NTIA Releases Digital Equity Competitive Grant Guidance

On Wednesday, July 24, the National Telecommunications and Information Administration (NTIA) released the highly anticipated State Digital Equity Competitive Grant Program (Competitive Grant) Notice of Funding Opportunity (NOFO).  This came on the same day as the Internet for All event in Pittsburgh, PA, where the funding availability was announced.

“President Biden’s digital equity initiative will make the promise of the Internet a reality for everyone in our country, no matter their background. With additional access and expanded skillsets, more families will be able to thrive in our modern economy by getting an education, expanding their businesses or staying connected to their communities online,” said Secretary of Commerce Gina Raimondo.  

The Competitive Grant is the third of three digital equity programs authorized under the Digital Equity Act (DE Act) of 2021:

What Does the Competitive Grant NOFO Do?

The NOFO describes various processes and requirements under which NTIA will award funds to Eligible Entities (described below) to support efforts to achieve digital equity, promote digital inclusion activities, and spur greater adoption and meaningful use of broadband among Covered Populations, including: 

• Individuals who live in covered households; 

• Aging individuals; 

• Incarcerated individuals, other than individuals who are incarcerated in a federal correctional facility; 

• Veterans; 

• Individuals with disabilities; 

• Individuals with a language barrier, including individuals who— a. Are English learners; and b. 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.

Major components include eligibility and application requirements, funding amounts, and the review and selection process.  You can find additional resources on the BroadbandUSA website here.

Key Takeaways

While not an exhaustive list of the notable information in the NOFO, below are several key takeaways:  

Timeline

Eligible Entities and Native Entities: Complete applications from Eligible Entities, including Native Entities, must be received through the NTIA Grants Portal no later than 11:59 p.m. Eastern Time on September 23, 2024.

U.S. Territories: Complete applications from the U.S. Territories must be received through the NTIA Grants Portal no later than 11:59 p.m. Eastern Time on October 22, 2024.

NTIA expects to begin issuing awards on a rolling basis by Winter of 2024 and no later than April 20, 2025. 

Eligible Applicants

The Competitive Grant will make funds available to a wide range of entities, including:

• 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;

• An Indian Tribe, an Alaska Native entity, or a Native Hawaiian organization (“Native Entity”);

• A foundation, corporation, institution, or association that is 1) a not-for-profit entity and 2) not a school;

• A community anchor institution;

• A local educational agency;

• An entity that carries out a workforce development program; and

• A partnership between any of the entities described in paragraphs (1) through (6).

The NOFO clarifies that the above entities can apply for grants if the entity is not serving, and has not served, as the administering entity for a State under 47 U.S.C. §1723(b).

U.S. Territories are eligible to apply for funding under a separate set-aside established exclusively for U.S. Territories.

Eligible Projects

Types of projects that can be supported with Competitive Grant funds include those that:

• Develop and implement digital inclusion activities that benefit one or more of the Covered Populations; 

• Facilitate the adoption of broadband by the Covered Populations in order to provide educational and employment opportunities; 

• Implement training programs for the Covered Populations that cover basic, advanced, and applied skills; 

• Implement workforce development programs; 

• Make available equipment, instrumentation, networking capability and digital network technology for broadband services to Covered Populations at low or no cost; 

• Construct, upgrade, expand, or operate new or existing public access computing centers for Covered Populations through community anchor institutions; or

• Undertake any other project or activity the Assistant Secretary finds to be consistent with the purposes of the Program. 

Grantees may use not more than 10 percent of the grant amount to measure and evaluate their supported activities.

Awards and Funding Amounts

NTIA anticipates that it will issue between 150 and 200 Competitive Grant awards. Awards will depend upon the number of applicants and the size of the proposals submitted. 

NTIA expects to make individual Competitive Grant awards to Eligible Entities within a range of $5,000,000 and $12,000,000 (awards to U.S. Territories are not subject to this estimated funding range). Eligible 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.  

The awarded amount may not exceed 90 percent of the total project cost, (creating a 10% matching requirement) however the Assistant Secretary may grant a waiver based on financial need. Proposals with matching funds in excess of 10% will be given additional consideration over those that meet only the minimum 10% requirement.

Grant recipients must expend the grant amounts during the four year period after the date they are awarded the grant. Recipients may continue to measure and evaluate their activities for one year after the four year performance period.

$750,000,000 (less NTIA’s administration costs and the amounts reserved for Native Entities and U.S. Territories) has been appropriated through fiscal year 2024. An additional $250,000,000 (less the same expenses) has been appropriated for fiscal year 2025, which NTIA anticipates will become available in

October of 2024. 

• If the additional funds for 2025 are made available through this NOFO, there will only be one future Competitive NOFO; if the funds for fiscal year 2025 are not made available through this NOFO, there will be two additional Competitive NOFOs.

Review Process

The application review process will be conducted in three stages:

• Initial Eligibility and Administrative Review,

• Merit Review, and

• Programmatic Review.