the Program had been reduced from approximately $5.6 billion to approximately $5.3 billion. I also noted that in our initial review we determined that many applications had material deficiencies, including a lack of adequate cost estimates or sufficient supporting materials. While the Act contemplates that the Commission complete its initial review of applications by June 15, 2022, Section 4(d)(3)(B) requires the Commission to provide applicants an opportunity to cure these deficiencies and amend their applications and expressly provides for the extension of the June 15, 2022, deadline for this purpose. In my letter, I committed to updating you regarding these applications and our expected completion date. Of the 181 applications filed with the Commission, 122 were found to be initially materially deficient. The agency has notified each of these applicants that they will have a 15- day period to amend and cure these defects. The Commission will promptly review any amended applications and expects to complete this process by July 15, 2022. At that time, the agency will provide Congress with an updated cost estimate for the Reimbursement Program. We continue to believe that total demand at that time will exceed the amount appropriated for the Reimbursement Program, for the reasons set forth in my June 1, 2022, letter. Page 2—The Honorable Maria Cantwell Absent an additional appropriation, the Commission will need to apply the prioritization scheme Congress specified in the Consolidated Appropriations Act, 2021. Under this scheme, the Commission will allocate funding first to approved applications that have 2,000,000 or fewer customers, then to approved applications from accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services and from health care providers and libraries providing advanced communications services, and finally to any remaining approved applications. At this time, all but one of the eligible applicants falls within the first prioritization group, and the collective demand of these applicants exceeds available funds for the Program. As such, the Commission will prorate reimbursement funds equally to each eligible applicant in the first prioritization group as required by the Commission’s rules implementing the Consolidated Appropriations Act, 2021. Thank you for your partnership on this important effort. We will continue to keep you apprised of our progress and the status of Reimbursement Program demand. Sincerely, Jessica Rosenworcel FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRWOMAN June 15, 2022 The Honorable Roger Wicker Ranking Member Committee on Commerce, Science, and Transportation United States Senate 425 Hart Senate Office Building Washington, DC 20510 Dear Ranking Member Wicker: As you know, in the Secure and Trusted Communications Networks Act (the “Act”), Congress charged the Federal Communications Commission with developing a Reimbursement Program to assist with the removal, replacement, and disposal of equipment that could pose a risk to the security of our nation’s communications networks. In the Consolidated Appropriations Act, 2021, Congress appropriated $1.9 billion for the Commission to complete this task. This letter provides a further update on the current status of the Reimbursement Program. On February 4, 2022, on behalf of the Commission, I notified Congress that demand for Reimbursement Program support was $5.6 billion and, as such, $1,000,000,000 would not be sufficient to fully fund all approved applications for reimbursements. This notification was required by Section 4(d)(5)(B) of the Act. On June 1, 2022, on behalf of the Commission, I followed up with a letter further detailing the preliminary results of our ongoing application review. In it, I noted that as a result of the Commission’s review up to that point, gross cost estimate demand for the Program had been reduced from approximately $5.6 billion to approximately $5.3 billion. I also noted that in our initial review we determined that many applications had material deficiencies, including a lack of adequate cost estimates or sufficient supporting materials. While the Act contemplates that the Commission complete its initial review of applications by June 15, 2022, Section 4(d)(3)(B) requires the Commission to provide applicants an opportunity to cure these deficiencies and amend their applications and expressly provides for the extension of the June 15, 2022, deadline for this purpose. In my letter, I committed to updating you regarding these applications and our expected completion date. Of the 181 applications filed with the Commission, 122 were found to be initially materially deficient. The agency has notified each of these applicants that they will have a 15- day period to amend and cure these defects. The Commission will promptly review any amended applications and expects to complete this process by July 15, 2022. At that time, the agency will provide Congress with an updated cost estimate for the Reimbursement Program. We continue to believe that total demand at that time will exceed the amount appropriated for the Reimbursement Program, for the reasons set forth in my June 1, 2022, letter. Page 2—The Honorable Roger Wicker Absent an additional appropriation, the Commission will need to apply the prioritization scheme Congress specified in the Consolidated Appropriations Act, 2021. Under this scheme, the Commission will allocate funding first to approved applications that have 2,000,000 or fewer customers, then to approved applications from accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services and from health care providers and libraries providing advanced communications services, and finally to any remaining approved applications. At this time, all but one of the eligible applicants falls within the first prioritization group, and the collective demand of these applicants exceeds available funds for the Program. As such, the Commission will prorate reimbursement funds equally to each eligible applicant in the first prioritization group as required by the Commission’s rules implementing the Consolidated Appropriations Act, 2021. Thank you for your partnership on this important effort. We will continue to keep you apprised of our progress and the status of Reimbursement Program demand. Sincerely, Jessica Rosenworcel FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRWOMAN June 15, 2022 The Honorable Cathy McMorris Rodgers Ranking Member Committee on Energy and Commerce U.S. House of Representatives 2322A Rayburn House Office Building Washington, DC 20515 Dear Ranking Member McMorris Rodgers: As you know, in the Secure and Trusted Communications Networks Act (the “Act”), Congress charged the Federal Communications Commission with developing a Reimbursement Program to assist with the removal, replacement, and disposal of equipment that could pose a risk to the security of our nation’s communications networks. In the Consolidated Appropriations Act, 2021, Congress appropriated $1.9 billion for the Commission to complete this task. This letter provides a further update on the current status of the Reimbursement Program. On February 4, 2022, on behalf of the Commission, I notified Congress that demand for Reimbursement Program support was $5.6 billion and, as such, $1,000,000,000 would not be sufficient to fully fund all approved applications for reimbursements. This notification was required by Section 4(d)(5)(B) of the Act. On June 1, 2022, on behalf of the Commission, I followed up with a letter further detailing the preliminary results of our ongoing application review. In it, I noted that as a result of the Commission’s review up to that point, gross cost estimate demand for the Program had been reduced from approximately $5.6 billion to approximately $5.3 billion. I also noted that in our initial review we determined that many applications had material deficiencies, including a lack of adequate cost estimates or sufficient supporting materials. While the Act contemplates that the Commission complete its initial review of applications by June 15, 2022, Section 4(d)(3)(B) requires the Commission to provide applicants an opportunity to cure these deficiencies and amend their applications and expressly provides for the extension of the June 15, 2022, deadline for this purpose. In my letter, I committed to updating you regarding these applications and our expected completion date. Of the 181 applications filed with the Commission, 122 were found to be initially materially deficient. The agency has notified each of these applicants that they will have a 15- day period to amend and cure these defects. The Commission will promptly review any amended applications and expects to complete this process by July 15, 2022. At that time, the agency will provide Congress with an updated cost estimate for the Reimbursement Program. We continue to believe that total demand at that time will exceed the amount appropriated for the Reimbursement Program, for the reasons set forth in my June 1, 2022, letter. Page 2—The Honorable Cathy McMorris Rodgers Absent an additional appropriation, the Commission will need to apply the prioritization scheme Congress specified in the Consolidated Appropriations Act, 2021. Under this scheme, the Commission will allocate funding first to approved applications that have 2,000,000 or fewer customers, then to approved applications from accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services and from health care providers and libraries providing advanced communications services, and finally to any remaining approved applications. At this time, all but one of the eligible applicants falls within the first prioritization group, and the collective demand of these applicants exceeds available funds for the Program. As such, the Commission will prorate reimbursement funds equally to each eligible applicant in the first prioritization group as required by the Commission’s rules implementing the Consolidated Appropriations Act, 2021. Thank you for your partnership on this important effort. We will continue to keep you apprised of our progress and the status of Reimbursement Program demand. Sincerely, Jessica Rosenworcel FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRWOMAN June 15, 2022 The Honorable Rosa DeLauro Chairwoman Committee on Appropriations U.S. House of Representatives H-305 Capitol Building Washington, DC 20515 Dear Chairwoman DeLauro: As you know, in the Secure and Trusted Communications Networks Act (the “Act”), Congress charged the Federal Communications Commission with developing a Reimbursement Program to assist with the removal, replacement, and disposal of equipment that could pose a risk to the security of our nation’s communications networks. In the Consolidated Appropriations Act, 2021, Congress appropriated $1.9 billion for the Commission to complete this task. This letter provides a further update on the current status of the Reimbursement Program. On February 4, 2022, on behalf of the Commission, I notified Congress that demand for Reimbursement Program support was $5.6 billion and, as such, $1,000,000,000 would not be sufficient to fully fund all approved applications for reimbursements. This notification was required by Section 4(d)(5)(B) of the Act. On June 1, 2022, on behalf of the Commission, I followed up with a letter further detailing the preliminary results of our ongoing application review. In it, I noted that as a result of the Commission’s review up to that point, gross cost estimate demand for the Program had been reduced from approximately $5.6 billion to approximately $5.3 billion. I also noted that in our initial review we determined that many applications had material deficiencies, including a lack of adequate cost estimates or sufficient supporting materials. While the Act contemplates that the Commission complete its initial review of applications by June 15, 2022, Section 4(d)(3)(B) requires the Commission to provide applicants an opportunity to cure these deficiencies and amend their applications and expressly provides for the extension of the June 15, 2022, deadline for this purpose. In my letter, I committed to updating you regarding these applications and our expected completion date. Of the 181 applications filed with the Commission, 122 were found to be initially materially deficient. The agency has notified each of these applicants that they will have a 15- day period to amend and cure these defects. The Commission will promptly review any amended applications and expects to complete this process by July 15, 2022. At that time, the agency will provide Congress with an updated cost estimate for the Reimbursement Program. We continue to believe that total demand at that time will exceed the amount appropriated for the Reimbursement Program, for the reasons set forth in my June 1, 2022, letter. Page 2—The Honorable Rosa DeLauro Absent an additional appropriation, the Commission will need to apply the prioritization scheme Congress specified in the Consolidated Appropriations Act, 2021. Under this scheme, the Commission will allocate funding first to approved applications that have 2,000,000 or fewer customers, then to approved applications from accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services and from health care providers and libraries providing advanced communications services, and finally to any remaining approved applications. At this time, all but one of the eligible applicants falls within the first prioritization group, and the collective demand of these applicants exceeds available funds for the Program. As such, the Commission will prorate reimbursement funds equally to each eligible applicant in the first prioritization group as required by the Commission’s rules implementing the Consolidated Appropriations Act, 2021. Thank you for your partnership on this important effort. We will continue to keep you apprised of our progress and the status of Reimbursement Program demand. Sincerely, Jessica Rosenworcel FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRWOMAN June 15, 2022 The Honorable Kay Granger Ranking Member Committee on Appropriations U.S. House of Representatives 1016 Longworth House Office Building Washington, DC 20515 Dear Ranking Member Granger: As you know, in the Secure and Trusted Communications Networks Act (the “Act”), Congress charged the Federal Communications Commission with developing a Reimbursement Program to assist with the removal, replacement, and disposal of equipment that could pose a risk to the security of our nation’s communications networks. In the Consolidated Appropriations Act, 2021, Congress appropriated $1.9 billion for the Commission to complete this task. This letter provides a further update on the current status of the Reimbursement Program. On February 4, 2022, on behalf of the Commission, I notified Congress that demand for Reimbursement Program support was $5.6 billion and, as such, $1,000,000,000 would not be sufficient to fully fund all approved applications for reimbursements. This notification was required by Section 4(d)(5)(B) of the Act. On June 1, 2022, on behalf of the Commission, I followed up with a letter further detailing the preliminary results of our ongoing application review. In it, I noted that as a result of the Commission’s review up to that point, gross cost estimate demand for the Program had been reduced from approximately $5.6 billion to approximately $5.3 billion. I also noted that in our initial review we determined that many applications had material deficiencies, including a lack of adequate cost estimates or sufficient supporting materials. While the Act contemplates that the Commission complete its initial review of applications by June 15, 2022, Section 4(d)(3)(B) requires the Commission to provide applicants an opportunity to cure these deficiencies and amend their applications and expressly provides for the extension of the June 15, 2022, deadline for this purpose. In my letter, I committed to updating you regarding these applications and our expected completion date. Of the 181 applications filed with the Commission, 122 were found to be initially materially deficient. The agency has notified each of these applicants that they will have a 15- day period to amend and cure these defects. The Commission will promptly review any amended applications and expects to complete this process by July 15, 2022. At that time, the agency will provide Congress with an updated cost estimate for the Reimbursement Program. We continue to believe that total demand at that time will exceed the amount appropriated for the Reimbursement Program, for the reasons set forth in my June 1, 2022, letter. Page 2—The Honorable Kay Granger Absent an additional appropriation, the Commission will need to apply the prioritization scheme Congress specified in the Consolidated Appropriations Act, 2021. Under this scheme, the Commission will allocate funding first to approved applications that have 2,000,000 or fewer customers, then to approved applications from accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services and from health care providers and libraries providing advanced communications services, and finally to any remaining approved applications. At this time, all but one of the eligible applicants falls within the first prioritization group, and the collective demand of these applicants exceeds available funds for the Program. As such, the Commission will prorate reimbursement funds equally to each eligible applicant in the first prioritization group as required by the Commission’s rules implementing the Consolidated Appropriations Act, 2021. Thank you for your partnership on this important effort. We will continue to keep you apprised of our progress and the status of Reimbursement Program demand. Sincerely, Jessica Rosenworcel FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRWOMAN June 15, 2022 The Honorable Patrick J. Leahy Chairman Committee on Appropriations United States Senate S-128 Capitol Building Washington, DC 20510 Dear Chairman Leahy: As you know, in the Secure and Trusted Communications Networks Act (the “Act”), Congress charged the Federal Communications Commission with developing a Reimbursement Program to assist with the removal, replacement, and disposal of equipment that could pose a risk to the security of our nation’s communications networks. In the Consolidated Appropriations Act, 2021, Congress appropriated $1.9 billion for the Commission to complete this task. This letter provides a further update on the current status of the Reimbursement Program. On February 4, 2022, on behalf of the Commission, I notified Congress that demand for Reimbursement Program support was $5.6 billion and, as such, $1,000,000,000 would not be sufficient to fully fund all approved applications for reimbursements. This notification was required by Section 4(d)(5)(B) of the Act. On June 1, 2022, on behalf of the Commission, I followed up with a letter further detailing the preliminary results of our ongoing application review. In it, I noted that as a result of the Commission’s review up to that point, gross cost estimate demand for the Program had been reduced from approximately $5.6 billion to approximately $5.3 billion. I also noted that in our initial review we determined that many applications had material deficiencies, including a lack of adequate cost estimates or sufficient supporting materials. While the Act contemplates that the Commission complete its initial review of applications by June 15, 2022, Section 4(d)(3)(B) requires the Commission to provide applicants an opportunity to cure these deficiencies and amend their applications and expressly provides for the extension of the June 15, 2022, deadline for this purpose. In my letter, I committed to updating you regarding these applications and our expected completion date. Of the 181 applications filed with the Commission, 122 were found to be initially materially deficient. The agency has notified each of these applicants that they will have a 15- day period to amend and cure these defects. The Commission will promptly review any amended applications and expects to complete this process by July 15, 2022. At that time, the agency will provide Congress with an updated cost estimate for the Reimbursement Program. We continue to believe that total demand at that time will exceed the amount appropriated for the Reimbursement Program, for the reasons set forth in my June 1, 2022, letter. Page 2—The Honorable Patrick J. Leahy Absent an additional appropriation, the Commission will need to apply the prioritization scheme Congress specified in the Consolidated Appropriations Act, 2021. Under this scheme, the Commission will allocate funding first to approved applications that have 2,000,000 or fewer customers, then to approved applications from accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services and from health care providers and libraries providing advanced communications services, and finally to any remaining approved applications. At this time, all but one of the eligible applicants falls within the first prioritization group, and the collective demand of these applicants exceeds available funds for the Program. As such, the Commission will prorate reimbursement funds equally to each eligible applicant in the first prioritization group as required by the Commission’s rules implementing the Consolidated Appropriations Act, 2021. Thank you for your partnership on this important effort. We will continue to keep you apprised of our progress and the status of Reimbursement Program demand. Sincerely, Jessica Rosenworcel FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRWOMAN June 15, 2022 The Honorable Richard C. Shelby Ranking Member Committee on Appropriations United States Senate S-146A Capitol Building Washington, DC 20510 Dear Ranking Member Shelby: As you know, in the Secure and Trusted Communications Networks Act (the “Act”), Congress charged the Federal Communications Commission with developing a Reimbursement Program to assist with the removal, replacement, and disposal of equipment that could pose a risk to the security of our nation’s communications networks. In the Consolidated Appropriations Act, 2021, Congress appropriated $1.9 billion for the Commission to complete this task. This letter provides a further update on the current status of the Reimbursement Program. On February 4, 2022, on behalf of the Commission, I notified Congress that demand for Reimbursement Program support was $5.6 billion and, as such, $1,000,000,000 would not be sufficient to fully fund all approved applications for reimbursements. This notification was required by Section 4(d)(5)(B) of the Act. On June 1, 2022, on behalf of the Commission, I followed up with a letter further detailing the preliminary results of our ongoing application review. In it, I noted that as a result of the Commission’s review up to that point, gross cost estimate demand for the Program had been reduced from approximately $5.6 billion to approximately $5.3 billion. I also noted that in our initial review we determined that many applications had material deficiencies, including a lack of adequate cost estimates or sufficient supporting materials. While the Act contemplates that the Commission complete its initial review of applications by June 15, 2022, Section 4(d)(3)(B) requires the Commission to provide applicants an opportunity to cure these deficiencies and amend their applications and expressly provides for the extension of the June 15, 2022, deadline for this purpose. In my letter, I committed to updating you regarding these applications and our expected completion date. Of the 181 applications filed with the Commission, 122 were found to be initially materially deficient. The agency has notified each of these applicants that they will have a 15- day period to amend and cure these defects. The Commission will promptly review any amended applications and expects to complete this process by July 15, 2022. At that time, the agency will provide Congress with an updated cost estimate for the Reimbursement Program. We continue to believe that total demand at that time will exceed the amount appropriated for the Reimbursement Program, for the reasons set forth in my June 1, 2022, letter. Page 2—The Honorable Richard C. Shelby Absent an additional appropriation, the Commission will need to apply the prioritization scheme Congress specified in the Consolidated Appropriations Act, 2021. Under this scheme, the Commission will allocate funding first to approved applications that have 2,000,000 or fewer customers, then to approved applications from accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services and from health care providers and libraries providing advanced communications services, and finally to any remaining approved applications. At this time, all but one of the eligible applicants falls within the first prioritization group, and the collective demand of these applicants exceeds available funds for the Program. As such, the Commission will prorate reimbursement funds equally to each eligible applicant in the first prioritization group as required by the Commission’s rules implementing the Consolidated Appropriations Act, 2021. Thank you for your partnership on this important effort. We will continue to keep you apprised of our progress and the status of Reimbursement Program demand. Sincerely, Jessica Rosenworcel FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRWOMAN June 15, 2022 The Honorable Frank Pallone Chairman Committee on Energy and Commerce U.S. House of Representatives 2125 Rayburn House Office Building Washington, DC 20515 Dear Chairman Pallone: As you know, in the Secure and Trusted Communications Networks Act (the “Act”), Congress charged the Federal Communications Commission with developing a Reimbursement Program to assist with the removal, replacement, and disposal of equipment that could pose a risk to the security of our nation’s communications networks. In the Consolidated Appropriations Act, 2021, Congress appropriated $1.9 billion for the Commission to complete this task. This letter provides a further update on the current status of the Reimbursement Program. On February 4, 2022, on behalf of the Commission, I notified Congress that demand for Reimbursement Program support was $5.6 billion and, as such, $1,000,000,000 would not be sufficient to fully fund all approved applications for reimbursements. This notification was required by Section 4(d)(5)(B) of the Act. On June 1, 2022, on behalf of the Commission, I followed up with a letter further detailing the preliminary results of our ongoing application review. In it, I noted that as a result of the Commission’s review up to that point, gross cost estimate demand for the Program had been reduced from approximately $5.6 billion to approximately $5.3 billion. I also noted that in our initial review we determined that many applications had material deficiencies, including a lack of adequate cost estimates or sufficient supporting materials. While the Act contemplates that the Commission complete its initial review of applications by June 15, 2022, Section 4(d)(3)(B) requires the Commission to provide applicants an opportunity to cure these deficiencies and amend their applications and expressly provides for the extension of the June 15, 2022, deadline for this purpose. In my letter, I committed to updating you regarding these applications and our expected completion date. Of the 181 applications filed with the Commission, 122 were found to be initially materially deficient. The agency has notified each of these applicants that they will have a 15- day period to amend and cure these defects. The Commission will promptly review any amended applications and expects to complete this process by July 15, 2022. At that time, the agency will provide Congress with an updated cost estimate for the Reimbursement Program. We continue to believe that total demand at that time will exceed the amount appropriated for the Reimbursement Program, for the reasons set forth in my June 1, 2022, letter. Page 2—The Honorable Frank Pallone Absent an additional appropriation, the Commission will need to apply the prioritization scheme Congress specified in the Consolidated Appropriations Act, 2021. Under this scheme, the Commission will allocate funding first to approved applications that have 2,000,000 or fewer customers, then to approved applications from accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services and from health care providers and libraries providing advanced communications services, and finally to any remaining approved applications. At this time, all but one of the eligible applicants falls within the first prioritization group, and the collective demand of these applicants exceeds available funds for the Program. As such, the Commission will prorate reimbursement funds equally to each eligible applicant in the first prioritization group as required by the Commission’s rules implementing the Consolidated Appropriations Act, 2021. Thank you for your partnership on this important effort. We will continue to keep you apprised of our progress and the status of Reimbursement Program demand. Sincerely, Jessica Rosenworcel