[House Report 119-73]
[From the U.S. Government Publishing Office]
119th Congress } { REPORT
HOUSE OF REPRESENTATIVES
1st Session } { 119-73
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FOREIGN ADVERSARY COMMUNICATIONS
TRANSPARENCY ACT
_______
April 24, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Guthrie, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 906]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 906) to direct the Federal Communications
Commission to publish a list of entities that hold
authorizations, licenses, or other grants of authority issued
by the Commission and that have certain foreign ownership, and
for other purposes, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Committee Action................................................. 2
Committee Votes.................................................. 3
Oversight Findings and Recommendations........................... 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Congressional Budget Office Estimate............................. 3
Federal Mandates Statement....................................... 3
Statement of General Performance Goals and Objectives............ 4
Duplication of Federal Programs.................................. 4
Related Committee and Subcommittee Hearings...................... 4
Committee Cost Estimate.......................................... 4
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 4
Advisory Committee Statement..................................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 6
PURPOSE AND SUMMARY
H.R. 906, the Foreign Adversary Communications Transparency
Act, was introduced by Representatives Robert J. Wittman (R-
VA), Thomas H. Kean (R-NJ), Ro Khanna (D-CA), and Kathy Castor
(D-FL) on January 31, 2025. It requires the Federal
Communications Commission (FCC) to publish a list on its
website of entities holding Federal Communications Commission
(FCC) authorizations, licenses, or grants of authority and that
have ties to foreign adversaries.
BACKGROUND AND NEED FOR LEGISLATION
Foreign adversaries of the United States pose a significant
threat to American communications networks. These adversary
governments, and the untrusted vendors affiliated with them,
could use their presence in U.S. communications networks to
``provide [an] intelligence advantage'' and to ``harm American
national security and the privacy of Americans.''\1\
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\1\Securing Communications Networks From Foreign Adversaries,
Hearing before the Sub. on Commc'n. and Tech., H. Comm. on Energy and
Commerce, 118th Cong. (2024) (Written Testimony of James Andrew Lewis
at 4).
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Congress has taken steps to address this threat. In 2020,
Congress enacted the Secure and Trusted Communications Networks
Act to remove communications equipment and services from
untrusted vendors, such as Huawei and ZTE, from U.S.
communications networks.\2\ The following year, Congress passed
the Secure Equipment Act to prohibit the FCC from authorizing
communications equipment from untrusted vendors.\3\
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\2\Secure and Trusted Communications Networks Act of 2019, P.L.
116-124 (2020), codified at 47 U.S.C. 1601, et seq.
\3\Secure Equipment Act of 2021, P.L. 117-55 (2021).
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Removing untrusted communications equipment and services
from U.S. communications networks is an important first step,
but adversaries and their affiliates also can be present in
these networks in other ways. Their direct and indirect holding
of licenses, authorizations, and other authorities granted by
the FCC, such as spectrum licenses and cable landing licenses,
allow these entities to legally access and use American
communications networks.\4\
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\4\See, e.g., Federal Communications Commission, Order on
Revocation and Termination, China Telecom (Americas) Corporation (Nov.
2021) (GN Docket No. 20-109).
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Given the threat, transparency on whether an entity with
ties to a foreign adversary holds licenses, authorizations, or
other authorities granted by the FCC would assist the public,
particularly the communications industry, in assessing
potential security risks associated with partnerships or
transactions involving those entities. Moreover, this
transparency will allow other government stakeholders to better
identify national security threats posed by these entities,
which can be used to further strengthen communications networks
in the United States.
COMMITTEE ACTION
On January 11, 2024, the Subcommittee on Communications and
Technology held a hearing entitled, ``Safeguarding Americans'
Communications: Strengthening Cybersecurity in a Digital Era.''
The Subcommittee received testimony from:
Jim Richberg, Head of Cyber Policy,
Fortinet;
Tobin Richardson, President and CEO,
Connectivity Standards Alliance;
Clete Johnson, Senior Fellow, Center for
Strategic and International Studies; and
Alan Butler, Executive Director and
President, Electronic Privacy Information Center.
On February 15, 2024, the Subcommittee on Communications
and Technology held a hearing entitled, ``Securing
Communications Networks from Foreign Adversaries.'' The
Subcommittee received testimony from:
James Lewis, Senior Vice President, Center
for Strategic and International Studies;
Craig Singleton, China Program Senior
Director and Senior Fellow, Foundation of Defense of
Democracies; and
Lindsay Gorman, Senior Fellow for Emerging
Technologies, German Marshall Fund's Alliance for
Securing Democracy.
On March 12, 2024, the Subcommittee on Communications and
Technology met in open markup session and forwarded the Foreign
Adversary Communications Transparency Act (H.R. 820 as
introduced in the 118th Congress), as amended, to the full
Committee by a record vote of 22 yeas and 0 nays.
On March 20, 2024, the full Committee on Energy and
Commerce met in open markup session and ordered H.R. 820, as
amended, favorably reported to the House by a record vote of 44
yeas and 0 nays.
On April 8, 2025, the full Committee on Energy and Commerce
met in open markup session and ordered H.R. 906, favorably
reported to the House by a voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. There were no record votes taken in connection with
ordering H.R. 906 reported.
OVERSIGHT FINDINGS AND RECOMMENDATIONS
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held a hearing and made findings that
are reflected in this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 906 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to direct
the FCC to publish a list on its website of entities holding
FCC authorizations, licenses, or grants of authority and that
have ties to foreign adversaries.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 906 is known to be duplicative of another Federal program,
including any program that was included in a report to Congress
pursuant to section 21 of Public Law 111-139 or the most recent
Catalog of Federal Domestic Assistance.
RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS
Pursuant to clause 3(c)(6) of rule XIII, the following
hearings were used to develop or consider H.R. 906:
On January 11, 2024, the Subcommittee on
Communications and Technology held a hearing entitled,
``Safeguarding Americans' Communications: Strengthening
Cybersecurity in a Digital Era.'' The Subcommittee
received testimony from:
Jim Richberg, Head of Cyber
Policy, Fortinet;
Tobin Richardson, President and
CEO, Connectivity Standards Alliance
Clete Johnson, Senior Fellow,
Center for Strategic and International Studies;
and
Alan Butler, Executive Director
and President, Electronic Privacy Information
Center.
On February 15, 2024, the Subcommittee on
Communications and Technology held a hearing entitled,
``Securing Communications Networks from Foreign
Adversaries.'' The Subcommittee received testimony
from:
James Lewis, Senior Vice
President, Center for Strategic and
International Studies;
Craig Singleton, China Program
Senior Director and Senior Fellow, Foundation
of Defense of Democracies; and
Lindsay Gorman, Senior Fellow
for Emerging Technologies, German Marshall
Fund's Alliance for Securing Democracy.
COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 906 contains no earmarks, limited tax
benefits, or limited tariff benefits.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
This section would designate that the short title may be
cited as the ``Foreign Adversary Communications Transparency
Act.''
Section 2. List of entities holding FCC authorizations, licenses, or
other grants of authority and having certain foreign ownership
Subsection (a) would direct the FCC to publish, within 120
days of enactment, a list of entities that hold a license
issued by the Commission pursuant to:
Section 309(j) of the Communications Act of
1934 (47 U.S.C. 309(j)); or
The Act of May 27, 1921 (47 U.S.C. 34 et
seq., commonly known as the ``Cable Landing Licensing
Act'') and Executive Order 10530 (3 U.S.C. 301 note,
relating to the performance of certain functions vested
in or subject to the approval of the President);
and where:
A covered entity holds an equity or voting
interest in the entity that must be reported to the
Commission under its ownership rules; or
An appropriate national security agency has
determined that a covered entity exerts control over
the entity, regardless of whether such covered entity
holds an equity or voting interest that must be
reported to the FCC under its ownership rules.
A covered entity is defined as the government of a covered
country, which is defined as China, North Korea, Iran, and
Russia; an entity organized under the laws of a covered
country; and a subsidiary or affiliate of an entity organized
under the laws of a covered country, regardless of where the
subsidiary or affiliate is organized.
Subsection (b) would direct the FCC to, within 18 months of
enactment, issue rules to identify entities holding any
authorization, license, or other grant of authority issued by
the Commission (other than those described in subsection (a))
and where a covered entity holds an equity or voting interest
in the entities that is required to be reported to the
Commission under its ownership rules. It is the Committee's
intent that these rules should not be duplicative of other
reporting obligations and that the Commission should seek to
minimize the burden imposed on entities subject to these rules.
Not later than one year after these rules are issued, the
Commission would be required to add the relevant entities to
the list required under subsection (a).
Subsection (c) would exempt any collection of information
carried out or sponsored by the Commission for the purpose of
implementing this section from the Paperwork Reduction Act.
Subsection (d) would require the Commission to update the
list published under subsection (a) no less than annually,
including for the entities added by the process set forth
subsection (b).
Subsection (e) would define terms used in this section,
including covered country and covered entity.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.
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