Digital Divide Deepens as Federal Funding for Internet Access is Cut

In a rapidly digitizing world, access to the internet has become a fundamental necessity, akin to electricity or running water. Yet, for many in rural America, this essential service remains out of reach. Recent developments have exacerbated this issue, particularly following the abrupt cancellation of a federal program designed to bridge the digital divide. This decision has left many communities, especially those in underserved areas, grappling with the consequences.

The Role of Digital Navigators

Megan Waiters, a digital navigator in West Alabama, has witnessed firsthand the transformative power of internet access. She recounts stories of individuals she has helped, including a seven-year-old boy unable to complete his homework without a tablet and a 91-year-old woman learning to navigate health portals on her smartphone. “They have healthcare needs but lack the digital skills necessary,” Waiters explained. Her organization has provided computers and tablets while offering classes on how to use the internet for essential tasks like banking and healthcare.

However, the impact of her work now carries a bittersweet tone. Waiters is part of a national network of digital navigators whose efforts were supported by a $2.75 billion federal program that was abruptly defunded this spring. This funding was crucial for initiatives aimed at connecting underserved populations to the digital world.

Political Backdrop and Funding Cuts

The funding cut came shortly after former President Donald Trump labeled the Digital Equity Act as unconstitutional on his social media platform, Truth Social. He criticized the act for allegedly promoting “public assistance based on race,” a claim that has sparked significant debate among policymakers and advocates alike. The Digital Equity Act was designed to benefit low-income households, seniors, incarcerated individuals, rural residents, veterans, and racial or ethnic minorities.

Experts, including politicians, researchers, and librarians, have voiced concerns that the defunding of this program, along with other federal broadband initiatives, jeopardizes efforts to integrate rural and disadvantaged residents into the modern economy. Sam Helmick, president of the American Library Association, noted, “You could see lives changing,” as libraries helped individuals access medical prescriptions online or assisted laid-off factory workers in applying for jobs.

The Broader Context of Digital Equity

The Digital Equity Act is part of a larger infrastructure law passed in 2021, which allocated $65 billion to build high-speed internet infrastructure and connect millions of Americans lacking access. This year, Congress has pushed for a modern approach to assist Americans, urging state leaders to prioritize new and emerging technologies through the $50 billion Rural Health Transformation Program.

A recent analysis by KFF Health News revealed that nearly 3 million Americans live in areas with a shortage of healthcare professionals, where modern telehealth services are often inaccessible due to poor internet connectivity. In approximately 200 counties, primarily rural, residents face higher risks of illness and shorter life expectancies compared to the national average. Access to high-speed internet is increasingly recognized as a critical social determinant of health, alongside factors like nutrition and stable housing.

Christina Filipovic, who leads research at Tufts University’s Institute for Business in the Global Context, emphasized the importance of internet access, stating, “It provides an additional layer of resilience.” A 2022 study found that high-speed internet access correlated with lower COVID-19 mortality rates, particularly in metropolitan areas.

The Fallout from Funding Cuts

During the COVID-19 pandemic, federal legislators initiated a grant program funded by the infrastructure law, known as the Affordable Connectivity Program, aimed at connecting more individuals to their jobs, schools, and healthcare providers. However, in 2024, Congress chose not to renew funding for this program, which had enrolled approximately 23 million low-income households.

In July, U.S. Secretary of Commerce Howard Lutnick announced a delay in the infrastructure law’s construction initiative, known as the Broadband Equity, Access, and Deployment (BEAD) program, while also planning to reduce regulatory burdens. Over 40 states and territories have submitted proposals to extend high-speed internet to underserved areas under the new guidelines.

The cancellation of the Digital Equity Act funding occurred just days after Trump’s social media post. While many states had received funds to plan their programs in 2022, the subsequent round of funding, intended for implementation, was largely awarded but not distributed. Federal regulators, including the National Telecommunications and Information Administration (NTIA), informed beneficiaries that the grants would be canceled, citing “unconstitutional racial preferences.”

In Phoenix, Arizona, city officials learned in January that they would receive $11.8 million to enhance internet access and provide digital literacy training. However, a notification on May 20 indicated that all grants, except those for Native Entities, had been canceled. Phoenix Mayor Kate Gallego expressed disappointment, stating that the funding would have benefited 37,000 residents.

Advocacy and Community Response

In response to the funding cuts, Democratic leaders in Georgia sent a letter to Lutnick and the then-acting NTIA administrator, Adam Cassady, demanding the restoration of funds. They argued that the federal cuts undermine Congressional intent and erode public trust.

Senator Patty Murray, a key architect of the Digital Equity Act, expressed disbelief that no Republican governors joined the fight against the funding cuts, emphasizing the need for collective action. “The other avenue is through the courts,” she stated.

All 50 states developed digital equity plans after extensive community engagement, including focus groups and public consultations. Angela Thi Bennett, the NTIA’s Director of Digital Equity, described this process as “the largest demonstration of participatory democracy our country has ever seen.” However, attempts to reach Thi Bennett for comment were unsuccessful.

Caroline Stratton, research director at the Benton Institute for Broadband and Society, highlighted that the funding allowed states to staff their offices, identify existing high-speed internet programs, and create plans to address deficiencies. “This motivated people to investigate,” she noted, prompting inquiries into how broadband initiatives could contribute to improving health outcomes.

The Continuing Challenge of the Digital Divide

Despite the challenges posed by the funding cuts, states had to create programs targeting specific populations. Some states modified their plans to include additional groups, such as immigrants and the homeless. Angela Siefer, executive director of the National Digital Inclusion Alliance, lamented the loss of funding, stating, “The digital divide is not over.”

Her organization had planned to use nearly $26 million to collaborate with groups nationwide but did not receive the funds. A lawsuit was filed on October 7 to compel the government to distribute the money.

For Megan Waiters, the stakes are personal. Her organization, Community Service Programs of West Alabama, was set to receive a $1.4 million grant to continue its work. Over the past two years, Waiters has dedicated countless hours to reaching rural residents, distributing 648 devices and conducting 117 digital skills classes. “People of all races, ages, and economic backgrounds” have benefited from her efforts, she said, urging policymakers to understand the real-life implications of their decisions.

Conclusion

The cancellation of federal funding for digital equity initiatives has left many communities in a precarious position, further entrenching the digital divide. As advocates and policymakers grapple with the implications of these cuts, the need for comprehensive strategies to ensure equitable access to the internet remains more pressing than ever. The stories of individuals like Megan Waiters serve as a poignant reminder of the critical role that digital access plays in fostering healthier, more connected communities.