Chairwoman Rosenworcel's Update on the Secure and Trusted Communications Networks Reimbursement Program

In a letter to Members of Congress on June 1, Federal Communications Commission Chairwoman Jessica Rosenworcel said that the FCC's Secure and Trusted Communications Networks Reimbursement Program s application review process is well underway. The review to date has concluded that many of the applications the agency has received are materially deficient. This is typically because they lack an adequate cost estimate or sufficient supporting materials. The law requires the FCC to provide applicants an opportunity to cure these deficiencies and expressly provides for the extension of the June 15, 2022 application review deadline to allow for a cure period. Given the number of deficient applications, the FCC will not be able to issue funding allocations or determine true demand until the end of the statutory cure period. The FCC expects to complete its review within a matter of weeks once cured applications are filed. 

The FCC received 181 applications from 96 applicants containing $5.6 billion in gross demand for funding during the filing window. As a result of the review to date, gross cost estimate demand for the Program has been reduced from $5.6 billion to $5.3 billion. While the FCC anticipates there will be further reduction, the funds appropriated will remain less than the demand from applicants. This anticipated shortfall largely reflects three developments: first, that the Act, as amended, expanded the range of entities eligible to participate in the Reimbursement Program; second, that the preliminary cost estimates did not consider the full range of costs that were ultimately reimbursable under the law; and third, that providers have reported increased costs since the program was funded due to supply chain constraints, inflation, and the need to complete their projects within the Act’s one-year deadline.