NTIA Announces a Fraction of Digital Equity Grant Awards

WASHINGTON, Jan. 7, 2025 – The National Telecommunications and Information Administration announced Monday that it planned to award $254 million in digital inclusion grant funding, although the announcements were only for a small fraction of the program's funding.

Under the Digital Equity Competitive Grant Program, a part of the bipartisan infrastructure law of November 2021, up to $1.25 billion was allocated to the program.

The awards are being “announced on a rolling basis,” said an NTIA spokesperson, adding that the Notice of Funding Availability commits the department to awarding $900 million for the program.

The largest of the 24 awards announced Monday by the U.S. Commerce Department agency was to the National Digital Inclusion Alliance, for $25.7 million. The average amount awarded was $10.6 million, and all but two of the awards ranged from $7 million to $13 million. 

The smallest award was to Montezuma County Mancos School District in Colorado, for $1.3 million.

“Right now, millions of Americans want to use the Internet, but either don’t know how or can’t afford the devices to do so,” Commerce Secretary Gina Raimondo said in a statement. “The Commerce Department is working to get these Americans the skills and technology they need to take full advantage of their Internet connection so they can better their lives and grow the economy for everyone.”

But the $254 million planned for awards was not only just a small fraction of the $1.25 billion allocated under the competitive grant program: It was an even smaller fraction of the $6.5 billion in funding requested from more than 700 applications received by NTIA in September.

The notice said that NTIA “expects to make awards… within a range of $5,000,000 and $12,000,000.” 

“Everyone in America should have a fair shot at participating in the modern digital economy,” said Assistant Secretary of Commerce for Communications and Information and NTIA Administrator Alan Davidson. “NTIA’s digital inclusion grant programs will change that through funding for devices, skills training, and more—so that seniors, veterans and others can fully participate online.” 

Part of the larger $2.75 billion Digital Equity Act, the grant program was created to support digital skills training, workforce development, low-cost equipment access, and other projects that aim to narrow the technology gap.

But the competitive grant program has recently fallen under attack from Republicans, including now-Senate Commerce Committee Chairman Ted Cruz, R-Texas, who labeled it part of a “woke spending spree.” 

Republicans have already signaled they may push for revisions to the much larger $42.5 billion Broadband Equity, Access, and Deployment Program, even though implementation is just around the corner. 

Awards will be issued following budget review and processing, the agency said.