Court Restores Digital Equity Grants, Removes Race-Based Criteria
A court reinstated Digital Equity Act grants but struck down race-based provisions.
Why it matters: This ruling shapes how federal broadband grants target underserved communities, impacting legal compliance in civil rights and telecom regulation. It alters the framework for deploying federal funds to address digital divides.
- On July 15, 2026, Judge John D. Bates struck down race-based grant criteria in the Digital Equity Act as unconstitutional but upheld the remaining grant program.
- The Digital Equity Act allocates $2.75 billion to improve broadband access and digital skills in underserved U.S. communities.
- The Trump administration canceled the Competitive Grant Program in May 2025, citing legal objections to racial criteria.
- The National Digital Inclusion Alliance sued to reinstate the program, resulting in the partial reversal by the court.
The Digital Equity Act, part of the 2021 Bipartisan Infrastructure Law, set aside $2.75 billion to expand broadband access and digital skills training for underserved communities nationwide. The grant program included provisions that allowed consideration of race to address systemic digital disparities.
In May 2025, the Trump administration canceled the Competitive Grant Program. The administration asserted that the racial preference components amounted to unlawful discrimination, leading to the program's termination. This move halted a significant federal effort to close digital divides.
The National Digital Inclusion Alliance (NDIA) filed a lawsuit in October 2025 challenging this cancellation. On July 15, 2026, U.S. District Judge John D. Bates ruled in favor of NDIA on most counts. He declared the race-based grant criteria unconstitutional but severed this provision, allowing the rest of the grant program to continue and funding to be disbursed.
NDIA's statement emphasized the ruling as a step forward in restoring funding for digital equity initiatives nationwide.
Maria McCauley, President of the American Library Association, said the ruling "offers communities a renewed opportunity for investment in digital access through libraries and local organizations." Conversely, Marc H. Morial, President and CEO of the National Urban League, criticized the decision for removing vital tools to address racial inequality, noting it "limits the government’s ability to confront systemic disparities." Christopher Mitchell, Director at the Institute for Local Self-Reliance, called it "a partial victory" crediting NDIA’s legal efforts.
The ruling will reshape how federal agencies implement broadband grant programs going forward. The National Telecommunications and Information Administration has yet to provide guidance on updated grant criteria absent race-based considerations. This raises new questions about addressing digital inequity and redlining through federal funding.
The court opinion can be viewed here, offering critical insight into the constitutional analysis applied to race-conscious grant programs.
By the numbers:
- $2.75 billion — total funds allocated by the Digital Equity Act for broadband and digital skills programs
- May 2025 — date Trump administration canceled the Competitive Grant Program
- July 15, 2026 — date Judge Bates issued the ruling restoring grants minus race-based provisions
Yes, but: The ruling restores much-needed broadband funding but removes explicit racial targeting tools, which critics argue weakens efforts to close racial digital divides.
What's next: Federal agencies will need to update grant guidelines without racial criteria; stakeholders await new regulations from the National Telecommunications and Information Administration.