In western Alabama, Megan Waiters recalls the faces of those she’s helped bridge the digital divide: a 7-year-old who couldn’t complete his classwork without a tablet, and a 91-year-old who, after some coaching, learned to check her health care portal on a smartphone. "They have health care needs, but they don’t have the digital skills," Waiters told KFF Health News, reflecting on her role as a digital navigator. For the past two years, she’s handed out 648 devices—laptops, tablets, and SIM cards—and taught 117 two-hour digital skills classes at libraries, senior centers, and workforce programs in and around Tuscaloosa, Alabama.
But for Waiters and thousands of others working to connect Americans to the internet, the story has taken a bitter turn. This spring, the $2.75 billion Digital Equity Act, part of the landmark 2021 infrastructure law, saw its funding abruptly canceled. The move followed a post on Truth Social by President Donald Trump, who called the Act unconstitutional and a “racist” handout. “No more woke handouts based on race!” he declared, as reported by Broadband Communities.
The Digital Equity Act was designed to close the digital divide by supporting low-income households, older residents, rural Americans, veterans, and minority groups—those who often find themselves on the wrong side of the nation’s technological gap. Its funding was a lifeline for digital navigators like Waiters and organizations across all 50 states, which had spent months developing plans to bring high-speed internet and digital skills to the underserved.
But in May 2025, the National Telecommunications and Information Administration (NTIA) notified grant recipients that, with the exception of grants to Native Entities, all Digital Equity Act grants were terminated. Phoenix, for example, was set to receive $11.8 million to expand internet access and digital literacy for 37,000 residents. Instead, city officials received an email on May 20 stating the funds would no longer be coming. "It’s a shame," Phoenix Mayor Kate Gallego told KFF Health News. "The money would have helped 37,000 residents get internet access."
The fallout has been swift and widespread. Georgia’s Democratic leaders penned a letter in July urging the NTIA and Commerce Secretary Howard Lutnick to reinstate the funding, arguing that the cuts ignore congressional intent and violate public trust. All 50 states had crafted digital equity plans after exhaustive community engagement, but the sudden funding halt has left those blueprints gathering dust.
Waiters’ employer, Community Service Programs of West Alabama, had been expecting a $1.4 million grant. Now, the future of their outreach is uncertain. "People of all races, of all ages, of all financial backgrounds" benefited from her work, Waiters said. She urged the administration to witness firsthand "what it actually looks like for the people I serve."
The Digital Equity Act wasn’t the only casualty. The Affordable Connectivity Program, a federal subsidy that had connected 23 million low-income households to the internet, was not renewed in 2024. Meanwhile, the Broadband Equity, Access, and Deployment Program—another cornerstone of the infrastructure law—was delayed and revamped in 2025 under Secretary Lutnick, with new regulatory changes slowing implementation.
For advocates, the timing couldn’t be worse. According to a KFF Health News analysis, nearly 3 million Americans live in areas with shortages of medical professionals and poor internet connections, making modern telehealth services all but inaccessible. In about 200 mostly rural counties, residents live sicker and die earlier than elsewhere, with digital access among the key social factors that shape health outcomes. "The internet provides this extra layer of resilience," said Christina Filipovic of Tufts University, whose research found that metro areas with better internet access saw fewer COVID deaths.
In response to the funding cuts, the National Digital Inclusion Alliance (NDIA), a nonprofit awarded nearly $26 million under the now-defunct program, filed a lawsuit on October 7, 2025, in the U.S. District Court in Washington D.C. The suit, supported by the Lawyers’ Committee for Civil Rights Under Law, seeks to reinstate the Digital Equity Act Competitive Grant Program. The NDIA alleges the cancellation violated the separation of powers and that the Department of Commerce lacked authority to terminate the grants. Their Digital Navigator+ (DN+) program, which would have assisted 30,000 people across 11 states, was among 65 projects left in limbo.
"Let’s be very clear, the Digital Equity Act is not unconstitutional nor racist, it passed with overwhelming bipartisan support to ensure the United States can compete in today’s modern economy," NDIA Executive Director Angela Siefer said in a statement reported by Broadband Communities. She described the lawsuit as an “extraordinary step” but emphasized the stakes: "Thousands more across the country stood to benefit from Digital Equity Act grants through other trusted community organizations."
The legal battle is just one front in a larger struggle over the future of America’s digital infrastructure. On October 15, 2025, as the federal government shutdown entered its third week, a Broadband Breakfast Live Online webinar spotlighted the mounting challenges facing anchor institutions—schools, libraries, and healthcare facilities—that provide essential broadband access to millions. "Anchor institutions are really the heartbeat of our communities," said Joey Wender, Executive Director of the Schools, Health & Libraries Broadband Coalition. Yet these institutions are now scrambling to maintain connectivity amid federal funding cuts and shifting policies.
The Universal Service Fund, a pillar of broadband support for nearly 30 years, faces its own sustainability crisis as phone bill revenues shrink and costs rise—even as the Supreme Court recently upheld its constitutionality. The Rural Healthcare Program hit its funding cap in 2025, forcing it to dip into unused funds from prior years just to meet current needs. Michael Wallace of the University of Arkansas Medical Sciences described how their telemedicine network, serving 554 sites, provides critical stroke and emergency care to rural Arkansans. But future upgrades and expansion are threatened by budget constraints.
Libraries, too, are feeling the pinch. The FCC’s decision to strike down E-Rate support for hotspot lending programs has reopened digital gaps that had just been bridged. Anne Slaughter, Director of Technology Services at Rails (serving Illinois libraries), called the timing “extremely disappointing,” especially coming on the heels of the Digital Equity Act’s cancellation. "Libraries [are the] connective tissue in just about any digital equity ecosystem," she said. Without predictable funding, schools are delaying equipment upgrades, potentially opening the door to cybersecurity threats, warned Roger Zambrano of the Los Angeles County Office of Education.
Despite these setbacks, advocates stress that bipartisan support for digital equity remains strong. Wender’s coalition recently submitted 26 pages of recommendations to a congressional working group reviewing the future of the Universal Service Fund. Meanwhile, practitioners will gather at the Anchor Nets conference in Arlington, Virginia, to share strategies for closing the digital divide.
For now, the future of programs like the Digital Equity Act hangs in the balance—caught between legal battles, political crossfire, and the lived realities of Americans who still rely on libraries, schools, and community navigators just to get online. As Waiters and countless others have shown, the digital divide isn’t just about technology—it’s about opportunity, health, and the promise of a more connected future.
