Feds push out dollars for states’ digital equity efforts

Amid concerns about the future of federal funding to help states build out broadband internet and close the digital divide under President-elect Donald Trump, one agency is sending grant money out the door fast.

The National Telecommunications and Information Administration in early December started to award grants under the first round of its $1.44 billion State Digital Equity Capacity Grant Program, which was created under the 2021 bipartisan infrastructure law. That program provides cash for states to promote affordable technology and service, as well as raising digital literacy, awareness of privacy and cybersecurity and technical support. It’s part of the Digital Equity Act, which provides $2.75 billion for three grant programs.

And in the waning days of the Biden administration, money has been flying out of NTIA’s door to help states bolster their digital equity in this first tranche, which totals more than $800 million.  Every state has been required to submit a digital equity plan that they can then use to help drive their funding requests.

Florida, Iowa, Montana, Guam and the Northern Mariana Islands received more than $61 million between them at the start of December, then Washington, D.C., Maine, Rhode Island, Hawaii and Massachusetts received awards of their own the following week. Another big award worth more than $85 million for Kansas, Mississippi, North Carolina, Pennsylvania and Virginia soon followed, then awards for Kentucky and New Jersey last week. State leaders are thrilled.

“Now, with access to these Federal funds, Maine can begin turning that plan into action, ensuring that all Maine people can take full advantage of the internet and all the opportunities it provides to participate in our global society and economy,” Maine Gov. Janet Mills said in a statement.

“This funding from the NTIA is a significant capstone in our efforts to improve infrastructure and ensure everyone has the necessary tools to get connected,” Hawaii Lt. Gov. Sylvia Luke said in a statement. “Together with our county and non-profit partners, we are aiming to expand our offering of digital literacy and cyber security training, provide devices, and bolster tele-health so that all residents, regardless of their background or circumstances, have access to the opportunities they need to safely thrive in the digital age.”

States have big plans for the money, too. Like many states, Florida intends to implement its own subgrant program known as ConnectedFlorida to help fund programs that support workforce development, digital literacy, device ownership and other digital adoption activities. Iowa will expand its libraries’ Wi-Fi hotspot loan program, while Maine will help fund a statewide device donation and refurbishment campaign and several awardees will expand telehealth access.

In multiple statements, Commerce Secretary Gina Raimondo said the department will work with state-level awardees to ensure residents “have the tools and skills to take advantage of quality, affordable high-speed Internet — whether it’s for work, education, health care, or any other essential service.”

Not everyone is happy about the grant program, however. In a late November letter to NTIA Administrator Alan Davidson, Sen. Ted Cruz, R-Texas, said considering the race of programs’ beneficiaries violates the Fifth Amendment to the Constitution and could “cause real harm.”

Cruz, who is set to take over as chair of the Senate Commerce Committee, assailed the grant program’s Notice of Funding Opportunity for specifying that applicants must use the funding to serve members of “Covered Populations," which is defined to include “individuals who are members of a racial or ethnic minority group.”

“The NOFO comes up short on all fronts,” Cruz wrote, noting that there is “no end date to the discrimination,” that it leaves minority undefined and so makes it “impossible to determine whether it is underinclusive,” and it offers “no way to measure when NTIA will have achieved” digital equity. He also noted that similar grant programs that use race to determine awardees have been struck down.

“If the NTIA proceeds, it will only invite another successful lawsuit,” Cruz wrote.

Separately, Cruz warned NTIA of “substantial changes” ahead for the $42 billion Broadband Equity, Access and Deployment program, which also was funded under the 2021 infrastructure law. The Texan accused the agency of putting in place “unlawful and burdensome bureaucratic obstacles,” and said it has “wasted” millions of dollars and worked to “impose extraneous mandates” on states.

Outwardly, NTIA appears unbowed on that too. Earlier this month, Will Arbuckle, a senior policy advisor at NTIA, said states, internet service providers and construction firms can take several steps now to prepare themselves. That includes communicating with partners like employers, state agencies and workforce solution providers; assessing their workforce needs; and identifying potential ways to partner and fund their efforts.

“Collaboration across federal, state, and municipal governments, along with the telecom and construction industries, and other broadband stakeholders will be crucial,” Arbuckle said.