---
kind: "section"
citation: "47 U.S.C. § 1724"
title: "47"
title_heading: "Telecommunications"
number: "1724"
heading: "Digital Equity Competitive Grant Program"
release: "119-102"
url: "https://uscodex.org/usc/47/1724"
units:
  - "Chapter 16 — Broadband Access"
  - "Subchapter II — Digital Equity Act of 2021"
---

# §1724. Digital Equity Competitive Grant Program

- (a) **Establishment—**
  - (1) **In general—** Not later than 30 days after the date on which the [Assistant Secretary](/usc/47/1721.md?p=5) begins awarding grants under [section 1723(d) of this title](/usc/47/1723.md?p=d), and not before that date, the [Assistant Secretary](/usc/47/1721.md?p=5) shall establish in the Department of Commerce the [Digital Equity](/usc/47/1721.md?p=10) Competitive Grant [Program](/usc/47/1608.md?p=9) (referred to in this section as the “[Program](/usc/47/1608.md?p=9)”), the purpose of which is to award grants to support efforts to achieve [digital equity](/usc/47/1721.md?p=10), promote [digital inclusion](/usc/47/1721.md?p=11) activities, and spur greater [adoption of broadband](/usc/47/1721.md?p=1) among [covered populations](/usc/47/1721.md?p=8).
  - (2) **Consultation; no conflict—** In establishing the [Program](/usc/47/1608.md?p=9) under [paragraph (1)](#a-1), the [Assistant Secretary](/usc/47/1721.md?p=5)—
    - (A) may consult a [State](/usc/47/1721.md?p=21) with respect to—
      - (i) the identification of groups described in subparagraphs (A) through (H) of [section 1721(8) of this title](/usc/47/1721.md?p=8) located in that [State](/usc/47/1721.md?p=21); and
      - (ii) the allocation of grant funds within that [State](/usc/47/1721.md?p=21) for projects in or affecting the [State](/usc/47/1721.md?p=21); and
    - (B) shall—
      - (i) consult with—
        - (I) the Secretary of Agriculture;
        - (II) the Secretary of Housing and Urban Development;
        - (III) the Secretary of Education;
        - (IV) the Secretary of Labor;
        - (V) the Secretary of Health and Human Services;
        - (VI) the Secretary of [Veterans](/usc/47/1721.md?p=22) Affairs;
        - (VII) the Secretary of the Interior;
        - (VIII) the Federal Communications Commission;
        - (IX) the Federal Trade Commission;
        - (X) the Director of the Institute of Museum and Library Services;
        - (XI) the Administrator of the Small Business Administration;
        - (XII) the Federal Co-Chair of the Appalachian Regional Commission; and
        - (XIII) the head of any other agency that the [Assistant Secretary](/usc/47/1721.md?p=5) determines to be appropriate; and
      - (ii) ensure that the [Program](/usc/47/1608.md?p=9) complements and enhances, and does not conflict with, other Federal broadband initiatives and [programs](/usc/47/1608.md?p=9).
- (b) **Eligibility—** The [Assistant Secretary](/usc/47/1721.md?p=5) may award a grant under the [Program](/usc/47/1608.md?p=9) to any of the following entities if the entity is not serving, and has not served, as the administering entity for a [State](/usc/47/1721.md?p=21) under [section 1723(b) of this title](/usc/47/1723.md?p=b):
  - (1) A political subdivision, agency, or instrumentality of a [State](/usc/47/1721.md?p=21), including an agency of a [State](/usc/47/1721.md?p=21) that is responsible for administering or supervising adult education and literacy activities, or for providing public housing, in the [State](/usc/47/1721.md?p=21).
  - (2) An [Indian Tribe](/usc/47/1721.md?p=16), an Alaska Native entity, or a Native Hawaiian organization.
  - (3) A foundation, corporation, institution, or association that is—
    - (A) a not-for-profit entity; and
    - (B) not a school.
  - (4) A [community anchor institution](/usc/47/1721.md?p=6).
  - (5) A [local educational agency](/usc/47/1721.md?p=18).
  - (6) An entity that carries out a [workforce development program](/usc/47/1721.md?p=23).
  - (7) A partnership between any of the entities described in [paragraphs (1) through (6)](#b-1..b-6).
  - (8) A partnership between—
    - (A) an entity described in any of [paragraphs (1) through (6)](#b-1..b-6); and
    - (B) an entity that—
      - (i) the [Assistant Secretary](/usc/47/1721.md?p=5), by rule, determines to be in the public interest; and
      - (ii) is not a school.
- (c) **Application—** An entity that wishes to be awarded a grant under the [Program](/usc/47/1608.md?p=9) shall submit to the [Assistant Secretary](/usc/47/1721.md?p=5) an application—
  - (1) at such time, in such form, and containing such information as the [Assistant Secretary](/usc/47/1721.md?p=5) may require; and
  - (2) that—
    - (A) provides a detailed explanation of how the entity will use any grant amounts awarded under the [Program](/usc/47/1608.md?p=9) to carry out the purposes of the [Program](/usc/47/1608.md?p=9) in an efficient and expeditious manner;
    - (B) identifies the period in which the applicant will expend the grant funds awarded under the [Program](/usc/47/1608.md?p=9);
    - (C) includes—
      - (i) a justification for the amount of the grant that the applicant is requesting; and
      - (ii) for each fiscal year in which the applicant will expend the grant funds, a budget for the activities that the grant funds will support;
    - (D) demonstrates to the satisfaction of the [Assistant Secretary](/usc/47/1721.md?p=5) that the entity—
      - (i) is capable of carrying out—
        - (I) the project or function to which the application relates; and
        - (II) the activities described in [subsection (h)](#h)—
          - (aa) in a competent manner; and
          - (bb) in compliance with all applicable Federal, [State](/usc/47/1721.md?p=21), and local laws; and
      - (ii) if the applicant is an entity described in [subsection (b)(1)](#b-1), shall appropriate or otherwise unconditionally obligate from non-Federal sources funds that are necessary to meet the requirements of [subsection (e)](#e);
    - (E) discloses to the [Assistant Secretary](/usc/47/1721.md?p=5) the source and amount of other Federal, [State](/usc/47/1721.md?p=21), or outside funding sources from which the entity receives, or has applied for, funding for activities or projects to which the application relates; and
    - (F) provides—
      - (i) the assurances that are required under [subsection (f)](#f); and
      - (ii) an assurance that the entity shall follow such additional procedures as the [Assistant Secretary](/usc/47/1721.md?p=5) may require to ensure that grant funds are used and accounted for in an appropriate manner.
- (d) **Award of grants—**
  - (1) **Factors considered in award of grants—** In deciding whether to award a grant under the [Program](/usc/47/1608.md?p=9), the [Assistant Secretary](/usc/47/1721.md?p=5) shall, to the extent practicable, consider—
    - (A) whether an application shall, if approved—
      - (i) increase internet access and the [adoption of broadband](/usc/47/1721.md?p=1) among [covered populations](/usc/47/1721.md?p=8) to be served by the applicant; and
      - (ii) not result in unjust enrichment;
    - (B) the comparative geographic diversity of the application in relation to other eligible applications; and
    - (C) the extent to which an application may duplicate or conflict with another [program](/usc/47/1608.md?p=9).
  - (2) **Use of funds—**
    - (A) **In general—** In addition to the activities required under [subparagraph (B)](#d-2-B), an entity to which the [Assistant Secretary](/usc/47/1721.md?p=5) awards a grant under the [Program](/usc/47/1608.md?p=9) shall use the grant amounts to support not less than 1 of the following activities:
      - (i) To develop and implement [digital inclusion](/usc/47/1721.md?p=11) activities that benefit [covered populations](/usc/47/1721.md?p=8).
      - (ii) To facilitate the [adoption of broadband](/usc/47/1721.md?p=1) by [covered populations](/usc/47/1721.md?p=8) in order to provide educational and employment opportunities to those populations.
      - (iii) To implement, consistent with the purposes of this subchapter—
        - (I) training [programs](/usc/47/1608.md?p=9) for [covered populations](/usc/47/1721.md?p=8) that cover basic, advanced, and applied skills; or
        - (II) other [workforce development programs](/usc/47/1721.md?p=23).
      - (iv) To make available equipment, instrumentation, networking capability, hardware and software, or digital network technology for broadband services to [covered populations](/usc/47/1721.md?p=8) at low or no cost.
      - (v) To construct, upgrade, expend, or operate new or existing public access computing centers for [covered populations](/usc/47/1721.md?p=8) through [community anchor institutions](/usc/47/1721.md?p=6).
      - (vi) To undertake any other project and activity that the [Assistant Secretary](/usc/47/1721.md?p=5) finds to be consistent with the purposes for which the [Program](/usc/47/1608.md?p=9) is established.
    - (B) **Evaluation—**
      - (i) **In general—** An entity to which the [Assistant Secretary](/usc/47/1721.md?p=5) awards a grant under the [Program](/usc/47/1608.md?p=9) shall use not more than 10 percent of the grant amounts to measure and evaluate the activities supported with the grant amounts.
      - (ii) **Submission to Assistant Secretary—** An entity to which the [Assistant Secretary](/usc/47/1721.md?p=5) awards a grant under the [Program](/usc/47/1608.md?p=9) shall submit to the [Assistant Secretary](/usc/47/1721.md?p=5) each measurement and evaluation performed under [clause (i)](#d-2-B-i)—
        - (I) in a manner specified by the [Assistant Secretary](/usc/47/1721.md?p=5);
        - (II) not later than 15 months after the date on which the entity is awarded the grant amounts; and
        - (III) annually after the submission described in [subclause (II)](#d-2-B-ii-II) for any year in which the entity expends grant amounts.
    - (C) **Administrative costs—** An entity to which the [Assistant Secretary](/usc/47/1721.md?p=5) awards a grant under the [Program](/usc/47/1608.md?p=9) may use not more than 10 percent of the amount of the grant for administrative costs in carrying out any of the activities described in [subparagraph (A)](#d-2-A).
    - (D) **Time limitations—** With respect to a grant awarded to an entity under the [Program](/usc/47/1608.md?p=9), the entity—
      - (i) except as provided in [clause (ii)](#d-2-D-ii), shall expend the grant amounts during the 4-year period beginning on the date on which the entity is awarded the grant amounts; and
      - (ii) during the 1-year period beginning on the date that is 4 years after the date on which the entity is awarded the grant amounts, may continue to measure and evaluate the activities supported with the grant amounts, as required under [subparagraph (B)](#d-2-B).
- (e) **Federal share—**
  - (1) **In general—** Except as provided in [paragraph (2)](#e-2), the Federal share of any project for which the [Assistant Secretary](/usc/47/1721.md?p=5) awards a grant under the [Program](/usc/47/1608.md?p=9) may not exceed 90 percent.
  - (2) **Exception—** The [Assistant Secretary](/usc/47/1721.md?p=5) may grant a waiver with respect to the limitation on the Federal share of a project described in [paragraph (1)](#e-1) if—
    - (A) the applicant with respect to the project petitions the [Assistant Secretary](/usc/47/1721.md?p=5) for the waiver; and
    - (B) the [Assistant Secretary](/usc/47/1721.md?p=5) determines that the petition described in [subparagraph (A)](#e-2-A) demonstrates financial need.
- (f) **Assurances—** When applying for a grant under this section, an entity shall include in the application for that grant assurances that the entity shall—
  - (1) use any grant funds that the entity is awarded—
    - (A) in accordance with any applicable statute, regulation, and application procedure; and
    - (B) to the extent required under applicable law;
  - (2) adopt and use proper methods of administering any grant that the entity is awarded, including by—
    - (A) enforcing any obligation imposed under law on any agency, institution, organization, or other entity that is responsible for carrying out a [program](/usc/47/1608.md?p=9) to which the grant relates;
    - (B) correcting any deficiency in the operation of a [program](/usc/47/1608.md?p=9) to which the grant relates, as identified through an audit or another monitoring or evaluation procedure; and
    - (C) adopting written procedures for the receipt and resolution of complaints alleging a violation of law with respect to a [program](/usc/47/1608.md?p=9) to which the grant relates;
  - (3) cooperate with respect to any evaluation—
    - (A) of any [program](/usc/47/1608.md?p=9) that relates to a grant awarded to the entity; and
    - (B) that is carried out by or for the [Assistant Secretary](/usc/47/1721.md?p=5) or another Federal official;
  - (4) use fiscal control and fund accounting procedures that ensure the proper disbursement of, and accounting for, any Federal funds that the entity is awarded under the [Program](/usc/47/1608.md?p=9);
  - (5) submit to the [Assistant Secretary](/usc/47/1721.md?p=5) any reports that may be necessary to enable the [Assistant Secretary](/usc/47/1721.md?p=5) to perform the duties of the [Assistant Secretary](/usc/47/1721.md?p=5) under the [Program](/usc/47/1608.md?p=9); and
  - (6) maintain any records and provide any information to the [Assistant Secretary](/usc/47/1721.md?p=5), including those records, that the [Assistant Secretary](/usc/47/1721.md?p=5) determines is necessary to enable the [Assistant Secretary](/usc/47/1721.md?p=5) to perform the duties of the [Assistant Secretary](/usc/47/1721.md?p=5) under the [Program](/usc/47/1608.md?p=9).
- (g) **Deobligation or termination of grant—** In addition to other authority under applicable law, the [Assistant Secretary](/usc/47/1721.md?p=5) may—
  - (1) deobligate or terminate a grant awarded to an entity under this section if, after notice to the entity and opportunity for a hearing, the [Assistant Secretary](/usc/47/1721.md?p=5)—
    - (A) presents to the entity a rationale and supporting information that clearly demonstrates that—
      - (i) the grant funds are not being used in a manner that is consistent with the application with respect to the grant submitted by the entity under [subsection (c)](#c); and
      - (ii) the entity is not upholding assurances made by the entity to the [Assistant Secretary](/usc/47/1721.md?p=5) under [subsection (f)](#f); and
    - (B) determines that the grant is no longer necessary to achieve the original purpose for which Assistant[^1] Secretary awarded the grant; and
  - (2) with respect to any grant funds that the [Assistant Secretary](/usc/47/1721.md?p=5) deobligates or terminates under [paragraph (1)](#g-1), competitively award the grant funds to another applicant, consistent with the requirements of this section.
- (h) **Reporting and information requirements; internet disclosure—** The [Assistant Secretary](/usc/47/1721.md?p=5)—
  - (1) shall—
    - (A) require any entity to which the [Assistant Secretary](/usc/47/1721.md?p=5) awards a grant under the [Program](/usc/47/1608.md?p=9) to, for each year during the period described in [subsection (d)(2)(D)](#d-2-D) with respect to the grant, submit to the [Assistant Secretary](/usc/47/1721.md?p=5) a report, in a format specified by the [Assistant Secretary](/usc/47/1721.md?p=5), regarding—
      - (i) the amount of the grant;
      - (ii) the use by the entity of the grant amounts; and
      - (iii) the progress of the entity towards fulfilling the objectives for which the grant was awarded;
    - (B) establish mechanisms to ensure appropriate use of, and compliance with respect to all terms regarding, grant funds awarded under the [Program](/usc/47/1608.md?p=9);
    - (C) create and maintain a fully searchable database, which shall be accessible on the internet at no cost to the public, that contains, at a minimum—
      - (i) a list of each entity that has applied for a grant under the [Program](/usc/47/1608.md?p=9);
      - (ii) a description of each application described in [clause (i)](#h-1-C-i), including the proposed purpose of each grant described in that clause;
      - (iii) the status of each application described in [clause (i)](#h-1-C-i), including whether the [Assistant Secretary](/usc/47/1721.md?p=5) has awarded a grant with respect to the application and, if so, the amount of the grant;
      - (iv) each report submitted by an entity under [subparagraph (A)](#h-1-A); and
      - (v) any other information that is sufficient to allow the public to understand and monitor grants awarded under the [Program](/usc/47/1608.md?p=9); and
    - (D) ensure that any entity with respect to which an award is deobligated or terminated under [subsection (g)](#g) may, in a timely manner, appeal or otherwise challenge that deobligation or termination, as applicable; and
  - (2) may establish additional reporting and information requirements for any recipient of a grant under the [Program](/usc/47/1608.md?p=9).
- (i) **Supplement not supplant—** A grant awarded to an entity under the [Program](/usc/47/1608.md?p=9) shall supplement, not supplant, other Federal or [State](/usc/47/1721.md?p=21) funds that have been made available to the entity to carry out activities described in this section.
- (j) **Set asides—** From amounts made available in a fiscal year to carry out the [Program](/usc/47/1608.md?p=9), the [Assistant Secretary](/usc/47/1721.md?p=5) shall reserve—
  - (1) 5 percent for the implementation and administration of the [Program](/usc/47/1608.md?p=9), which shall include—
    - (A) providing technical support and assistance, including ensuring consistency in data reporting;
    - (B) providing assistance to entities to prepare the applications of those entities with respect to grants awarded under this section;
    - (C) developing the report required under [section 1725(a) of this title](/usc/47/1725.md?p=a); and
    - (D) conducting outreach to entities that may be eligible to be awarded a grant under the [Program](/usc/47/1608.md?p=9) regarding opportunities to apply for such a grant;
  - (2) 5 percent to award grants to, or enter into contracts or cooperative agreements with, [Indian Tribes](/usc/47/1721.md?p=16), Alaska Native entities, and Native Hawaiian organizations to allow those tribes, entities, and organizations to carry out the activities described in this section; and
  - (3) 1 percent to award grants to, or enter into contracts or cooperative agreements with, the [United States](/usc/47/38.md) Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the [United States](/usc/47/38.md) that is not a [State](/usc/47/1721.md?p=21) to enable those entities to carry out the activities described in this section.
- (k) **Rules—** The [Assistant Secretary](/usc/47/1721.md?p=5) may prescribe such rules as may be necessary to carry out this section.
- (l) **Authorization of appropriations—** There are authorized to be appropriated to carry out this section—
  - (1) $250,000,000 for each of the first 5 fiscal years in which funds are made available to carry out this section; and
  - (2) such sums as may be necessary for each fiscal year after the end of the 5-fiscal year period described in [paragraph (1)](#l-1).

## Footnotes

[^1]: So in original. Probably should be preceded by “the”.

## Source credit

(Pub. L. 117–58, div. F, title III, § 60305, Nov. 15, 2021, 135 Stat. 1222.)