UPDATE, May 16: Following Monday’s announcement of the federal government pausing the funding of the Digital Equity Act, more states are issuing statements about the change.
Yesterday, the Arizona Commerce Authority (ACA) issued a statement saying, “The ACA will not be proceeding with the program at this time and is suspending the Digital Equity General Capacity Subgrant process.
“The ACA and State Broadband Office remain committed to connecting all Arizona households and communities to high-speed internet through numerous expansion programs. These include the Arizona Broadband Development Grant (ABDG) Program, the Arizona Broadband Statewide Middle-Mile Strategic Plan, the Broadband Equity, Access and Deployment (BEAD) Program, and more.”
The Vermont Community Broadband Board (VCBB) issued a more strongly worded statement in an email yesterday.
In the statement, VCBB Executive Director Christine Hallquist said, “Vermont’s [digital equity] 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.”
The Vermont statement also said the state’s digital equity program has the potential to impact 95% of the state’s population.
Original Story Follows: May 13
States are receiving notifications that President Donald Trump is pulling the plug on the Digital Equity Act, a $2.75 billion program that is part of the $1 trillion bipartisan infrastructure law, according to a CNET report.
According to CNET, the Digital Equity Act is being halted after President Trump called it “racist” and “unconstitutional” on social media.
An email from the Indiana Broadband Office yesterday afternoon stated, “The Indiana Broadband Office has been notified by our federal partners to suspend the Digital Opportunity Grant program. Due to this, we are suspending the application period for the Digital Opportunity Grant until further notice.”
The Maine Connectivity Authority (MCA), the agency leading the statewide expansion of broadband and digital opportunity in the Pine Tree State, was one of the entities receiving notice that — as of Friday, May 9 — the National Telecommunications and Information Administration (NTIA) had terminated three grants for $35 million for the state.
This notification was part of a nationwide termination of Digital Equity Act grants across all states and territories and 65 other organizations.
MCA said that the elimination of this funding will disproportionately impact older, rural residents, small businesses, veterans, low-income households, and students.
“This announcement is deeply disappointing, and MCA is exploring its options to respond to grant termination,” said MCA President Andrew Butcher in a prepared statement. “Our team is evaluating how to best proceed with critical programming and investments currently underway through our statewide digital equity strategy.
Other voices within the broadband industry were quick to respond. Angela Siefer, Executive Director of the National Digital Inclusion Alliance (NDIA), said, “This decision has no policy rationale and makes no economic sense. Cutting this funding will deepen the divide and force greater costs down the road. We call on leaders in Congress and across the country to reject this shortsighted move. Digital equity is not partisan. It is essential.”
Nationally, the Digital Equity Act included $60 million for state digital equity planning grants, $1.44 billion for a State Digital Equity Capacity Grant Program, and $1.25 billion for a Digital Equity Competitive Grant Program.Angela Thi Bennett, NTIA’s first director of digital equity, told Telecompetitor in a 2023 interview, “We’re not just focused on the technical aspects of building out the network but ensuring that people are at the epicenter.”
