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utilizing SLFRF funds to procure equipment from certain providers from the People's Republic <br />of China that may pose a national security risk. These commenters pointed out that the 2019 <br />National Defense Authorization Act (NDAA) and the FCC's Universal Service Fund have <br />similar prohibitions. Further, several commenters requested that Treasury explicitly include <br />cybersecurity costs as an eligible use for broadband infrastructure investment given the growing <br />threat of cyber-attacks and cyber-intrusions into the nation's infrastructure. <br />Treasury Response: Treasury highlights that investments in broadband infrastructure <br />must be carried out in ways that comply with applicable federal laws, including the 2019 NDAA. <br />Among other requirements contained in 2 C.F.R. Part 200, 2 C.F.R. 200.216 implements certain <br />provisions of the NDAA and contains prohibitions on the use of federal financial assistance to <br />procure or obtain certain telecommunications and video surveillance services or equipment <br />provided or produced by designated entities, including certain entities owned or controlled by the <br />People's Republic of China. In addition, 2 C.F.R. 200.471 provides that certain <br />telecommunications and video surveillance costs associated with 2 C.F.R. 200.216 are <br />unallowable. <br />Further, the final rule allows for modernization of cybersecurity for existing and new <br />broadband infrastructure as an eligible use under sections 602(c)(1)(D) and 603(c)(1)(D) as such <br />investments are necessary for the reliability and resiliency of broadband infrastructure.345 <br />Recipients may provide necessary investments in cybersecurity, including modernization of <br />hardware and software, for existing and new broadband infrastructure regardless of their speed <br />delivery standards. The final rule maintains the interim final rule's provision that allows for <br />345 For more on the importance of cybersecurity to the reliability and resiliency of broadband networks, see: Federal <br />Communications Commission, https://docs.fcc.gov/public/attachments/FCC-10-63A1.doc; Brookings Institute, <br />Protecting the Cybersecurity of America's Networks (February 11, 2021), <br />https://www.brookings.edu/blog/techtank/202 1 /02/ 11 /protecting-the-cybersecurity-of-americas-networks/. <br />312 <br />