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Rural Americans Wait After Judge Delivers Mixed Ruling on Digital Equity Dollars

Two text excerpts are collaged on top of a rural landscape. The top one reads, "On May 8, 2025, President Trump announced that, after speaking with Secretary of Commerce Howard Lutnick, the two agreed that the DEA was unconstitutional due to its racial preferences." The bottom one reads, "the President lacks the power to cancel laws passed by Congress based on his bald disagreement with Congress's policy determinations."
(吃瓜不打烊 illustration; Getty Images; court documents)

A federal judge in July gave digital equity advocates a partial victory against President Donald Trump, stopping his attempt to unilaterally kill a multibillion-dollar grant program Congress created.

But U.S. District Judge John D. Bates, in a , also agreed with the administration that it was unconstitutional for the government to use race or ethnicity as the basis to award money under a program created to expand internet skills and access.

鈥淚t was definitely disappointing,鈥 said Angela Siefer, executive director of the National Digital Inclusion Alliance, a nonprofit that filed suit last year after not receiving a award meant to bolster digital and internet skills nationwide. 鈥淲ith this administration it鈥檚 really worrisome.鈥

Congress passed the $2.75 billion Digital Equity Act in 2021 as the skill development component of a multilayered 鈥溾 initiative under President Joe Biden鈥檚 signature infrastructure law, which included a bigger pot of money for expanding internet infrastructure.

A few months into his second term, Trump directly attacked the Digital Equity Act on social media, pledging 鈥溾 and calling the program 鈥渋llegal.鈥 The language echoed two Trump executive orders characterizing diversity, equity, and inclusion programs .

The National Telecommunications and Information Administration, which oversees implementation of the law, responded by Digital Equity Act grant programs, leaving states and organizations like the National Digital Inclusion Alliance in limbo.

Joe Burgei (left) helps Shaunta Harris Jr. with an online digital literacy course at a soup kitchen and homeless shelter in Defiance, Ohio. Burgei is a grant-funded digital navigator for the Northwestern Ohio Community Action Commission, which operates the shelter. (Northwestern Ohio Community Action Commission)

In response to Bates鈥 decision, federal attorneys said the government would reinstate the NDIA-related competitive grant program without racial classification. The government aims to release a new grant application in December, according to a filed in the case.

The NDIA now must reapply for the grant award, which was slated to be disbursed among more than a dozen organizations and tribes, including the Cherokee Nation in Oklahoma, El Centro Hispano in Arkansas, Portland Community College in Oregon, and Community Service Programs of West Alabama. The grants are meant to go toward digital navigator programs, in which community workers teach technology and internet skills, according to the NDIA.

In western Ohio, Jamie Huber said her organization was a subrecipient of the NDIA grant funds. Huber, director of community services at the Northwestern Ohio Community Action Commission, said that without the funding, she is left searching for money to continue navigator programs such as one she runs for people who are unemployed, homeless, or both.

鈥淗ow do you find a home? Well, you got to look online. And how do you find a job? You have to look online,鈥 Huber said.

Huber鈥檚 digital navigators also teach internet skills at 10 senior centers in rural counties stretching along the corner of Ohio bordering Michigan and Indiana. They help active older adults learn how to go online to pay bills and get healthcare, so they 鈥渃ontinue having agency over their own life,鈥 Huber said.

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Rural residents live sicker and die younger on average than people in the rest of the country when they live in counties lacking high-speed internet access and healthcare, an analysis by 吃瓜不打烊 found.

At Computer Reach in western Pennsylvania, Executive Director Dave Sevick said his organization has cut staff and programs. He said the nonprofit, which started in 2001, has refurbished more than 24,000 computers, giving them away to families it finds through schools and churches.

鈥淲e鈥檙e aware that affordability is the biggest issue around, and this doesn鈥檛 make it any better for folks,鈥 Sevick said. 鈥淲e鈥檙e helping a little bit by getting a free computer out to people.鈥

The Digital Equity Act the money should benefit, including low-income households, older people, some incarcerated people, rural Americans, veterans, and members of racial or ethnic minority groups.

According to by the Pew Research Center, people in rural communities were less likely to have internet subscriptions compared with their urban and suburban counterparts.

The Pew Research polling that home broadband use among Black and Hispanic adults lagged that of white and Asian adults. While 81% of white adults surveyed said they subscribed to broadband at home, only 71% of Black adults and 68% of Hispanic adults said the same.

A group of people sit at tables facing a speaker at the front of the room in an educational setting.
Megan Hahn teaches class attendees how to use an online health portal at the Swanton Senior Center in Swanton, Ohio. Hahn is a digital navigator with the Northwestern Ohio Community Action Commission. The group鈥檚 work is supported by local, state, and federal grants. (Northwestern Ohio Community Action Commission)

In court, lead federal attorney Patrick Butler argued that Congress failed to prove a compelling government interest when including the racial or ethnic criteria. Congress did not 鈥渋dentify anything close to鈥 a specific instance of discrimination in the broadband industry, Butler said, .

Butler then surprised the court, if the racial or ethnic status could be severed from the law, 鈥渨e would obviously apply the grant program without considering race.鈥

In his opinion severing the race factor, Bates that 鈥渢he President lacks the power to cancel laws passed by Congress based on his bald disagreement with Congress鈥檚 policy determinations.鈥

Sen. Patty Murray (D-Wash.), a primary , said she will be 鈥渨atching very carefully to ensure this administration does what Congress intended.鈥

鈥淚t is indisputable that these challenges are particularly pronounced in low income, rural, and Tribal communities 鈥 and there鈥檚 a reason Democrats and Republicans across the country support this program so strongly,鈥 Murray said in a statement to 吃瓜不打烊. 

Sen. Ted Cruz (R-Texas) Biden鈥檚 infrastructure bill in 2021 and to the National Telecommunications and Information Administration in late 2024 asking the agency to pause the $1.25 billion competitive grants program, arguing the use of racial classifications 鈥渄oes not serve a compelling governmental interest.鈥 Cruz did not respond to requests for comment.

Arielle Roth, administrator of the agency, previously worked as the telecommunications policy director for the Senate Commerce, Science, and Transportation Committee鈥檚 majority staff under Cruz. She was to lead the agency.

Two men sit side by side at a table. The man on the viewer's right smiles in the direction of the photographer.
Burgei gives Paul Helbling (right) tips for using his smartphone during a session at the Henry County Senior Center in Napoleon, Ohio. Burgei鈥檚 job as a digital navigator has been supported by local, state, and federal grants. (Northwestern Ohio Community Action Commission)

In June, during a House committee hearing, Roth had tense exchanges with Democrats who took issue with changes to the Biden-era infrastructure law鈥檚 internet deployment program, which now allows more satellite services rather than prioritizing fiber-optic cable lines.

Lawmakers also asked about the Digital Equity Act鈥檚 grant programs.

鈥淐ommunities across the country deserve a clear answer and a path forward,鈥 Rep. Nanette Barrag谩n (D-Calif.) said during the hearing. While the National Digital Inclusion Alliance鈥檚 lawsuit does not include the state grants, Barrag谩n asked how those grants would be rolled out, considering the federal judge鈥檚 decision on race.

California was awarded a $70 million state capacity grant. Early this year, the Justice Department to Congress asserting that the state grant and the competitive grant program both are illegally based on race, citing the Supreme Court鈥檚 decision invalidating affirmative action in higher education admissions. Roth declined to answer Barrag谩n鈥檚 question, noting there is active litigation.

Barrag谩n said she was 鈥渆xtremely鈥 frustrated by 鈥渟ome of the responses or nonresponses.鈥

Stephen Yusko, a spokesperson with the National Telecommunications and Information Administration, declined to comment or respond to questions for this article.

The government and the National Digital Inclusion Alliance agreed to pause court proceedings to give the agency time to reinstate the competitive grant program. The NDIA has also proposed that the agency provide status reports every 30 days during the court pause 鈥渢o ensure prompt attention to reinstatement,鈥 according to the most recent .

鈥淲e need to make sure it鈥檚 all moving forward,鈥 Siefer said.

Related Topics

Race and HealthRural HealthBiden AdministrationHomelessIndigenous HealthMidwest BureauSouthern BureauTechnologyTrump AdministrationU.S. CongressAlabamaArkansasMichiganOregonOhioTexasPennsylvaniaOklahomaCalifornia

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