NTIA: $800M Available in First Round of Digital Equity Capacity Grants

NTIA said Friday it's making more than $800 million in digital equity capacity grant funding available. The capacity grant program is "the largest single investment in digital equity in our nation's history," NTIA Administrator Alan Davidson said. Established under the Digital Equity Act, $1.44 billion was made available for NTIA to support digital equity through the program.

Of the funding, about $760 million is available for the 50 states, the District of Columbia and Puerto Rico, another roughly $45 million for tribal entities, and about $8.4 million for the remaining territories. Funding allocations considered the relative population of a state, the relative size of covered populations in the state, and the "comparative lack of availability and adoption of broadband," a news release said. California was allocated the greatest amount, about $70 million, with Texas getting $55 million.

Final awards will depend on the "number and characteristics of the states that apply," according to the agency's notice of funding opportunity. Grants for tribal entities will depend on "the number of applicants and the size of the proposals submitted." Territories will receive grants through "an equal distribution of the territorial set aside."

Applications from states, D.C. and Puerto Rico are due by May 28, said the NOFO, released Friday. All other territories must submit an application by July 31. Tribal entities may apply from Sept. 25 through Feb. 7. NTIA expects it will begin to issue awards not later than Aug. 28, making additional awards on a rolling basis. Future NOFOs will make as much as an additional $300 million available for FY 2025 and 2026 for "implementation of digital equity plans and digital inclusion efforts." The agency will also launch its $1.25 billion digital equity competitive grant program "30 days after NTIA makes its first capacity grant program award" as required by law.

"Families across America need the tools and skills required to make the most of that Internet connection, and that’s the opportunity we’re announcing today," said Commerce Secretary Gina Raimondo. Davidson told reporters Thursday that "it's not enough to ensure that everyone in America has a connection running past their home or business." A connection "only gets you so far" in addressing digital equity, Davidson said.

"This first tranche of programmatic grant funds will enable states and territories and native entities to empower individuals and communities with the tools and skills they need to benefit from access to high speed internet service," Davidson said, and NTIA is "very excited to see how states will go and implement their digital equity plans."

Noting that digital equity is "a matter of social and economic justice," the NOFO "seeks to enable any entity that is awarded a grant under this program to better understand, measure, and address systemic barriers to digital equity and, in collaboration with the communities most impacted, co-create the conditions necessary for long-lasting and meaningful change to ensure a sustainable future."