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FCC to Carriers: You Want Federal Funds? Better Ditch Huawei

FCC chairman Ajit Pai is proposing eliminating government subsidies for US telecom carriers that buy from suppliers that pose a national security risk.

 & Michael Kan Principal Reporter

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Huawei is not getting any love from the Trump administration. FCC Chairman Ajit Pai on Monday proposed eliminating a government subsidy for any US telecom carrier that buys from the Chinese company.

The subsidies draw from the Universal Service Fund, an $8.5 billion FCC fund designed to connect low-income areas, schools, and libraries to the internet. Pai's proposal seeks to bar the money from going to equipment suppliers declared a "national security threat."

The chairman's proposal doesn't identify Huawei by name. But in a blog post, Pai referenced growing Congressional concerns over "certain Chinese communication equipment providers" posing a national security risk to the US.

"Hidden 'back doors' to our networks in routers, switches—and virtually any other type of telecommunications equipment—can provide an avenue for hostile governments to inject viruses, launch denial-of-service attacks, steal data, and more," Pai said in a separate statement.

In December, 18 lawmakers also sent a letter to the FCC chairman, which raised concerns about "Chinese espionage in general and Huawei' s role in that espionage in particular."

Last week, Pai responded to the lawmakers, saying he shared their concerns. "I intend to take proactive steps to help ensure the integrity of the communications supply chain," he wrote.

Pai's proposal, which goes up for vote next month, risks limiting US business for both Huawei and another Chinese supplier, ZTE. In addition to selling smartphones, the two companies also develop equipment that can power cellular networks.

However, US officials worry that same technology can be used for state-sponsored spying. In 2012, a Congressional committee declared both Huawei and ZTE a security threat over their suspected ties to the Chinese government.

Both Huawei and ZTE reject the spying allegations; neither have responded to Pai's announcement.

The proposal comes as AT&T, Verizon, and Best Buy have all reportedly stopped selling Huawei phones. In its defense, Huawei has said its phones have been built with the best security practices in mind and use Google's Android OS.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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