US — The Trump administration will reinstate the Digital Equity Competitive Grant Program to comply with a court ruling. The US government plans to start accepting applications for the program in December.

The administration confirmed in a joint status report that it will reinstate the program without using race and ethnicity as criteria for awarding funds. This decision follows a legal challenge that resulted in a judge ruling that the government cannot allocate Digital Equity Act grant money based on the race or ethnicity of beneficiaries.

Judge John Bates issued the ruling in the US District Court for the District of Columbia, where the National Digital Inclusion Alliance sued the Trump administration and federal government officials. The lawsuit specifically targeted the Digital Equity Competitive Grant Program, which accounts for $1.25 billion of the total authorized by the Digital Equity Act.

In his decision, Judge John Bates ruled that the Digital Equity Act straightforwardly categorizes members of certain races as 'covered' by the Act and targets grant money to programs that benefit those groups. He further ruled that the explicit racial classification in the Digital Equity Act is unconstitutional because it is neither justified by a compelling governmental interest nor narrowly tailored to meet a permissible goal.

Despite finding the racial classification unconstitutional, Judge John Bates ruled that the offending provision is severable from the rest of the statute. As a result of the judge’s ruling, the racial and ethnic minority category will be eliminated from the Digital Equity Competitive Grant Program.

The Digital Equity Act defined eight types of covered populations, including individuals who are members of a racial or ethnic minority group. With the elimination of that category, the remaining covered populations for the Digital Equity Competitive Grant Program include people in low-income households, people who are 60 or older, incarcerated people except those in federal correctional facilities, veterans, people with disabilities, people with language barriers, and people living in rural areas.

The Digital Equity Competitive Grant Program can award grants based on factors such as income, age, and disability. The National Telecommunications and Information Administration is preparing a new Notice of Funding Opportunity for the competitive grant program to facilitate the December application window.

The government told the court in June that it would be willing to administer the Competitive Grant Program applying the statute’s race-neutral criteria. This stance marked a shift from May 2025, when Trump announced that he would end the Digital Equity Act grant programs entirely.

The joint status report did not mention restoring the $1.44 billion program for states. A separate grant program for states and territories accounted for $1.44 billion of the Digital Equity Act funding, distinct from the competitive grants at issue in the lawsuit.

The Digital Equity Act of 2021 provided $2.75 billion for three grant programs aimed at closing gaps in broadband access. Congress approved the Digital Equity Act at the same time as the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program.

Prior to the Trump administration's initial termination of the program, the Biden administration had moved to distribute funds. The Biden administration awarded $60 million in planning grants to states in 2022. The Biden administration started taking applications to distribute the remaining funds of the Digital Equity Act in 2024.

In January 2025, the Biden administration selected the National Digital Inclusion Alliance for a $25.7 million grant to provide low- and no-cost devices and assist people in accessing low-cost broadband. The National Digital Inclusion Alliance was in line to obtain $25.7 million in grant money before the Trump administration ended the program.

Why It Matters

The reinstatement of the $1.25 billion Digital Equity Competitive Grant Program ensures funding continues for broadband access, though the elimination of race as a criterion alters eligibility standards. By shifting focus to factors like income, age, and disability, the ruling changes which populations qualify for assistance under the remaining seven categories. This legal adjustment allows the program to proceed while removing the specific racial classifications deemed unconstitutional by the court.