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Trump reinstates broadband grants after court ruling, but race criteria removed

Created at 4 Aug · 9:31 PM1 source↑ Market-relevant
IN SHORT

The Trump administration will reinstate a $1.25 billion broadband grant program following a court ruling, but a judge has declared the race-based allocation criteria unconstitutional. Applications for grants are expected to open in December, focusing on factors like income, age, and disability.

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Key Numbers

$1.25 billionDigital Equity Competitive Grant Program funding
$2.75 billionTotal authorized by Digital Equity Act
$60 millionPlanning grants awarded by Biden administration
$25.7 millionNDIA grant amount before program termination
EightTypes of covered populations in original Act

Who's Involved

Donald Trump
President who announced termination of broadband grants
National Digital Inclusion Alliance (NDIA)
Advocacy group that sued over grant program
Judge John Bates
Ruled the race-based provision of the Act unconstitutional
Angela Siefer
Executive Director of NDIA
National Telecommunications and Information Administration
Preparing new funding opportunity for the grant program
Trump reinstates broadband grants after court ruling, but race criteria removed

↳ Why This Matters

The decision impacts federal efforts to bridge the digital divide, ensuring that broadband access initiatives can proceed while adhering to constitutional requirements regarding racial classifications in government programs.

Key facts

  • The Trump administration will reinstate the Digital Equity Competitive Grant Program.
  • A court ruled that race and ethnicity cannot be used as criteria for awarding broadband grants.
  • The program will still consider factors such as income, age, and disability.
  • Applications for the reinstated grant program are expected to open in December.
  • The Digital Equity Act originally provided $2.75 billion for broadband access initiatives.
  • The NDIA, an advocacy group, sued the administration over the program's termination.

The Trump administration has agreed to reinstate the Digital Equity Competitive Grant Program, a $1.25 billion initiative aimed at closing broadband access gaps, following a court ruling. The administration had previously announced its intention to end the program, citing it as unconstitutional and racist.

A US District Court judge ruled that while the Digital Equity Act itself is not entirely unconstitutional, the provision allowing for the allocation of funds based on race or ethnicity is. Consequently, the government can no longer use race as a criterion for awarding these grants. However, the program can still consider factors such as income, age, and disability.

The National Digital Inclusion Alliance (NDIA), an advocacy group that was set to receive $25.7 million in grant funding before the program's termination, sued the administration. The NDIA has called the revival of the program a "massive win" but expressed disappointment that racial and ethnic minorities can no longer be specifically targeted as a covered population.

The Digital Equity Act, enacted in 2021, originally authorized $2.75 billion for three grant programs. The Biden administration had begun distributing funds, but the Trump administration's decision to end the program led to the lawsuit. The National Telecommunications and Information Administration is now preparing a new Notice of Funding Opportunity, with applications expected to open in December. The NDIA is currently evaluating the proposed timeline and details before deciding whether to reapply for funding.

Frequently asked questions

The Digital Equity Act is a law enacted in 2021 that provides funding for programs aimed at closing gaps in broadband access, particularly for underserved communities.

President Trump claimed the Digital Equity Act was racist and unconstitutional, specifically objecting to the use of race as a criterion for awarding grants.

The court ruled that the race-based allocation criteria were unconstitutional but allowed the program to continue using other factors like income, age, and disability.

The NDIA is currently evaluating the details of the reinstated program and will decide whether to submit a new application.

What Happens Next

01The National Telecommunications and Information Administration will issue a new Notice of Funding Opportunity.
02The NDIA will evaluate the new funding opportunity and decide whether to apply for grants.
03The court may receive further input from the NDIA regarding the proposed timeline for applications.

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Cadence

How It Developed

Congress enacted the Digital Equity Act in 2021, authorizing $2.75 billion for broadband access programs.
The Biden administration began awarding grants in 2022 and accepting applications for the remaining funds in 2024.
In May 2025, Donald Trump announced the termination of the grant programs, deeming the Act unconstitutional.
The National Digital Inclusion Alliance (NDIA) sued the Trump administration over the discontinuation of the Competitive Grant Program.
A US District Court judge ruled that the race-based allocation provision of the Digital Equity Act is unconstitutional.
The Trump administration will reinstate the Digital Equity Competitive Grant Program, excluding race and ethnicity as awarding criteria.
Applications for the reinstated grant program are expected to begin in December.
The NDIA expressed satisfaction with the program's revival but disappointment over the removal of racial and ethnic minority targeting.

Sources

T1
Trump forced to reinstate broadband grants, but court lets US scrap race criteriavar abtest_2166158 = new ABTest(2166158, 'impression');Ars Technica

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