Federal government cancels Vermont’s Digital Equity Grant

Vermont Will Lose Out on More than $5 Million to Ensure Everyone Can Use the Internet 

Vermont Business Magazine Vermont Community Broadband Board (VCBB) has been notified that Vermont’s $5.3 million Digital Equity Capacity Grant has been canceled as of May 9, 2025. The grant was being used to implement Vermont’s Digital Empowerment (DE) Program. 

“Vermont’s DE Program was going to improve the lives of Vermonters who can’t access the internet—whether because they can’t afford devices or don’t have the skills to take advantage of all the opportunities that come with being connected. This is out of reach for many people in the state. Taking this funding away now will severely limit our work and will mean many Vermonters will be left behind, unfortunately the most vulnerable,” said VCBB Executive Director Christine Hallquist. 

The DE Program potentially impacts 95% of Vermonters. The Digital Equity Act, passed by a bipartisan majority of Congress, aims to help people who have barriers to accessing the internet, including people living in rural areas, people who are 60+, people with a low-income, veterans, people with disabilities, those with language barriers, members of racial and ethnic minorities, and incarcerated people. 

Vermont’s program includes devices for people who can’t afford to buy them, digital skills training to teach people how to get online effectively and safely, and workforce training to prepare Vermonters for digital and/or remote work. The program was also going to award subgrants to organizations across the state working to bridge the digital divide. 

VCBB received this letter from National Institute of Standards and Technology. According to the Department of Commerce and the National Telecommunications and Information Administration (NTIA), the termination stems from a federal determination that the Digital Equity Capacity Program, established under 47 U.S.C. § 1723, is unconstitutional. As provided in the termination letter, federal officials have declared that the program and its grants “were created with, and administered using, impermissible and unconstitutional racial preferences.” As of Friday, May 9th, the Federal Government has terminated these grants for all states and territories that received Capacity Grants. 

Vermont has made unprecedented investment in building out broadband across the state. To maximize the return on that investment, studies have shown that it should be matched with localized, community-driven solutions focused on affordability, digital literacy, and device access, allowing more people to use the infrastructure that has been built, which bolsters the sustainability of rural broadband. 

“The broadband build-out, and the wrap-around digital workforce development efforts that were to be funded via this grant, have the potential to revolutionize healthcare, precision agriculture, remote learning, energy, public safety, and infrastructure monitoring. Without targeted investments in digital access and literacy, many Vermonters will be unable to access the resources necessary for job training, career advancement, and economic mobility, ultimately deepening existing disparities and limiting opportunities for economic growth,” said VCBB Digital Equity Officer Britaney Watson. 

According to a Center on Rural Innovation study, rural counties with fiber broadband adoption rates of over 80% have significant advantages over those with low usage including: 213% higher business growth, as well as higher self-employment growth, GDP growth, and per capita income growth.  

“Telehealth has increased access to high-quality medical care in Vermont. Access to broadband, the devices necessary to access telehealth, and the digital skills required to effectively use the technology are essential in addressing the unique health needs of the 93% of Vermonters who are considered rural, as well as the 28% who are considered aging. Those numbers are well above the national averages,“ said Roz King, MSN, RN, CNL, Chief, Division of Research, Emergency Medicine at University of Vermont Health Network. “The cancellation of the Digital Equity Capacity Grant funding will limit access to quality care for the Vermonters who need it most and stands to contribute to worse health outcomes for our patients.” 

“Every day, Vermont librarians witness the urgent need for funding and support to bridge the digital divide. True digital equity means more than just access to quality internet—it requires the equipment, education, and support to use it effectively. Losing the Digital Equity Program would have far-reaching impacts across our state, affecting job opportunities, educational advancement, access to healthcare, and, most importantly, the ability to engage in our government—a fundamental pillar of a thriving democracy,” said Vermont Library Association President Mary Danko. 

The VCBB is committed to continuing DE efforts and working closely with the Vermont Attorney General’s Office and Vermont’s Congressional Delegation to determine the next legal, political, and programmatic steps. You can read Vermont’s DE Plan and learn more about the DE Program at our website.

5.15.2025. Montpelier, Vermont —Vermont Community Broadband Board 

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