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White House seeks funds for internet subsidies, Chinese equipment removal

White House seeks funds for internet subsidies, Chinese equipment removal
Fiber optic cables carrying internet providers are seen running into a server room at Intergate.Manhattan, a data center owned and developed by Sabey Data Center Properties, during a tour of the facility in lower Manhattan, in New York, March 20, 2013.
PHOTO: Reuters file

WASHINGTON — The White House is asking Congress for US$6 billion (S$8.24 billion) for a government broadband internet subsidy programme used by 21 million American households that is set to run out of money next year.

The Biden administration also wants US$3.1 billion to further fund removal of equipment made by Chinese telecoms giants Huawei and ZTE from US telecom networks.

The Federal Communications Commission (FCC) previously said removing the equipment, which it says poses national security risks, would cost US$4.98 billion. Congress has only approved US$1.9 billion. In 2019, Congress told the FCC to require US telecoms carriers that receive federal subsidies to purge their networks of Chinese telecoms equipment.

Congress previously allocated US$17 billion to help lower-income families and people impacted by Covid-19 to gain internet access through a US$30 per month voucher to use toward paying for internet service.

The White House says the programme known as the Affordable Connectivity Program, helps current users save over US$500 million per month on their internet bills. The US$6 billion in additional government funding would extend the programme through December 2024.

"Congress should act swiftly to fund the Affordable Connectivity Program and prevent more than 21 million households from losing access to affordable, high-speed internet," said White House National Economic Council director Lael Brainard.

Internet service providers say there are about 27 million additional US households that are eligible but are not yet enrolled.

Verizon, Comcast and AT&T have all called for Congress to extend the programme that could run out of money by March.

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