What Happens Now? The Digital Equity Program Cancellation and the 90-Day BEAD Extension: Why It Matters for Unserved Communities

May 21, 2025

Big changes are rippling across the broadband landscape and not in the way many of us hoped. 

On May 9, 2025, the NTIA announced it would cancel all three grant programs under the Digital Equity Act, a $2.75 billion effort originally designed to ensure that people had the tools, skills, and support to use broadband, not just have access to it. This news came just as states were also granted a 90-day extension to submit their final proposals under the BEAD program to allow The Department of Commerce to revise the BEAD requirements. 

At first glance, the extension may seem like a positive move; more time to plan, align partners, and finalize details. But when combined with the loss of dedicated digital equity funding, it creates a concerning gap between broadband infrastructure and broadband adoption, especially in rural and underserved communities. 

So, what was the Digital Equity Act meant to do? 

The Act included three important programs:

• Planning Grants ($60M): Helped states develop comprehensive digital equity plans by identifying barriers to broadband adoption and outlining strategies to address them—things like digital literacy, device access, and affordability. 
  
  
• Capacity Grants ($1.44B): Would have funded the actual implementation of those plans—training programs, community outreach, tech support, and more. 
  
  
• Competitive Grants ($1.25B): Aimed at nonprofits, local governments, libraries, schools, and others doing grassroots digital inclusion work, particularly for those not covered by the state-led programs. 

In short: these programs were about preparing people to use the internet, not just connecting the cables. 

What’s the impact on rural and underserved communities? 

The concern is simple but serious, infrastructure alone isn’t enough. Without funding to support digital literacy, device access, and outreach, many of the communities BEAD was designed to help could still be left behind. That’s especially true in rural areas, where adoption lags even when infrastructure is present. 

Now, with the BEAD final proposal deadline pushed back and digital equity funding off the table, states are left trying to integrate inclusion strategies into their broadband plans without the dedicated support to back them up. 

Where do we go from here? 

States, communities, and partners will need to get creative. That may mean: 

• Tapping into local or philanthropic funding 
• Reworking partnerships to fill in digital inclusion gaps 
• Pushing for federal reconsideration or restoration of these programs 

To learn more about the dedicated resources we have and gain valuable insights on grants management, please visit our Center for Grant Excellence page.

If you need further assistance, please reach out to see how we can help.

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