The White House’s acting budget chief is pushing for a delay in implementing the law that restricts US government’s business with Huawei. The request was made in a letter by Russell T. Vought, the acting director of the Office of Management and Budget, to Vice President Mike Pence and nine members of Congress, a copy of which was seen by The Wall Street Journal.
He asked for a delay in the implementation of portions of the National Defense Authorization Act signed by President Trump last year. Part of the law prohibits US government agencies and recipients of state grants and subsidies from doing business with Huawei and other Chinese tech companies. Small rural operators are thought to be the hardest hit, as they rely on federal subsidies for network upgrades and expansion and often choose Chinese suppliers for the relatively lower cost.
The letter says the NDAA rules could lead to a "dramatic reduction" in the number of companies that would be able to supply the government, and would disproportionately affect US companies in rural areas that rely on federal grants. The letter asks for the restrictions on contractors and on federal loan and grant recipients to take effect four years from the law’s passage, instead of the current two years, to give affected companies time to respond and give feedback.
Representatives of Pence and the members of Congress to whom the letter was addressed, including House Speaker Nancy Pelosi, didn’t immediately respond to requests for comment.
The requested delay would not stop or affect the timing of the separate Commerce Department rule that added Huawei to its Entity List, a blacklist that bans the company from buying parts and equipment from American firms without US government approval.
