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Round-Up for the Week of July 22-26, 2024

On July 24, the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) announced the availability of nearly $1 billion to fund programs that ensure communities have access to devices and skills needed to fully participate in the digital world, regardless of their background or circumstances. NTIA released a Notice of Funding Opportunity (NOFO) for the Digital Equity Competitive Grant Program, an initiative created by Congress in the Digital Equity Act of 2021 (a part of the larger Infrastructure Investment and Jobs Act). 

The Digital Equity Act created three funding programs:

1. The $60 million State Digital Equity Planning Grant Program which supported states and territories in crafting their own digital equity plans.
2. The $1.44 billion State Digital Equity Capacity Grant Program. The NOFO for this program was released on March 29, 2024, and will provide funds to states and U.S. Territories to implement their Digital Equity Plans, as well as provide funds for Indian Tribes, Alaska Native entities, and Native Hawaiian organizations to address digital equity.
3. The $1.25 billion Competitive Grant Program will fund annual grant programs for five years to address the gaps in the implementation of existing State Digital Equity Plans, proposals that will supplement or further advance State Digital Equity Plans, and/or proposals that address barriers to digital equity that the current State Digital Equity Plans failed to identify.

The Digital Equity Competitive Grant Program will support applications that further one or more of the following goals:

• economic stability, including workforce development and employment opportunities; 
• access to quality education; 
• access to healthcare; 
• social and civic engagement; and
• community access to the benefits of Internet technology.

Connecting Covered Populations

The Competitive Grant Program will make funds available to a wide range of entities to address barriers to digital equity faced by what Congress identified as Covered Populations.¹ The Competitive Grant Program will support efforts to achieve digital equity, promote digital inclusion activities, and spur greater adoption and meaningful use of broadband among the Covered Populations. Specifically, the Digital Equity Act authorizes funds to be used for:

• the development and implementation of digital inclusion activities that benefit the Covered Populations;
• programs that facilitate the adoption of broadband by Covered Populations to provide educational and employment opportunities;
• training programs that cover basic, advanced, and applied skills;
• workforce development programs;
• access to equipment, instrumentation, networking capability, hardware and software, or digital network technology for broadband services at low or no cost; and
• the construction or operation of public access computing centers for Covered Populations.

Eligibility for Funding

The following organizations are eligible to apply for Competitive Grant Program support:

1. A political subdivision, agency, or instrumentality of a state, including an agency of a state that is responsible for administering or supervising adult education and literacy activities, or for providing public housing, in the state.
2. An Indian Tribe, an Alaska Native entity, or a Native Hawaiian organization.
3. A not-for-profit foundation, corporation, institution, or association.
4. A community anchor institution (defined by Congress to be a public school, a public or multi-family housing authority, a library, a medical or healthcare provider, a community college or other institution of higher education, a state library agency, and any other nonprofit or governmental community support organization.
5. A local educational agency. [In general, the term “local educational agency” means a public board of education or other public authority legally constituted within a state for either administrative control or direction of, or to perform a service function for, public elementary schools or secondary schools in a city, county, township, school district, or other political subdivision of a State, or of or for a combination of school districts or counties that is recognized in a State as an administrative agency for its public elementary schools or secondary schools.]
6. An entity identified by a state board or local board that carries out a workforce development program.
7. A partnership between any of the entities listed above. In fact, NTIA recognizes that partnerships are an effective means of serving Covered Populations and they are encouraged in the NOFO. Eligible entities may participate as a member of more than one partnership.

The Digital Equity Act explicitly says that schools are not eligible for this support—nor are the state broadband offices that participated in NTIA's State Digital Equity Planning Grant Program or the State Digital Equity Capacity Grant Program.

Funding Available

As noted above, the Competitive Grant Program is a $1.25 billion initiative. But Congress has appropriated $750 million, less NTIA’s cost of administering the program,² for grants under the Digital Equity Competitive Grant Program through fiscal year 2024 ($250,000,000 for each of fiscal years 2022, 2023, and 2024). Congress has also appropriated an additional $250,000,000, less administrative expenses, for fiscal year 2025 which is anticipated to become available in October of 2024. If these funds become available, NTIA intends to award these additional funds—including a five percent set-aside for Native Entities and a one percent set-aside for U.S. Territories. Any funds not awarded, including further appropriations, will be made available through future NOFO(s). [More on these set-asides follow.]

Congress established a five percent set-aside exclusively for Native Entities. Accordingly, NTIA has set aside $37.5 million for Native Entities and will increase this amount to $50 million if fiscal year 2025 funds become available. However, Native Entities are also included within the definition of an Eligible Entity under the Competitive Grant Program. Accordingly, applications from Native Entities will be considered as part of the Competitive Grant Program along with other applications. If Native Entities are not funded to at least the amount of the Native Entity set-aside during the initial award process, lower scoring Native Entity applications will be considered until either the set aside has been exhausted, or until there are no further qualifying Native Entity applications. Any remaining funds from the Native Entity set-aside that are not distributed under this NOFO will be made available to Native Entities in future NOFO(s).

Congress also established a one percent set-aside for U.S. Territories. Accordingly, NTIA has set aside $7.5 million for U.S. Territories and will increase this amount to $10 million if fiscal year 2025 funds become available. Individual awards to U.S. Territories will not exceed $2.5 million. While NTIA anticipates that awards to individual U.S. Territories will be greater than $1 million, this is not a mandatory minimum and will be determined based on the number of applications and amount of funding requested. Any remaining funds from the set aside for U.S. Territories that are not distributed under this NOFO will be made available to U.S. Territories in future NOFO(s).

NTIA expects to make individual awards within a range of $5 million and $12 million. (U.S. Territories are not subject to this estimated funding range due to the amount of funds available.) This funding range is not a required minimum or maximum, but entities requesting award amounts outside that range must explain why their application falls below or above this range and must provide a compelling justification for the variance in their project size. NTIA encourages partnerships of multiple eligible entities to consider applying for larger awards.

As required by law, there is a ten percent matching requirement for Competitive Grant awards. NTIA may grant a waiver of this limitation if an applicant petitions for a waiver and demonstrates financial need. Applications that propose matching funds in excess of ten percent will be given additional consideration over those that meet only the minimum requirement. (U.S. Territories may not be subject to the federal cost share/matching requirement depending upon the size of those awards.) Matching funds may be in the form of either cash or in-kind contributions, which are non-cash donations of property, goods, or services that benefit the project.

A recipient shall use no more than ten percent of the grant amount for administrative costs in carrying out any of the activities supported by the award. A recipient shall use no more than ten percent of the grant amount to measure and evaluate the activities supported with the grant amounts (see more below).  

Evaluating Applications

NTIA encourages innovative approaches that transcend existing digital equity programs. Proposed activities must focus on creating the necessary conditions to empower individuals and communities with the technological capacity to fully participate in society and the economy. Applications should support efforts to achieve digital equity, promote digital inclusion activities, and/or spur greater adoption of broadband among the Covered Populations. Specifically, the proposed programs must support at least one of the following activities:

1. Develop and implement digital inclusion activities that benefit one or more of the Covered Populations;
2. Facilitate the adoption of broadband by the Covered Populations in order to provide educational and employment opportunities;
3. Implement training programs for the Covered Populations that cover basic, advanced, and applied skills;
4. Implement workforce development programs;
5. Make available equipment, instrumentation, networking capability, hardware and software, or digital network technology for broadband services to Covered Populations at low or no cost;
6. Construct, upgrade, expand, or operate new or existing public access computing centers for Covered Populations through community anchor institutions.

In assessing applications, NTIA will consider whether the proposed program will increase Internet access and the adoption of broadband among Covered Populations to be served by the applicant, the comparative geographic diversity of the applications, and whether the proposed program is duplicative or conflicts with other programs. NTIA will also assess the extent to which a project or activity is consistent with the purpose of the Digital Equity Act Competitive Grant Program, which is to achieve digital equity, promote digital inclusion activities, and spur greater adoption of broadband among covered populations.

NTIA suggests applicants keep in mind the criteria and focal points:

1. Focus on Covered Populations: Projects should align with the goals of the Digital Equity Act and focus on the priorities of the Covered Populations being served, including subgroups within each Covered Population. Applicants should prioritize projects with the greatest potential impact, such as targeting low-income individuals within other Covered Populations.
2. Long-lasting and Meaningful Change: Projects should address systemic barriers and gaps to digital access. Projects/activities should reflect this goal and consider the sustainability of initiatives created through this funding.
3. Measurable Implementation Strategies: Proposed programs and activities should be based on objectives that are measurable, achievable, sustainable, timebound, and are designed to address identified disparities directly and logically.
4. Stakeholder Engagement: Stakeholders who are directly affected by the proposed strategies and interventions should be involved to encourage ongoing feedback regarding the effectiveness of the interventions and to seek input on potential solutions and improvements.

Evaluating the Work

Competitive Grant recipients and subrecipients are required to incorporate program measurement and evaluation activities as part of their program design and implementation. Information collected will include, but is not limited to:

• The Covered Population(s) being served.
• The total number of individuals being served.
• The number of individuals that belong to each Covered Population.
• Anecdotal/personal testimony demonstrating the positive experiences generated through the program.
• An assessment of Program effectiveness, including:
  • Whether the grant’s intended objectives were accomplished, including whether it achieved its intended outcomes;
  • Whether the program resulted in measurable changes in participants from the Covered Populations, such as in knowledge or skills, including collecting data before, during, and after the program to understand potential changes;
  • Whether the activity or intervention is making/has made progress toward the goals and objectives of the grant;
  • How efficiently the program achieved its goals.

Timeline

Complete applications from Eligible Entities, including Indian Tribes, Alaska Native entities, and Native Hawaiian organizations must be received through the NTIA Grants Portal (https://grants.ntia.gov) no later than 11:59 p.m. Eastern Time (ET) on September 23, 2024. For the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the United States, the deadline is 11:59 p.m. Eastern Time (ET) on October 22, 2024. Application materials are available at broadbandusa.ntia.doc.gov.

NTIA expects to begin issuing awards to applicants pursuant to this Notice of Funding Opportunity (“NOFO”) by late December 2024 and no later than April 20, 2025. NTIA expects to make awards on a rolling basis. NTIA anticipates that it will issue between 150 and 200 grant awards under this NOFO.

Grant recipients must expend the grant amounts during the four-year period after the date on which the entity is awarded the grant. Grant recipients may continue to measure and evaluate the activities supported with the grant amounts for a period of one year after the initial four year Period of Performance. No extensions to the four year Period of Performance or the one year evaluation period will be granted.

Editor's note: This article is meant to serve as a brief introduction to the Digital Equity Competitive Grant Program Notice of Funding Opportunity.
Please read the NOFO for additional details and contact NTIA Director of Digital Equity Angela Thi Bennett with any questions.

Notes

1. Congress defined Covered Populations as individuals who live in "covered households" (that is, a household with income that is not more than 150 percent of an amount equal to the poverty level), aging individuals, incarcerated individuals, veterans, individuals with disabilities, individuals with a language barrier (think: those who are learning English or who have low levels of literacy), individuals who are members of a racial or ethnic minority group, and individuals who primarily reside in a rural area.
2. NTIA will set aside up to approximately $75 million from available funds to cover the lifecycle costs for the administration and oversight of awards made under this Notice of Funding Opportunity.

Quick Bits

• Memorandum of Understanding Regarding Information Sharing Between FCC, USAD, NTIA, and the US Treasury (NTIA)
• What’s Next for Digital Equity? Preparing for the Competitive Grant Program (NTIA)
• FCC Launches New Mobile Speed Test App (FCC)
• New court ruling puts Universal Service Fund in hot water (Fierce)
• USTelecom Letter to Commerce Secretary Addresses BEAD Low-Cost Service Requirement 

Weekend Reads

• Exacerbating the divide? Investigating rural inequalities in high speed broadband availability (Telecommunications Policy)
• To Reduce Disability Bias in Technology, Start With Disability Data (Center for Democracy & Technology)
• Online Health and Safety for Children and Youth: Best Practices for Families and Guidance for Industry (NTIA)

ICYMI from Benton

• Leaving Money on the Table: The ACP’s Expiration Means Billions in Lost Savings
• Broadband Affordability is an Ongoing Challenge for Low-Income Households
• Responses to Universal Service Fund Decision
• 2024 Opportunity Fund Fellowship Call
• Delaware Wants to be the First State to Achieve Universal Broadband
• Will BEAD Networks Deliver Affordable Broadband for All in West Virginia? 

Upcoming Events

Jul 30—Direct Video Calling Forum (FCC)

Aug 7—August 2024 Open Federal Communications Commission Meeting (FCC)

Aug 14—Precision Agriculture Task Force (FCC)

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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Benton Institute
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