Judge Blocks Trump’s Attempt to Cancel Digital Equity Grants While Striking Racial Funding Criteria

U.S. District Judge John D. Bates delivered a split ruling on the Digital Equity Act, preserving the $2.75 billion grant program aimed at expanding internet skills while striking the statutory requirement to allocate money based on race or ethnicity. The decision blocks President Donald Trump’s effort to unilaterally cancel the program, yet it deems the racial component unconstitutional. Federal attorneys announced that the competitive grants will be reinstated without race-based provisions, with a new application expected in December.

The National Digital Inclusion Alliance, which sued after being denied a nearly $26 million award, now must reapply alongside more than a dozen other organizations, including the Cherokee Nation, El Centro Hispano and Portland Community College. Rural groups warn the funding pause jeopardizes digital-navigator programs that help unemployed, homeless and senior residents access online job listings, housing and health services. The case highlights the broader political clash over “woke” initiatives and the federal role in broadband equity.