President Trump Terminates Digital Equity Act Programs

President Trump Terminates Digital Equity Act Programs

President Trump has announced that his administration is immediately ending Digital Equity Act grant programs administered by the National Telecommunications and Information Administration (NTIA). In the White House’s announcement, the termination of what was characterized as the “racist and discriminatory Biden-era ‘Digital Equity Act'” was listed among the administration’s recent accomplishments, with the President citing the program’s inclusion of race-based criteria as making it unconstitutional. This decision has significant implications for both providers and communities that were counting on this funding for digital inclusion and adoption efforts.

Program Status and Impact

The Digital Equity Act established a $2.75 billion federal program that was designed to be administered at the state level, with states developing and implementing customized digital equity strategies for their communities. Many states had already completed their required planning phases and were poised to begin implementation when the termination was announced. NTIA has begun issuing termination letters to recipients, including numerous states, counties, organizations, and telecommunications companies who had already received funding award notifications as recently as January 2025. This sudden halt means many approved digital inclusion projects cannot proceed as planned, leaving state broadband offices with completed strategic plans but without the resources to execute them. The real-world impact is already evident in states like Maine, which now faces the loss of $35 million that was allocated for state-coordinated initiatives to expand internet access, provide affordable devices, and deliver digital literacy training to underserved communities.

The President’s authority to unilaterally terminate congressionally approved funding has been questioned by several organizations and lawmakers. Legal challenges are likely to follow, as the administration has not yet detailed exactly how it will implement the cancellation, including whether it will seek congressional approval for a budget rescission. While the administration has focused on racial components of the Digital Equity Act as the rationale for termination, the Act’s “covered populations” includes a much broader range of beneficiaries who will now lose access to these resources. These include veterans, older adults, individuals with disabilities, rural communities, and low-income households, many of whom live in areas served by providers that would have partnered in these initiatives

Next Steps

JSI continues to monitor State Broadband Offices’ responses to the announcement and clarification on their respective programs. Given the uncertainty surrounding this funding termination and the potential for legal challenges, providers should confirm whether any of their ongoing or planned digital inclusion initiatives will be affected by this decision. If your company has incorporated Digital Equity Act funding into your deployment projects or outreach programs, a thorough review of these initiatives is warranted to determine if alternative funding sources need to be identified.

Our policy experts believe there are ways to restructure these programs to address the administration’s constitutional concerns while preserving the critical digital inclusion components that benefit rural communities.

JSI encourages providers to contact us if you are interested in communicating with government officials about the importance of these programs for your communities. We can help develop focused advocacy strategies that emphasize how these initiatives support beneficiaries like veterans, seniors, and rural residents who struggle with digital adoption. By sharing specific examples of how your company has used or planned to use these resources to help your service areas bridge the digital divide, you can contribute to a more informed policy discussion.

For assistance with advocacy efforts or to discuss the potential impacts of this decision on your operations, please contact Brett Hallagan.