Federal Government Cancels Vermont's $5.3 Million Digital Equity Grant

Vermont Community Broadband Board (VCBB) has been notified that Vermont’s $5.3 million Digital Equity Capacity Grant has been canceled as of May 9, 2025. The grant was being used to implement Vermont’s Digital Empowerment (DE) Program.

 

The DE Program potentially impacts 95% of Vermonters. The Digital Equity Act, passed by a bipartisan majority of Congress, aims to help people who have barriers to accessing the internet, including people living in rural areas, people who are 60+, people with a low-income, veterans, people with disabilities, those with language barriers, members of racial and ethnic minorities, and incarcerated people. Vermont’s program includes devices for people who can’t afford to buy them, digital skills training to teach people how to get online effectively and safely, and workforce training to prepare Vermonters for digital and/or remote work. The program was also going to award subgrants to organizations across the state working to bridge the digital divide.

VCBB received this letter from National Institute of Standards and Technology. According to the Department of Commerce and the National Telecommunications and Information Administration (NTIA), the termination stems from a federal determination that the Digital Equity Capacity Program, established under 47 U.S.C. § 1723, is unconstitutional. As provided in the termination letter, federal officials have declared that the program and its grants “were created with, and administered using, impermissible and unconstitutional racial preferences.” As of Friday, May 9th, the Federal Government has terminated these grants for all states and territories that received Capacity Grants.