NTIA Announces Open Application Period for the Digital Equity Competitive Grant Program

Key Takeaways

On June 24, the National Telecommunications and Information Administration (NTIA) announced the release of a Notice of Funding Opportunity (NOFO) for the Digital Equity Competitive Grant Program, which will provide $1 billion in competitive funding for digital inclusion activities intended to help bridge the digital divide for vulnerable populations. The Digital Equity Competitive Grant Program is funded through the Bipartisan Infrastructure Law (BIL), and counties are eligible to apply for funding. Applications to the Digital Equity Competitive Grant Program are due by September 23, 2024. 

What is digital equity? Why is there federal funding for this?

The term “digital equity” is defined in BIL as 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 need for digital equity funding is highlighted by the ongoing persistence of the digital divide in the U.S., which highlights how the digital lives of lower income Americans differs substantially from the digital lives of higher income Americans. 

Several studies on the digital divide have shown that communities with a lower socio-economic status are less likely to have affordable and accessible high-speed broadband in their homes. As a result of this lack of access, communities may rely solely on a smartphone to access the internet, which can lead to more barriers in applying for a job, participating in remote learning, accessing government resources or receiving care through telehealth services. 

The need for digital equity funding is exacerbated by the end of the federal Affordable Connectivity Program (ACP), which provided a monthly benefit to eligible households to be able to afford a high-speed internet subscription. At its peak, the program served almost 23 million households on the basis of their income, participation in federal benefits programs or existing participation in other universal service programs such as the Lifeline program. 

What are the details of the grant program? 

The goal of the Digital Equity Competitive Grant Program is to fund programs that ensure that communities have the access and skills to fully participate in today’s digital world regardless of their background or circumstances. Counties are eligible to apply for funding on a competitive basis, and individual awards for the program are expected to range from $5 million to $12 million per awardee. The NTIA expects to make 150 to 200 awards through the grant program. 

Eligible projects can include: 

• The development and implementation of digital inclusion plans
• Facilitate the adoption of broadband by the Covered Populations in order to provide educational and employment opportunities
• Implement training programs for the Covered Populations that cover basic, advanced, and applied skills
• Implement workforce development programs
• Make available equipment, instrumentation, networking capability and digital network technology for broadband services to Covered Populations at low or no cost
• Construct, upgrade, expand, or operate new or existing public access computing centers for Covered Populations through community anchor institutions
• Any other project or activity the Assistant Secretary finds to be consistent with the purposes of the Program. 

The federal cost-share for the program is 90 percent, and waivers of the non-federal cost-share requirements are permissible, although additional consideration will be granted to entities who exceed the minimum non-federal cost-share. Grantees may also use not more than 10 percent of the grant amount to measure and evaluate the activities supported with the grant amounts.

What are the next steps?

The NTIA will host an informational webinar for the grant opportunity in the coming weeks, and NACo will provide additional resources and support for counties interested in applying for grant funding opportunities.