FCC Proposes Prohibiting Universal Service Spending On Equipment And Services From Companies That Pose National Security Threats

The Federal Communications Commission is proposing to help protect the security of the nation’s communications networks through its stewardship of the over $8.5 billion a year Universal Service Fund (USF). The FCC is seeking comment on a proposal to prohibit use of USF funds on the purchase of equipment or services from any company that poses a national security threat to the integrity of US communications networks or the communications supply chain. The Notice of Proposed Rulemaking also seeks comment on a number of issues, including:

• How best to implement the proposed prohibition on the use of USF support going forward
• What types of equipment and services should be covered by the proposed rule
• How the FCC should identify, and how USF recipients can learn, which suppliers are covered by the proposed rule
• The costs and benefits of the proposed rule
• How best to enforce the proposed rule

The FCC’s proposal is intended to ensure that USF funds are not used in a way that undermines or poses a threat to our national security.