NTIA terminates Digital Equity Act grants

Key Takeaways

On May 9, the National Telecommunications and Information Administration (NTIA) sent termination of funding letters to recipients of grants authorized under the Digital Equity Act, which was passed in 2021 as a component of the Bipartisan Infrastructure Law (BIL). The Digital Equity Act totals $2.75 billion in federal funding and includes the following grant programs:  

• The State Digital Equity Capacity Grant Program ($1.44 billion)
• The State Digital Equity Planning Grant Program ($60 million)
• The Digital Equity Competitive Grant Program ($1.25 billion).  

Counties were eligible for direct funding through the Digital Equity Competitive Grant Program, with several counties receiving award notifications in January of 2025 before the announced termination of the program, and counties have also been indirect beneficiaries of state digital equity plans developed under the State Digital Equity Capacity Grant Program and the State Digital Equity Planning Grant Program.  

What is digital equity? 

As defined in the Digital Equity Act, digital equity refers to the “condition in which individuals and communities have the information technology capacity that is needed for full participation in the society and economy of the United States”. The work of digital equity can include a variety of measures intended to bring information technology accessibility to individuals who may not have immediate access to connectivity.  

Strategies to implement digital equity can include addressing a lack of infrastructure in rural or urban communities, making affordable connectivity devices more accessible to individuals in need due to income or background, and establishing digital literacy and training resources of existing and emerging consumer technologies. Oftentimes, digital equity strategies and plans include participation by a consortium of state and local government, non-profits, educational institutions, libraries, and other community organizations.  

What is the impact on counties? 

The termination of the Digital Equity Act grant programs will have an adverse impact on county plans to achieve increased broadband adoption across communities. In many states, counties have served as key stakeholders in assisting their state with the development of digital equity action plans that were funded under the Digital Equity Act. Counties may have also been direct recipients of state grant opportunities to execute the strategies and findings of a particular state’s digital equity plan, as permitted by the Bipartisan Infrastructure Law.  

Finally, counties may have also been applicants and prospective recipients of direct funding under the Digital Equity Competitive Grant Program, which offered a direct grant program for counties to implement digital equity strategies at the local level to meet need and increase adoption to high-speed broadband connectivity across communities.  

NACo supports the notion that all levels of government should work cooperatively with the private sector, nonprofits, and academia to develop robust awareness, adoption, and use programs for broadband. The Digital Equity Act is a meaningful and significant advancement in that work.  

Counties are currently evaluating local impacts and advocating for a restoration of funding while identifying alternative funding sources to maintain existing digital equity programs and strategies.