Two U.S. senators have urged that funds from a $1.9 trillion government subsidy measure be banned from being used to purchase telecommunications equipment from Huawei, ZTE, and other companies considered a threat to U.S. security, according to media reports.

In late June 2020, the Federal Communications Commission (FCC) issued a statement officially listing Huawei and ZTE as "national security threats" and prohibiting U.S. companies from using $8.3 billion in government funds to purchase equipment from the two companies.

After being classified by the FCC as a so-called "national security threat," Huawei filed an appeal in U.S. court in February of this year to continue its legal challenge to the U.S. decision.

Last December, the FCC finalized a plan to require carriers that use ZTE or Huawei equipment in their networks to remove or replace it, as the use of Huawei and ZTE equipment in U.S. networks is considered to be detrimental to national security.

However, few carriers have chosen to remove Huawei and ZTE equipment already in use, mainly because carriers cannot afford the cost without federal assistance.

In mid-July, the Federal Communications Commission voted unanimously to approve a compensation package involving $1.9 billion to help rural U.S. carriers replace equipment from Chinese companies such as Huawei and ZTE used in their networks.