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Trump Halts Digital Equity Act Funding Impacting Rural and Vulnerable Communities

President Trump labeled the Digital Equity Act as unconstitutional and swiftly terminated its $2.75 billion funding, disrupting grants aimed at bridging the digital divide. The Act supports vulnerable groups including rural residents, veterans, and older Americans by enhancing internet access and digital tools. This move threatens critical broadband initiatives and faces legal challenges as advocates emphasize its importance for equitable infrastructure expansion.

Published May 12, 2025 at 07:10 PM EDT in Cloud Infrastructure

President Trump recently targeted the Digital Equity Act, a lesser-known but crucial $2.75 billion program embedded within the 2021 bipartisan infrastructure bill. He condemned the initiative as “racist” and “unconstitutional” on his social media platform, Truth Social, and swiftly moved to terminate the grants associated with it. This abrupt action has sent shockwaves through states and nonprofits that rely on this funding to close the digital divide.

The Digital Equity Act was designed to address the third critical component of the digital divide: not just access to internet infrastructure or affordability, but the tools and skills necessary for effective use. It supports a broad range of populations, including older Americans, veterans, people with disabilities, rural residents, and racial or ethnic minorities. Contrary to claims of racial bias, the Act’s beneficiaries encompass approximately 80% of the U.S. population, many of whom live in rural areas that heavily overlap with Trump’s voter base.

The termination of these grants jeopardizes essential services such as Wi-Fi hotspot rentals in rural libraries, workforce training programs, and digital safety classes. For example, in Maine, where nearly 90% of the population qualifies under the Act, $35 million had been allocated to support digital equity initiatives. Local organizations now face budget reconfigurations and potential layoffs due to the sudden funding cuts.

This move aligns with previous efforts by the Trump administration to dismantle broadband programs linked to the Biden administration, including the $42.5 billion Broadband Equity Access and Deployment (BEAD) program. Critics argue that disrupting the Digital Equity Act undermines the effectiveness of broader infrastructure investments aimed at expanding internet access nationwide.

Legal challenges are anticipated as the termination notice is seen by many as an unconstitutional overreach. Senator Patty Murray, the Act’s original sponsor, condemned the action as illegal and vowed to fight it vigorously. Advocates emphasize that the funding was authorized by Congress and cannot be nullified by executive fiat.

The broader significance of this development lies in its impact on digital equity efforts nationwide. As broadband access becomes increasingly essential for education, healthcare, and economic opportunity, cutting off funds designed to empower vulnerable populations risks widening existing disparities. The controversy also highlights the political tensions surrounding infrastructure policy and the framing of equity initiatives.

For stakeholders in broadband infrastructure, digital inclusion, and community development, monitoring these policy shifts is critical. Understanding the interplay between federal funding, political agendas, and local implementation can inform strategic planning and advocacy efforts to sustain and grow digital equity programs.

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