The Digital Equity Act of 2021

The Digital Equity Act of 2021

August 12, 2021
The Digital Equity Act of 2021
Introduction
Defined Terms in the Act
The Digital Equity Act is included in the Senate-passed
Digital equity means “the condition in which individuals
version of the Infrastructure Investment and Jobs Act (H.R.
and communities have the information technology capacity
3684). Submitted as an amendment in the nature of a
that is needed for full participation in the society and
substitute (S.Amdt. 2137) on August 1, 2021, by Senator
economy of the United States.”
Charles Schumer for Senator Kyrsten Sinema, it passed by
the Senate August 10, 2021. The final language of the act
Digital inclusion means “the activities that are necessary to
was not available at the time of publication.
ensure that all individuals in the United States have access
to, and the use of, affordable information and
The Digital Equity Act states that access to a broadband
communication technologies, such as reliable fixed and
connection and digital literacy have become increasingly
wireless broadband internet service; internet-enabled
necessary for individuals to participate in society, the
devices that meet the needs of the user; and applications
economy, and civic institutions; access health care and
and online content designed to enable and encourage self-
essential services; obtain education; and build careers. The
sufficiency, participation, and collaboration.” Further, it
act cites high societal and economic costs of digital
“includes obtaining access to digital literacy training; the
exclusion, which decreases an individual’s opportunity for
provision of quality technical support; and obtaining basic
economic success, educational achievement, positive health
awareness of measures to ensure online privacy and
outcomes, social inclusion, and civic engagement.
cybersecurity.”
Additionally, among other observations, the act asserts that
Digital literacy means the “skills associated with using
digital exclusion exacerbates wealth and income gaps, and
technology to enable users to find, evaluate, organize,
that reducing digital exclusion will require additional,
create, and communicate information.”
ongoing investment and research efforts.
A community anchor institution means a “public school,
The Digital Equity Act would establish two grant programs:
a public or multi-family housing authority, a library, a
the State Digital Equity Capacity Grant Program and the
medical or healthcare provider, a community college or
State Digital Equity Competitive Grant Program. Both
other institution of higher education, a state library agency,
programs would be administered by the Assistant Secretary
and any other non-profit or governmental community
of Commerce for Communications and Information, who
support organization.”
also serves as Administrator of the National
Telecommunications and Information Administration
The term covered populations means “individuals who
(NTIA). In developing these programs, the Assistant
live in covered households; aging individuals; incarcerated
Secretary would be required to consult with the Secretaries
individuals, other than individuals who are incarcerated in a
of Agriculture, Housing and Urban Development,
Federal correctional facility; veterans; individuals with
Education, Labor, Health and Human Services, Veterans
disabilities; individuals with a language barrier” (i.e., those
Affairs, and the Interior; the Federal Communications
who are English learners and have low levels of literacy), as
Commission (FCC); the Federal Trade Commission; the
well as “individuals who are members of a racial or ethnic
Director of the Institute of Museum and Library Services;
minority group; and individuals who primarily reside in a
the Administrator of the Small Business Administration; the
rural area.”
federal co-chair of the Appalachian Regional Commission;
and the head of any other agency that the Assistant
A covered household means “a household, the income of
Secretary determines to be appropriate.
which for the most recently completed year is not more than
150% of an amount equal to the poverty level, as
The act would require the Assistant Secretary to provide
determined by using criteria of poverty established by the
annual reports to Congress on the status of each program.
Bureau of the Census.”
States could appeal or challenge the amount of the grants
they are awarded under both programs. Additionally, both
State Digital Equity Capacity Grant
programs are intended to supplement, not supplant, other
Program
federal or state funds intended to promote digital equity.
Grant and subgrant recipients for both programs would be
The intent of the State Digital Equity Capacity Grant
required to report on their activities and use of funds each
Program is to ensure that states have the capacity to
year to the Assistant Secretary.
promote the achievement of digital equity and support
digital inclusion activities. This program would have two
phases. Phase one would consist of the development of a
https://crsreports.congress.gov

The Digital Equity Act of 2021
State Digital Equity Plan; phase two would consist of
Use Survey; and any other source that the Assistant
awarding grants to states for the implementation of their
Secretary determines to be appropriate.
plans.
The minimum amount of any grant would have to be at
For the purposes of this program, an administering entity
least 0.5% of the total amount of grants awarded to eligible
is an entity selected by the governor (or equivalent official)
states for that fiscal year. If funds remain after all awards
to apply for funding under this program that would be
have been made in a fiscal year, they would be distributed
responsible for receiving and administering capacity grants;
to states that have already been awarded grants. States
overseeing the State Digital Equity Plan; and making
would be required to expend the grant funds during a five-
subgrants to eligible entities. An eligible entity is a state,
year period beginning on the date the state is awarded the
Indian tribe, Alaska Native entity, or a Native Hawaiian
grant funds.
organization; a not-for-profit entity providing services in
The act would authorize $240.0 million to be appropriated
the state; a community anchor institution; a local
for FY2022 and $300.0 million per year for FY2023
educational agency; an entity that conducts a workforce
through FY2026. From these amounts, not more than 5%
development program; a state agency responsible for
could be used for program administration; at least 5%
administering or supervising adult education and literacy
would be made available for grants to Indian tribes, Alaska
activities; a public or multi-family housing authority; or a
Native entities, and Native Hawaiian organizations; and at
partnership between any of these entities. Schools may not
least 1% would be made available for grants to the U.S.
be an administering entity.
Virgin Islands, Guam, American Samoa, and the
Phase I: State Digital Equity Planning Grants
Commonwealth of the Northern Mariana Islands.
During the first year after enactment of the Digital Equity
State Digital Equity Competitive Grant
Act, the Assistant Secretary would be required to award
Program
grants to states for the development of their State Digital
The intent of the State Digital Equity Competitive Grant
Equity Plans. To be awarded a planning grant, a state would
Program is to award grants to eligible entities to support
submit an application to the Assistant Secretary. States
efforts to achieve digital equity, promote workforce
would be eligible for only one planning grant. Applicants
development, promote digital inclusion activities, and spur
would be required to name and describe the state’s
greater adoption of broadband among covered populations.
administering entity and provide a certification that the
The grants would cover not more than 90% of the cost of a
state’s administering entity would develop its State Digital
single project, although that limit could be waived. Grants
Equity Plan within one year unless an extension, not longer
would be required to support at least one of the following
than six months, is granted. Awards would have to be made
activities:
within 60 days of the application window opening, and

states would be allowed to appeal the amount of the grant
develop and implement digital inclusion activities
awarded. The act would appropriate $60.0 million for
that benefit covered populations;

planning grant awards.
facilitate the adoption of broadband by covered
populations for educational and employment
Phase II: State Digital Equity Capacity Grants
opportunities;
The distribution of the State Digital Equity Capacity Grants
 implement training programs for covered
would begin within two years of the distribution of the
populations that cover basic, advanced, and applied
planning grants. States would be required to apply for the
skills, or other workforce development programs;
grants. Applicants would be required to provide a
 provide equipment, networking capability,
description of the state’s administering entity, its Digital
hardware and software, or digital network
Equity Plan, and certification that the state would
technology for broadband services to covered
implement that plan. Grant amounts would be calculated
populations at low or no cost; or
according to the following formula:
 construct, upgrade, expand, or operate new or

existing public access computing centers for
50% to be based on the population of the state in
covered populations through community anchor
proportion to the total population of all eligible states;

institutions.
25% to be based on the number of individuals in the
state who are members of covered populations in
The act would authorize $250.0 million to be appropriated
proportion to the total number of individuals in all
for each of the first five fiscal years in which funds are
eligible states who are members of covered
made available (the program could be extended). From
populations; and
these amounts, not more than 5% could be used to
 25% to be based on the comparative lack of
administer the program; at least 5% would be set aside for
availability and adoption of broadband in the state in
grants to Indian tribes, Alaska Native entities, and Native
proportion to the lack of availability and adoption of
Hawaiian organizations; and at least 1% would be set aside
broadband of all eligible states.
for grants to the U.S. Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
The data used to calculate the grant amounts would be
collected from the FCC’s “Section 706 Report”; the
Islands.
American Community Survey; if necessary, other data
Patricia Moloney Figliola, Specialist in Internet and
collected by the Bureau of the Census; the NTIA Internet
Telecommunications Policy
https://crsreports.congress.gov

The Digital Equity Act of 2021

IF11901

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF11901 · VERSION 1 · NEW