The FCC votes to block Huawei from billions in federal aid

Illustration by William Joel / The Verge

In a unanimous vote, the Federal Communications Commission has moved to block United States telecoms from using critical federal funds to buy Huawei equipment.

Under the new rule adopted by the commission, wireless carriers can’t use money from the Universal Service Fund (USF) to make purchases from companies deemed national security threats. The fund provides billions of dollars in subsidies for companies to offer wireless service around the country. Through the vote, the FCC has initially named two Chinese telecommunications companies as national security threats: Huawei and ZTE.

“Given the threats posed by Huawei and ZTE to America’s security and our 5G future,” FCC chairman Ajit Pai said, “this FCC will not sit idly…

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