Appeals Court Upholds FCC’s Ban on USF Money for Huawei Equipment

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The 5th Circuit Court of Appeals has upheld the FCC’s 2019 order banning the use of Universal Service Fund (USF) support to purchase equipment and services from “covered companies”—those deemed a national security threat.  Huawei has been deemed a covered company by the FCC’s Public Safety and Homeland Security Bureau.

Huawei appealed the FCC’s 2019 order, claiming in part that the agency did not have the legal authority for the ban.  The 5th Circuit ruled that the FCC has the legal authority to carry out its ban on USF support for covered companies. 

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