Sponsors (2)
The bill increases national security and protects critical infrastructure by prohibiting use of potentially untrusted satellite equipment, but does so at the cost of reduced market access, investment uncertainty, and possible short-term disruptions to deployments.
State governments and critical infrastructure customers (e.g., utilities): reduces the risk that U.S. satellite services or earth stations are controlled by providers using untrusted communications equipment, improving the security and resilience of communications.
Utilities and other critical infrastructure customers: protects them from reliance on potentially insecure satellite providers, lowering cyber and operational risks to essential services.
State governments and regulated entities: requires the FCC to complete rulemaking within one year to implement the prohibition, providing clearer timing and greater regulatory certainty about enforcement.
Satellite operators, investors, and U.S. customers: operators and their investors may lose or face limits on U.S. market access if deemed affiliates of covered-equipment providers, reducing competition and consumer choice.
Companies with complex ownership and potential investors: the 10% ownership threshold for what counts as 'own' creates legal uncertainty that could chill investment, mergers, and financing.
Utilities and state governments with pending applications: an immediate prohibition on grants effective at enactment could disrupt pending grant applications and delay satellite service or earth station deployments in the short term.
Based on analysis of 2 sections of legislative text.
Bars the FCC from approving satellite licenses, U.S. market access rulings, or earth‑station authorizations for entities (or affiliates with ≥10% equity) that provide 'covered communications' equipment or services.
Introduced June 5, 2025 by Debra Fischer · Last progress June 5, 2025
Prohibits the FCC from granting satellite system licenses, petitions for U.S. market access, or authorizations to use individually or blanket‑licensed earth stations if the license or authorization would be held or controlled by an entity that produces or provides “covered communications equipment or service” or by an affiliate of such an entity. The bill defines key terms (including “affiliate,” with “own” set at a 10% equity threshold) and requires the FCC to issue implementing rules within one year; the ban applies to grants on or after enactment.