§1723 State Digital Equity Capacity Grant Program

Summary

The Assistant Secretary must set up a State Digital Equity Capacity Grant Program at the Department of Commerce. The program must give money to States to promote digital equity, support digital inclusion work, and help more people get and use broadband. The Assistant Secretary must talk with other federal agencies (for example, Agriculture, Housing and Urban Development, Education, Labor, HHS, Veterans Affairs, Interior, the FCC, FTC, IMLS, SBA, and the Appalachian Regional Commission) and must make sure the program does not conflict with other federal broadband efforts. Each Governor must pick an administering entity (examples: the State, a local government, an Indian Tribe or Native organization, a nonprofit, a community anchor, a school district, workforce or adult education agencies, public housing authorities, or a partnership of these) to get and manage the grant, write and run the State Digital Equity Plan, make subgrants, and keep best-practice materials. Each State that wants money must make a State Digital Equity Plan. The plan must list barriers, set measurable goals (about broadband access and cost, online access to public services, digital skills, online privacy and security, and devices and tech help), show how goals affect jobs, education, health, civic life, and services, and say who the State will work with. The plan must be open for public comment for at least 30 days and the State must consider and respond to comments. The Assistant Secretary must award planning grants starting in the first fiscal year after November 15, 2021; States must apply within 60 days of each funding notice and may get only one planning grant. Planning grants must be spent in 1 year (with up to a 180-day extension) and may only be used to make a plan and to make small subgrants to help write the plan. Starting no later than 2 years after planning grants begin, the Assistant Secretary must award yearly capacity grants to help States implement their plans and fund digital inclusion. States must apply within 60 days and include their plan and required assurances. Grant amounts use a formula: 50% based on state population, 25% on the number of people in covered groups, and 25% on lack of broadband availability and adoption (using FCC, Census, and NTIA survey data or other approved sources). No State’s award may be less than 0.5% of the total funds for that year. Capacity grants must be spent over 5 years. Up to 20% may be used to update the plan, funds may be used to run the plan and make grants to local entities (with certifications to avoid unjust enrichment and to allow evaluations), up to 5% may be used for evaluations, and up to 3% for administration. States must include fiscal controls, reporting, and records in their applications. The Assistant Secretary can end a grant after notice and a hearing if funds are not being used properly, and any unused money must be redistributed by the same formula. Grant recipients must publicly report yearly on use and progress, and the Department must run a free searchable online database with applications, reports, public comments, and other grant information. Grants must add to other funds, not replace them. From each year’s money, the Assistant Secretary must reserve up to 5% for program administration and support, at least 5% for Indian Tribes, Alaska Native entities, and Native Hawaiian organizations, and at least 1% for U.S. territories and possessions. The law authorizes $60,000,000 for planning grants (available until spent), $240,000,000 for fiscal year 2022, $300,000,000 for each fiscal year 2023–2026, and whatever sums are needed after that period.