The Digital Equity Act: What It Is and Why We Need It

On Friday, May 9, 2025, the Trump Administration began notifying states that their Digital Equity Act Capacity Grant funds were terminated. The day prior, President Donald Trump shared via Truth Social that he and U.S. Commerce Secretary Howard Lutnick are determined to bring an end to the Digital Equity Act and its “unconstitutional” and “illegal” programs.

In 2021, Congress included the Digital Equity Act in the bipartisan Infrastructure Investment and Jobs Act to give U.S. states, territories, and Tribal entities the tools they need to help people get online and use the internet. These governments have completed their plans and, until May 9th, were preparing to implement programs to improve digital literacy, access to affordable internet-connected devices, provide technical support, and increase awareness of privacy and cybersecurity.

The digital divide is multifaceted. Some 24 million people in the U.S. lack high-speed internet service in their homes, according to the Federal Communications Commission. Many households can’t afford service when it is available. And many millions have not adopted broadband because they lack the skills and/or devices to do so. The Digital Equity Act primarily aims to address these issues around broadband adoption.

What Is the Digital Equity Act?

The $2.75 billion Digital Equity Act is comprised of three grant programs administered by the Commerce Department’s National Telecommunications and Information Administration (NTIA):

1. The $60 million Digital Equity Planning Grant Program,
2. The $1.44 billion Digital Equity Capacity Grant Program, and
3. The $1.25 billion Digital Equity Competitive Grant Program.

The Planning and Capacity Programs are related. Their funds, which were allocated by a formula created by Congress, flow to state governments and were meant to be used to plan and implement programs that promote internet adoption among what Congress calls “covered populations.” The Competitive program, by contrast, was awarded grants through a competitive application process open primarily to non-state entities, like non-profits. By May 9th, the day President Trump terminated these programs:

• The Planning Program had been completed and states’ digital equity plans were approved by NTIA;
• NTIA had also approved states’ strategies to implement their digital equity plans, setting them up to receive Capacity Program awards; and
• NTIA had approved 66 Competitive Program award and was planning additional funding rounds.

Here is more information on the Digital Equity Act’s three programs and examples of the projects they would have funded.

Who is the Digital Equity Act Supposed to Help?

Congress identified eight “covered populations” to focus broadband adoption and digital skills programs on. Historically, many of these groups have had lower rates of technology adoption.

1. For low-income individuals (annual incomes of  $30,000 or less), roughly a quarter say they don’t own a smartphone, and more than four in ten do not have home broadband services or a desktop or laptop computer. By comparison, each of these technologies is nearly ubiquitous among adults in households earning $100,000 or more a year.
2. People 65 and over face numerous barriers to robust digital access, adoption, and use; nearly 22 million American seniors lacked wireline broadband access at home in 2020.
3. Incarcerated individuals are generally cut off from communications and information services and cannot develop the digital skills needed for reentry into society and the workforce.
4. Veterans lag in internet access when compared with non-veterans. In 2019, the Federal Communications Commission found that 2.2 million Veteran households lacked access to fixed broadband, mobile broadband, or both.
5. Some 62 percent of adults with a disability say they own a desktop or laptop computer, compared with 81 percent of those without a disability.
6. Individuals with a language barrier in the U.S. often struggle to obtain equitable access to the internet due to a lack of resources for non-English speakers. This includes individuals who are English learners and have low levels of literacy.
7. Individuals who are members of a racial or ethnic minority group can face compounding systemic inequities that extend to internet access and adoption, including digital redlining, which disproportionately affects people of color, low-income communities, and rural populations. Further, only 69 percent of Black Americans and 67 percent of Hispanic Americans have desktop or laptop computers, compared with 80 percent of White Americans.
8. While individuals who primarily reside in rural areas have seen a 9 percentage point rise in home broadband adoption since 2016––when about six-in-ten (63%) reported having a high-speed internet connection at home––rural residents are still less likely than those living in suburban areas to report having home broadband.

Over 80 percent of Americans fall within one or more of the covered populations and these populations have a great deal of overlap. In most states, rural populations are the largest covered population.

Why Do We Need the Digital Equity Act?

The costs of the digital divide for covered populations, and for all U.S. residents, are well-documented.

Digital Equity is Needed to Improve Educational Outcomes

A study by the Quello Center at Michigan State University found that a deficit in digital skills compounds many of the inequalities in access to education. It also contributes to students performing lower on standardized tests such as the SAT and being less interested in careers related to science, technology, engineering, and math.

Digital Equity is Needed to Improve Healthcare

The Veterans Health Administration (VHA) found that virtual mental health appointments can be just as effective as in-person visits. Rural U.S. veterans who received a video-enabled tablet increased their use of mental health care, increased psychotherapy visits, and reduced suicide behavior and emergency room visits.

Digital Equity is Needed For Workforce Development

The National Skills Coalition (NSC) and the Federal Reserve Bank of Atlanta examined how digital skills factor into the U.S. labor market, finding that 92 percent of the jobs researchers analyzed require digital skills. Despite this increasing demand, NSC also found that one-third of workers don’t have the foundational digital skills necessary to enter and thrive in today’s jobs.

Ending the Digital Equity Act

In the Digital Equity Act, Congress acted on its belief that “achieving digital equity is a matter of social and economic justice and is worth pursuing.”

Denying states access to Digital Equity Act funds is illegal and means the digital divide will persist in the U.S., weakening our economic competitiveness and the distribution of essential public services, including health care and education.

Although affordable, reliable, high-speed broadband is essential to full participation in modern life, the digital divide still disproportionately holds back communities of color, lower-income areas, and rural areas. Being on the wrong side of the digital divide:

• carries a high societal and economic cost;
• materially harms the opportunity of individuals with respect to the economic success, educational achievement, positive health outcomes, social inclusion, and civic engagement of that individual; and
• exacerbates existing wealth and income gaps, especially those experienced by covered populations.

The benefits of broadband should be enjoyed by all of us.

States and Stakeholders Respond

State broadband offices, Members of Congress, and public advocacy organizations all responded to the termination of the Digital Equity Act on May 9.

On May 14, Senator Patty Murray (D-WA), the primary author of the Digital Equity Act, said, “A President cannot overrule a law—period. And certainly not through a tweet. But that hasn’t stopped this administration from illegally blocking the funding from the Digital Equity Act to all 50 states.”

State broadband offices around the country are working on notifying residents of the termination of funding and its impact on digital equity programs.

 Aaron Wheeler, Director of the Washington State Broadband Office, spoke about what the termination of Digital Equity Act funds would cost Washington residents.

“Canceling contracts related to Washington State’s $15.9 million Digital Equity Capacity Grant will severely hinder our efforts to close the digital divide,” said Wheeler. “Cutting this vital program will expose millions of Washington residents to cyber risks, weaken the economic framework of Washington’s communities, and set back educational and workforce opportunities.

The California Department of Technology shared the formal notification it received from the Department of Commerce on May 9, notifying the state that NTIA will cease to disperse Capacity Grant Program funds, of which California was slated to receive $70 million.

The reasoning, according to the letter, is that the Trump Administration determined “the Digital Equity Capacity Program is unconstitutional and grants issued pursuant to it were created with, and administered using, impermissible and unconstitutional racial preferences.”

The Wisconsin Broadband Office reiterated that Governor Tony Evers (D-WI) and the Public Service Commission remain committed to the Digital Equity Capacity Grant Program’s objectives and that the state is working to understand the impacts that termination of the program will have on statewide internet adoption and digital skills.

In Idaho, the Idaho Commission for Libraries reported that over 80 percent of Idaho’s award was slated for subgrants supporting rural Idahoans, including older adults and veterans.

The Maine Connectivity Authority (MCA) was “deeply disappointed” by the termination of funds by NTIA, and the MCA is exploring Maine’s options to respond to the legality of the grant termination.

Digital Equity Act Resources

[Editor’s note: Information about Digital Equity Act programs previously available online at InternetForAll.gov and on the NTIA website has been removed.]