FCC 'Rip and Replace' Provision For Chinese Tech Tops Cyber Provisions in Defense Bill

The annual defense policy bill signed by President Joe Biden Monday evening allocates $3 billion to help telecom firms remove and replace insecure equipment in response to recent incursions by Chinese-linked hackers. From a report: The fiscal 2025 National Defense Authorization Act outlines Pentagon policy and military budget priorities for the year and also includes non-defense measures added as Congress wrapped up its work in December. The $895 billion spending blueprint passed the Senate and House with broad bipartisan support.

The $3 billion would go to a Federal Communications Commission program, commonly called "rip and replace," to get rid of Chinese networking equipment due to national security concerns. The effort was created in 2020 to junk equipment made by telecom giant Huawei. It had an initial investment of $1.9 billion, roughly $3 billion shy of what experts said was needed to cauterize the potential vulnerability.

Calls to replenish the fund have increased recently in the wake of two hacking campaigns by China, dubbed Volt Typhoon and Salt Typhoon, that saw hackers insert malicious code in U.S. infrastructure and break into at least eight telecom firms. The bill also includes a watered down requirement for the Defense Department to tap an independent third-party to study the feasibility of creating a U.S. Cyber Force, along with an "evaluation of alternative organizational models for the cyber forces" of the military branches.

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