NTIA-SDECGP-2024.pdf

NOTICE OF FUNDING OPPORTUNITY

STATE DIGITAL EQUITY CAPACITY GRANT PROGRAM

EXECUTIVE SUMMARY

A. Federal Awarding Agency Name

National Telecommunications and Information Administration (NTIA), U.S. Department of Commerce

B. Funding Opportunity Title

State Digital Equity Capacity Grant Program

C. Announcement Type

Initial

D. Funding Opportunity Number

NTIA-SDECGP-2024

E. Assistance Listing (CFDA Number)

11.032

F. Key Dates

Complete applications from States (including the 50 states, the District of Columbia, and the Commonwealth of Puerto Rico) must be received through the NTIA Grants Portal (https://grants.ntia.gov) no later than 11:59 p.m. Eastern Time (ET) on May 28, 2024.

Application materials are available at https://broadbandusa.ntia.doc.gov.

Complete applications from U.S. Territories (other than the Commonwealth of Puerto Rico) must be received through the NTIA Grants Portal (https://grants.ntia.gov) no later than 11:59 p.m.

Eastern Time (ET) on July 31, 2024.

The application window for Indian Tribes, Alaska Native entities, and Native Hawaiian organizations (“Native Entities”) will open September 25, 2024, and close on February 7, 2025. All Native Entity applications must be received through the NTIA Grants Portal (https://grants.ntia.gov), by email (digitalequity@ntia.gov), or by mail or courier no later than 11:59 p.m. Eastern Time (ET) on February 7, 2025.

https://grants.ntia.gov/ https://broadbandusa.ntia.doc.gov/ https://grants.ntia.gov/ https://grants.ntia.gov/ mailto:digitalequity@ntia.gov

NTIA expects to begin issuing awards to Eligible States pursuant to this Notice of Funding Opportunity (“NOFO”) no later than August 28, 2024. NTIA expects to make additional awards on a rolling basis.

G. Application Submission Address

For States and U.S. Territories, complete application packets, including the Digital Equity Plan of the State or Territory, must be submitted electronically through the NTIA Grants Portal (https://grants.ntia.gov). Applications or portions thereof submitted by a State or Territory through postal mail, courier, email, facsimile, or other means will not be accepted.

For Native Entities, complete applications must be submitted (1) electronically through the NTIA Grants Portal (https://grants.ntia.gov), (2) by email (digitalequity@ntia.gov), or (3) by mail or courier.

See Section II.C of this NOFO for detailed information concerning application submission requirements for States and U.S. Territories. See Section III.C of this NOFO for detailed information concerning application submission requirements for Native Entities.

H. Funding Opportunity Description

This Notice of Funding Opportunity (“NOFO”) solicits applications for the State Digital Equity Capacity Grant Program (“Capacity Grant Program” or “Program”), the second of three digital equity programs authorized by the Infrastructure Investment and Jobs Act of 2021, Division F, Title III, Public Law 117-58, 135 Stat. 429, 1209 (November 15, 2021) (“Infrastructure Act” or “IIJA”) also known as the (“Digital Equity Act” or “DE Act”). The Digital Equity Act appropriated $2.75 billion to be awarded by the Assistant Secretary of Commerce for Communications and Information (“Assistant Secretary”) to promote digital inclusion activities and achieve digital equity.

The Digital Equity Act consists of three funding programs: (1) the $60 million State Digital Equity Planning Grant Program; (2) the $1.44 billion State Digital Equity Capacity Grant Program; and (3) the $1.25 billion Competitive Grant Program. NTIA released the Notice of Funding Opportunity for the State Digital Equity Planning Grant Program (“Planning Grant Program”) on May 13, 2022, making funds available to States and Territories to develop State Digital Equity Plans (“Digital Equity Plans”). The Capacity Grant Program will provide funds to States and U.S. Territories to implement the State Digital Equity Plans developed pursuant to the State Digital Equity Planning Grant Program. The Digital Equity Plans identify the barriers to achieving digital equity faced by certain populations defined by the statute (i.e. “Covered Populations”), and include measurable objectives to promote: (1) the availability and affordability of access to broadband technology; (2) online accessibility and inclusivity of public resources and services; (3) digital literacy; (4) awareness of online privacy and cybersecurity;

and (5) the availability and affordability of consumer devices and technical support for those devices.

https://grants.ntia.gov/

In addition, this NOFO establishes a competitive process to make both State Digital Equity Planning Grant Program funds and State Digital Equity Capacity Grant Program funds available to Native Entities to carry out digital equity and inclusion activities consistent with the Digital Equity Act. These proposed projects must include measurable objectives and evaluation criteria as part of their program design and will likewise address barriers to digital equity and promote the availability and affordability of access to broadband technology, online accessibility and inclusivity of public resources and services, digital literacy, awareness of online privacy and cybersecurity, and the availability and affordability of consumer devices and technical support for those devices.

Because funding for States and U.S. Territories is based on a statutory allocation formula and funding for Native Entities will be determined through a separate competitive process, this NOFO is divided into sections to help clarify specific requirements applicable to different entities applying for funding. The procedures through which States and U.S. Territories can seek funding are outlined in Section II. Procedures for Native Entities to obtain funding are addressed in Section III. The remaining sections are common to both types of entities.

Recognizing that achieving digital equity for all people, including Indigenous peoples of the United States and Territories, is a matter of social and economic justice, this NOFO seeks to enable any entity that is awarded a grant under this Program to better understand, measure, and address systemic barriers to digital equity and, in collaboration with the communities most impacted, co-create the conditions necessary for long-lasting and meaningful change to ensure a sustainable future. Focusing investments on creating these conditions for change will allow entities awarded a grant under this Program to address the causes of socioeconomic disparities and will result in improved outcomes in health, education, economic stability, and quality of life among the Covered Populations.

I. Funding Instrument

Grant

J. Eligibility

Each State that has completed a Digital Equity Plan that meets the requirements of 47 U.S.C.

§1723(c) is eligible to apply for grants under the Capacity Grant Program to implement its Digital Equity Plan and to carry out digital inclusion activities. In addition, U.S. Territories that submit a Digital Equity Plan consistent with the obligations of their State Digital Equity Planning Grant award are eligible to apply for grants under the Capacity Grant Program to implement its Digital Equity Plan and to carry out digital inclusion activities. Finally, Native Entities, or a consortium of Native Entities, with the necessary authorizations described in Section III.B.1 of this NOFO, are eligible to apply for both Capacity Grant and Planning Grant funding to promote the objectives of digital equity and inclusion. See Section II.B.1 of this NOFO for the eligibility requirements of States and Territories. See Section III.B.1 for the eligibility requirements of Native Entities.

K. Anticipated Amounts

Grant awards to Eligible States will be based upon the statutory formula established in the Digital Equity Act and will depend on the number and characteristics of the States that apply.

Grant awards to the U.S. Territories will be made as an equal distribution of the territorial set aside provided for in 47 U.S.C. §1723(i)(3). Grant awards to Native Entities will be awarded on a competitive basis under the criteria outlined in Section III of this NOFO and will depend upon the number of applicants and the size of the proposals submitted.

Congress has appropriated $840,000,000 for grants under the State Digital Equity Capacity Grant Program through fiscal year 2024 ($240,000,000 for fiscal year 2022, $300,000,000 for fiscal year 2023, and $300,000,000 for fiscal year 2024). As statutorily required, no less than one (1) percent of the total amount of funding will be made available to Territories ($8,400,000) and no less than five (5) percent of the total amount of funding will be made available to Indian Tribes, Alaska Native entities, and Native Hawaiian organizations ($42,000,000). Congress also authorizes the Assistant Secretary to set aside, from amounts made available each fiscal year, funds for salaries and expenses, administration, and oversight, $1,000,000 of which must be transferred to the Office of Inspector General of the Department of Commerce for oversight.

After eliminating administrative costs and transfers, and set asides for U.S. Territories and Native Entities, $760,800,000 is being made available to Eligible States for federal financial assistance under the Capacity Grant Program.

In addition, $3,000,000 that was set aside for Native Entities under the State Digital Equity Planning Grant Program, but which could not be released due to oversubscription, as well as approximately $300,000 of unclaimed State Digital Equity Planning Grant Program funds will now be made available to Native Entities through this NOFO. In total, NTIA expects to make approximately $45,300,000 available for Digital Equity Planning and Capacity Grants to Native Entities.1 NTIA expects to make individual Digital Equity Capacity Grant Program awards to Native Entities within a range of $500,000 to $2,000,000. This funding range is not a required minimum or maximum, but Native Entities requesting funding for projects outside of this range must provide a reasonable explanation for the variance in their project size. Native Entities may also be included in State Digital Equity Plans.2

Future NOFOs are expected to make up to an additional $300,000,000 available for implementation of Digital Equity Plans and digital inclusion activities in each of fiscal years 2025 and 2026.

1 This amount is in addition to the approximately $3 billion previously made available through the Tribal Broadband Connectivity Programs which included funds for broadband use and adoption to address the digital divide on Tribal Lands. See, Tribal Broadband Connectivity Program Notice of Funding Opportunity.

2 See, e.g., 47 U.S.C. §1723(c)(1)(D)(iv).

https://broadbandusa.ntia.doc.gov/sites/default/files/2021-06/NTIA.Tribal%20Broadband%20Connectivity%20Program.Final_.OMB%20Cleared.pdf https://broadbandusa.ntia.doc.gov/sites/default/files/2021-06/NTIA.Tribal%20Broadband%20Connectivity%20Program.Final_.OMB%20Cleared.pdf

L. Cost Sharing/Matching

The Capacity Grant Program does not require cost sharing or matching, and NTIA will not give additional consideration during the evaluation process for applications proposing a non-federal cost-sharing contribution.

M. Notice of Funding Opportunity Summary

The following table provides a summary of key provisions within Sections II and III of this

NOFO.

States & U.S. Territories (Section II)

Native Entities (Section III)

Program Name

State Digital Equity Capacity Grant Program

State Digital Equity Capacity Grant Program

Eligible Entities

States (including D.C. and Puerto Rico) & U.S. Territories

Indian Tribes, Alaska Native entities, & Native Hawaiian organizations

Program Purpose

Implement Digital Equity Plans and carry out digital inclusion activities

Conduct digital equity planning and carry out digital equity and inclusion activities consistent with the Digital Equity Act

Amount of Total Funding Available

• $760,800,000 available for States (including D.C. and Puerto Rico)

• $8,400,000 available for U.S. Territories

$45,300,000, of which

• $3,300,000 is from the State Digital Equity Planning Grant Program and is for digital equity planning purposes, and

• $42,000,000 is from the State Digital Equity Capacity Grant Program and is for digital equity and inclusion activities

Allocation Approach

Formula Competitive

Expected Award Size Per Entity

• For States (including D.C. and Puerto Rico), see “Tentative State Award Allocation” table (Sec. II.A.4.b)

• For U.S. Territories, $2,100,000

$500,000 - $2,000,000

While Native Entities are not required to seek Planning Grant funding, any Planning Grant funding requests must be capped at seven and one-quarter (7.25) percent of the total funds requested.

FULL ANNOUNCEMENT TEXT

Table of Contents

I PROGRAM DESCRIPTION

A. Overview of the State Digital Equity Capacity Grant Program

B. Connections to the Broadband Equity, Access, and Deployment (BEAD) Program

C. Definitions

II. STATES AND U.S. TERRITORIES - APPLICATION REQUIREMENTS AND

AWARD INFORMATION

A. FEDERAL AWARD INFORMATION

1. Funding Availability

2. Period of Performance

3. Performance Measurement and Evaluation

4. Award Amounts

5. Type of Funding Instrument

B. ELIGIBILITY INFORMATION

1. Eligible Applicants

2. Cost Sharing or Matching

C. APPLICATION AND SUBMISSION INFORMATION

1. Address to Request Application Package

2. Content and Form of Applications

3. Funding Restrictions

4. Subgrantee Selection Process

5. Alternative Funding

6. Certifications Regarding Debarment and Suspension

7. System Award Management (SAM)

8. Submission Dates and Times

9. Intergovernmental Review

10. Material Representations and Public Disclosure

11. Other Submission Requirements

D. APPLICATION REVIEW INFORMATION

1. Overview

2. Initial Eligibility and Administrative Review

3. Merit Review

4. Award Process

5. Federal Awarding Agency Review of Risk Posed by Applicant

6. Anticipated Announcement and Award Dates

III. NATIVE ENTITIES – APPLICATION REQUIREMENTS AND AWARD

INFORMATION

A. FEDERAL AWARD INFORMATION

1. Funding Availability

2. Period of Performance

3. Performance Measurement and Evaluation

4. Award Amounts

5. Type of Funding Instrument

B. ELIGIBILITY INFORMATION

1. Eligible Applicants

2. Cost Sharing or Matching

C. APPLICATION AND SUBMISSION INFORMATION

1. Address to Request Application Package

2. Content and Form of Applications

3. Funding Restrictions

4. Certification Regarding Debarment and Suspension

5. System Award Management (SAM)

6. Submission Dates and Times

7. Material Representations and Public Disclosure

8. Other Submission Requirements

D. APPLICATION REVIEW INFORMATION

1. Initial Eligibility and Administrative Review

2. Merit Review

3. Programmatic Review

4. OICG Associate Administrator Review

5. Final Project Selection

6. Federal Awarding Agency Review of Risk Posed by Applicant

7. Anticipated Announcement and Award Dates

IV. FEDERAL AWARD ADMINISTRATION INFORMATION

A. Federal Award Notices

B. Notification to Unsuccessful Applicants

C. Retention of Unsuccessful Applications

D. Administrative and National Policy Requirements

1. Uniform Administrative Requirements, Cost Principles and Audit Requirements

2. Department of Commerce Financial Assistance Standard Terms and Conditions

3. Pre-Award Notification Requirements

4. Build America, Buy America Act Domestic Content Preference Requirements

5. Domestic Preference for Procurements

6. Contracting with Small and Minority Businesses, Women's Business Enterprises, and Labor Surplus Area Firms

7. Cybersecurity Best Practices

E. Reporting

1. Infrastructure Act Reporting Requirements (Annual Report)

2. Other Reporting Requirements

F. Recipient Integrity and Performance Matters

G. Audit Requirements

H. Federal Funding Accountability and Transparency Act of 2006

I. Public Database

V. FEDERAL AWARDING AGENCY CONTACTS

VI. OTHER INFORMATION

A. Transparency

B. Protected and Propriety Information

C. Funding Availability and Limitation of Liability

D. Third Party Beneficiaries

E. Waiver Authority

F. Paperwork Reduction Act

G. Transparency, Accountability, and Oversight Required

1. Generally

2. U.S. Department of Commerce Office of Inspector General (OIG)

3. Whistleblower Protection

H. Unauthorized Use of Funds

I. PROGRAM DESCRIPTION

NTIA issues this Notice of Funding Opportunity (“NOFO”) to describe the requirements under which it will award grants for the State Digital Equity Capacity Grant Program (“Capacity Grant Program” or “Program”), authorized by § 60304(d) of the Infrastructure Investment and Jobs Act of 2021, Division F, Title III, Public Law 117-58, 135 Stat. 429, 1209 (November 15, 2021) (“Infrastructure Act” or “IIJA”), also known as the Digital Equity Act of 2021 (“Digital Equity Act” or “DE Act”).3 The Capacity Grant Program provides funding for the implementation of Digital Equity Plans created pursuant to 47 U.S.C. §1723(c), including the promotion of digital inclusion activities.

A. Overview of the State Digital Equity Capacity Grant Program

Broadband connections and digital literacy are increasingly critical to individual participation in the society, economy, and civic institutions of the United States.4 Broadband connections expand access to health care and essential services, education, and jobs. High-speed Internet access is not a luxury, but a necessity, for all people of the United States, regardless of their age, race, or income, irrespective of where they live, what languages they speak, what resources they have at their disposal, their disability status, and what specific challenges they may face in their daily lives.

Unfortunately, not all Americans have been afforded access to broadband services on an equal basis. Many Americans live in locations where no service is available, the speed or quality of the service is unreliable, and/or the offering available is unaffordable. Even where broadband service is available, many on the wrong side of the digital divide lack the equipment, digital skills training, financial assistance, and other resources necessary to realize the Internet’s full potential. Digital exclusion carries a high societal and economic cost. Lack of accessible broadband services, digital skills, and equipment materially harms the opportunity of an individual to achieve economic success, educational advancement, positive health outcomes, social inclusion, and civic engagement. The Digital Equity Act identifies those groups most vulnerable to this digital exclusion and creates a program to address their needs (the “Covered Populations”).5 The DE Act recognizes that individuals that live in households near the poverty

3 47 U.S.C. §1701 et seq.

4 47 U.S.C. §1722.

5 47 U.S.C. §1721(8). The “Covered Populations” are: (a) individuals who live in covered households (defined as households with income of not more than 150% of the poverty level); (b) aging individuals;

(c) incarcerated individuals (as defined by the State or Territory), other than individuals who are incarcerated in a Federal correctional facility; (d) veterans; (e) individuals with disabilities; (f) individuals with a language barrier, including individuals who are English learners and have low levels of literacy;

(g) individuals who are members of a racial or ethnic minority group; and (h) individuals who primarily reside in a rural area.

level, aging individuals, incarcerated individuals, veterans, individuals with disabilities, individuals with a language barrier, members of racial or ethnic minority groups, and individuals living in rural areas all face barriers to digital inclusion that warrant additional efforts to ensure digital equity is achieved.

Achieving digital equity will strengthen the American economy. When members of the Covered Populations are excluded from the digital economy, they lose job opportunities and access to educational resources and workforce development opportunities. As the job market becomes increasingly digital, those without digital skills and access will face increasing challenges in securing well-paying employment. This lack of digital literacy can also reduce digital entrepreneurship and cost the United States significant opportunities for new business development and economic activity. Digital exclusion can also prevent individuals from accessing financial services, managing their finances efficiently, and building wealth – exacerbating existing wealth and income gaps. On an international scale, digital exclusion can reduce America’s competitiveness in the global economy.

Achieving digital equity will likewise improve personal welfare and promote civic engagement among the Covered Populations. Lack of access to telehealth services, which rely on digital technologies and have become vital in providing healthcare access, is leading to health disparities and increased healthcare costs, particularly in rural areas. The inability of members of the Covered Populations to access online services also undermines the ability of the government to provide more efficient services and share critical information and proceedings with the public.

Expanding digital equity will enable members of the Covered Populations to access information and government services online and empower these individuals to engage in civic activities, such as voting, advocacy, and community involvement, contributing to a more participatory democracy.

Recognizing the devastating impact of digital exclusion, President Biden made a commitment that every household in America will have access to affordable, reliable, high-speed Internet, and the resources necessary to realize the Internet’s full potential. Passed on a bipartisan basis in both chambers of Congress, the Digital Equity Act of 2021 provides $2.75 billion to address digital inclusion and advance digital equity. The law charges NTIA – the President’s principal advisor on telecommunications and information policy matters, housed within the United States Department of Commerce (DOC) – with administering these programs.

The Digital Equity Act creates a carefully structured process to address the core concerns of digital equity and digital inclusion for the members of the Covered Populations. The first step was the creation of detailed Digital Equity Plans. NTIA launched the State Digital Equity Planning Grant Program (“Planning Grant Program”) on May 13, 2022, awarding $53.7 million to 50 states, the District of Columbia, the Commonwealth of Puerto Rico, and four U.S.

Territories, to develop Digital Equity Plans which identify the barriers to digital adoption for each of the eight Covered Populations identified in the statute. With this funding, all fifty States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa and the Commonwealth of the Northern Mariana Islands have for the first time developed Digital Equity Plans designed to identify the barriers to digital equity faced by the Covered Populations, establish measurable objectives for documenting and promoting the availability and affordability of access to fixed and wireless broadband services, online accessibility and inclusivity of public resources and services, digital literacy and skills, awareness of cybersecurity and protection of online privacy, and the availability of affordable consumer devices.

This Notice of Funding Opportunity will make funds available to begin implementation of these State6 and U.S. Territory7 Digital Equity Plans and will, in addition, empower Indian Tribes, Alaska Native entities, and Native Hawaiian organizations (“Native Entities”) to address digital equity and inclusion consistent with the purposes of the Digital Equity Act.

States and U.S. Territories will receive funding to adopt sustainable, long-term programs that address digital equity through defined projects and activities, consistent with their Digital Equity Plans, that will have a measurable impact on the availability, affordability, and adoption of broadband technology, the accessibility and inclusivity of public resources, digital literacy and skills, awareness of the importance of cybersecurity, online privacy, and the availability and affordability of consumer devices. Native Entities will be able to undertake both planning and implementation projects to further digital equity through a competitive grant program with performance goals similar in scope to those outlined for States and Territories, including availability, affordability, and adoption of broadband technology, the accessibility and inclusivity of public resources, digital literacy and skills, cybersecurity, online privacy, and the availability and affordability of consumer devices.

As result of these programs, the DE Act will ensure that all Americans are able to benefit from the IIJA investment in broadband infrastructure. The success of the States and Territories in meeting these goals will be tracked through the reporting requirements on the applicable performance metrics outlined in Section II.A.3 below. The success of the Native Entities in meeting these goals will be tracked through the reporting requirements on the applicable performance metrics outlined in Section III.A.3 below. Recognizing that it is essential to ensure that Digital Equity Plans remain relevant, effective, and aligned with the changing community needs and advancements in technology, this Program will also allow States and Territories to utilize up to twenty (20) percent of their funds to update and maintain their Digital Equity Plans during the period of performance of a Capacity Grant Program award.

Digital equity is a multi-faceted issue that requires a “whole of government” approach to ensure that the various federal agencies are working together to create a more inclusive and equitable landscape for all Americans. This allows for the development of holistic solutions that address

6 As defined by the Digital Equity Act, and as used in this NOFO, the term “State” means any State of the United States; the District of Columbia; and the Commonwealth of Puerto Rico. 47 U.S.C. §1721(21).

7 The Digital Equity Act establishes a set aside for the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the United States that is not a State (“U.S. Territory(ies)” or “Territory(ies)”). 47 U.S.C. §1723(i).

the root causes of digital disparities, such as lack of Internet access, digital skills, and affordability. Recognizing that one program alone cannot address the challenges to digital equity and inclusion that face the United States, the Digital Equity Act directs NTIA to engage in a cross-government consultation process to ensure that the Program complements and enhances, and does not conflict with, other federal broadband initiatives and programs. NTIA has launched a robust interagency coordination effort, receiving input from nine (9) agencies and the Federal Communications Commission, documenting the programs available to serve members of the Covered Populations, and discussing means by which these programs can be integrated into the Digital Equity Plans of States and Territories. NTIA will use this information to enhance the value of the Capacity Grant Program and ensure the United States derives the maximum benefit from this investment in digital equity.

This NOFO is divided into sections to help clarify specific requirements applicable to different entities applying for funding. The procedures through which States and U.S. Territories can seek funding are outlined in Section II. Procedures for Native Entities to obtain funding are addressed in Section III. The remaining sections are common to both types of entities.

B. Connections to the Broadband Equity, Access, and Deployment (BEAD) Program

The Digital Equity Act of 2021 is closely tied to the broader infrastructure deployment goals of the Broadband Equity, Access, and Deployment (BEAD) Program. The BEAD Program is an historic $42.5 billion investment in grants to States and U.S. Territories for broadband planning, deployment, mapping, equity, adoption, and meaningful use projects. The BEAD Program includes a requirement that recipients submit a Five-Year Action Plan and an Initial Proposal, each of which must include descriptions of the recipient’s plans to advance digital equity and inclusion.

Collaboration and coordination between the implementation of a State or Territory’s Digital Equity Plan and the State or Territory’s Five-Year Action Plan under BEAD are essential to maximize the impact of both initiatives, thereby ensuring that the resources devoted to each program are working in a complementary and non-duplicative manner. As noted in the DE Planning Grant NOFO, States and Territories should at a minimum establish formal and direct communications and collaboration pathways between the teams that remain in place throughout the entire implementation process. This will be particularly important to reduce the burden and confusion on community stakeholders when fulfilling the local coordination, outreach, and stakeholder engagement requirements of both programs. Similarly, Native Entities should ensure their projects are coordinated with other broadband projects, such as those funded by the Tribal Broadband Connectivity Program (“TBCP”).

C. Definitions

(1) Assistant Secretary: The term “Assistant Secretary” means the Assistant Secretary of Commerce for Communications and Information or the individual who holds any successor position.

(2) Administering Entity: The term “Administering Entity” refers to the entity selected by the governor (or equivalent official) of each State to administer the State Digital Equity Planning and Capacity Grant Programs. The entity selected for the purposes of the Planning Grant Program must also administer the State Capacity Grant Program, unless the governor (or equivalent official) selects a new entity to undertake all the responsibilities described below.

The administering entity shall—

1. Serve as the recipient of, and administering agent for, any grant awarded to a State under this Program;

2. Develop, implement, oversee, and, as applicable, update the State Digital Equity Plan for the State;

3. Make subgrants to any entity described in 47 U.S.C. §1723(c)(1)(D) of the Infrastructure Act that is located in the State in support of:

a. The State Digital Equity Plan for the State; and

b. Digital inclusion activities in the State generally; and

4. Serve as—

a. An advocate for digital equity policy and digital inclusion activities; and

b. A repository of best practice materials regarding the policies and activities described in clause (a).

An Administering Entity must have demonstrated a capacity to administer the Program on a statewide level, and may be any of the following:

1. The State, a political subdivision, agency, or instrumentality of the State, an Indian Tribe located in the State, an Alaska Native entity located in the State, or a Native Hawaiian organization located in the State;

2. A foundation, corporation, institution, association, or coalition that is—

a. A not-for-profit entity;

b. Providing services in the State; and

c. Not a school;

3. A community anchor institution, other than a school, that is located in the State;

4. A local educational agency that is located in the State;

5. An entity located in the State that carries out a workforce development program;

6. An agency of the State that is responsible for administering or supervising adult education and literacy activities in the State;

7. A public or multi-family housing authority that is located in the State; or

8. A partnership between any of the previously listed entities.

(3) Administering Organization: The term “Administering Organization” means the organization selected by the governor (or equivalent official) of a U.S. Territory to administer a State Digital Equity Capacity Grant Program award. The organization selected by the U.S. Territory for the purposes of the State Digital Equity Planning Grant Program must also administer the State Digital Equity Capacity Grant Program, unless the governor (or equivalent official) selects a new entity to serve in this role.

(4) Aging Individual: The term “aging individual” means an individual who is 60 years of age or older.

(5) Alaska Native Entity: The term “Alaska Native entity” will refer to a tribally controlled entity in Alaska whose purpose or mission is to represent or advance the interests of one or more native Alaskan communities. This will include, but will not be limited to, subsidiary organizations of an Indian Tribe; entities that receive federal funding due to their status as an Indian or Native organization; and the Alaska Native Regional Nonprofit Organizations created to administer social, educational, and health services for Alaska Native people in their region.

(6) Commission: The term “Commission” refers to the Federal Communications Commission.

(7) Community Anchor Institution: The term “community anchor institution” means a public school, a public or multi-family housing authority, a library, a medical or healthcare provider, a community college or other institution of higher education, a State or Territory library agency, and any other nonprofit or governmental community support organization.

(8) Covered Household: The term “covered household” means a household, the income of which for the most recently completed year is not more than 150 percent of an amount equal to the poverty level, as determined by using criteria of poverty established by the Bureau of the Census.

(9) Covered Populations: The term “Covered Populations” means:

1. Individuals who live in covered households;

2. Aging individuals;

3. Incarcerated individuals (as defined by the State or Territory), other than individuals who are incarcerated in a federal correctional facility;

4. Veterans;

5. Individuals with disabilities;

6. Individuals with a language barrier, including individuals who—

a. Are English learners; and

b. Have low levels of literacy;

7. Individuals who are members of a racial or ethnic minority group; and

8. Individuals who primarily reside in a rural area.

(10) Digital Equity: The term “digital equity” means the condition in which individuals and communities have the information technology capacity that is needed for full participation in the society and economy of the United States.

(11) Digital Inclusion: The term “digital inclusion” –

1. Means the activities that are necessary to ensure that all individuals in the United States have access to, and the use of, affordable information and communication technologies, such as—

a. Reliable fixed and wireless broadband internet service;

b. Internet-enabled devices that meet the needs of the user; and

c. Applications and online content designed to enable and encourage self-sufficiency, participation, and collaboration; and

2. Includes—

a. Obtaining access to digital literacy training;

b. The provision of quality technical support; and

c. Obtaining basic awareness of measures to ensure online privacy and cybersecurity.

(12) Digital Literacy: The term “digital literacy” means the skills associated with using technology to enable users to find, evaluate, organize, create, and communicate information.

(13) Disability: The term “disability” means, with respect to an individual—

1. A physical or mental impairment that substantially limits one or more major life activities of such individual;

2. A record of such an impairment; or

3. Being regarded as having such an impairment.

(14) Eligible State: The term “Eligible State” means a State with respect to which the Assistant Secretary has approved an application submitted to the Assistant Secretary under this NOFO, including a State Digital Equity Plan developed by the State under 47 U.S.C. §1723(c).

(15) Indian Tribe: The term “Indian Tribe” means any Indian tribe, band, nation, or other organized group or community (i.e., Tribal Organizations), including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act, 43 U.S.C. § 1601 et seq., which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

(16) Native Hawaiian Organization (NHO): An organization that is registered with the U.S.

Department of the Interior’s Office of Native Hawaiian Relations and Hawaiian Homes

Commission Act Beneficiary Associations and Homestead Associations, as defined under 43 C.F.R. §§ 47.10 and 48.6, or is the Department of Hawaiian Home Lands.

(17) Native Entity: As used in this NOFO, the term “Native Entity” refers to Indian Tribes, Alaska Native entities, and Native Hawaiian organizations as referenced in 47 U.S.C. 1723(i)(2) and that meet the eligibility criteria outlined in Section III.B.1 of this NOFO.

(18) Rural Area: The term “rural area” means any area other than –

1. A city or town that has a population of greater than 50,000 inhabitants;

2. Any urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants; and

3. In the case of a grant or direct loan, a city, town, or incorporated area that has a population of greater than 20,000 inhabitants.

(19) State: The term “State” means:

1. any State of the United States;

2. the District of Columbia; and

3. the Commonwealth of Puerto Rico.

(20) Tribal Organization: The term “Tribal Organization” means the recognized governing body of any Indian Tribe; any legally established organization of Indians which is controlled, sanctioned, or chartered by such governing body or which is democratically elected by the adult members of the Indian community to be served by such organization and which includes the maximum participation of Indians in all phases of its activities: provided, that in any case where a contract is let or grant made to an organization to perform services benefiting more than one Indian tribe, the approval of each such Indian tribe shall be a prerequisite to the letting or making of such contract or grant.

(21) U.S. Territory: The term “U.S. Territory,” “U.S. Territories” or “Territory(ies)” means the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the United States that is not a State.

(22) Veteran: The term “veteran” means a person who served in the active military, naval, air, or space service, and who was discharged or released therefrom under conditions other than dishonorable.

II. STATES AND U.S. TERRITORIES - APPLICATION REQUIREMENTS AND

AWARD INFORMATION

This Section provides detailed information for States and U.S. Territories regarding federal award information, eligibility, the application and submission process for the Capacity Grant Program, and the review criteria to be used for these awards. Information for Native Entities regarding these subjects can be found in Section III of this NOFO.

A. FEDERAL AWARD INFORMATION

1. Funding Availability

To fund grants under the State Digital Equity Capacity Grant Program, Congress appropriated $840,000,000 for fiscal years 2022 through 2024 ($240,000,000 for fiscal year 2022, $300,000,000 for fiscal year 2023, and $300,000,000 for fiscal year 2024).8

47 U.S.C. §1723(i)(3) requires NTIA to set aside not less than one (1) percent of the total funds appropriated for each fiscal year “to award grants to, or enter into contracts or cooperative agreements with, the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the United States that is not a State.” Accordingly, NTIA has set aside $8,400,000 for grants to the U.S. Territories to satisfy the Territorial set aside requirement of fiscal years 2022 through 2024.

47 U.S.C. §1723(i)(2) requires NTIA to set aside not less than five (5) percent of the total funds appropriated for each fiscal year “to award grants to, or enter into contracts or cooperative agreements with, Indian Tribes, Alaska Native entities, and Native Hawaiian organizations.”

Accordingly, NTIA has set aside $42,000,000 for grants to Native Entities to satisfy the Native Entity set aside requirement for the fiscal years 2022 through 2024.9 As discussed in Section III.A.1, an additional $3,000,000 will be made available to Native Entities under the Digital Equity Planning Grant Program, as well as approximately $300,000 in unclaimed funds from the Planning Grant Program, for a total funding opportunity of approximately $45,300,000 under this NOFO.

8 Because both 47 U.S.C. §1721(14)(B) and 47 U.S.C.§1723(d)(2)(B) require the completion of a State Digital Equity Plan before an Eligible State may apply for a State Digital Equity Capacity Grant, the State Digital Equity Capacity Grant Program could not be made available in 2022 and 2023.

9 In 2022, Congress appropriated $60,000,000 for the State Digital Equity Planning Grant Program and $240 million for the State Digital Equity Capacity Grant Program. The Digital Equity Planning Grant NOFO applied the required set aside of 1% for U.S. Territories and 5% for Native Entities to the $60,000,000 Planning Grant appropriation for 2022. Through this NOFO, NTIA now sets aside the same percentages for the remaining $240,000,000 appropriated in 2022, thus satisfying the requirement of 47 U.S.C. §1723(i) that NTIA set aside funds from the total amounts made available in a fiscal year.

Congress has also permitted the Assistant Secretary to set aside from amounts appropriated for each fiscal year, funds for salaries and expenses, administration, and oversight, $1,000,000 of which must be transferred to the Office of Inspector General of the Department of Commerce for each fiscal year. NTIA has set aside $28,800,000 for administrative and transfer costs of the State Digital Equity Capacity Program.

After accounting for administrative expenses, including transfers to the Department of Commerce Office of Inspector General, set asides for U.S. Territories, and set asides for Native Entities, NTIA will make available $760,800,000 for States to be allocated as required by 47 U.S.C. §1723(d)(3)(A)(i) and Section II.A.4 of this NOFO. Subject to the availability of funding, future NOFOs are expected to make up to an additional $300,000,000 available for implementation of Digital Equity Plans and digital inclusion activities in each of fiscal years 2025 and 2026.

2. Period of Performance

As established in 47 U.S.C. §1723(d)(3)(B), Eligible States “shall expend the grant funds during the 5-year period beginning on the date on which the Eligible State is awarded grant funds.”10 Under the terms of this NOFO, U.S. Territories will likewise be required to expend the grant funds during the 5-year period beginning on the date on which the entity is awarded grant funds.11

3. Performance Measurement and Evaluation

Capacity Grant recipients and subrecipients are required to incorporate program measurement and evaluation activities as a part of their program design and implementation. These activities must include documentation of the State or Territory’s Digital Equity Plan implementation efforts and the progress made toward meeting the measurable objectives identified in those Digital Equity Plans, including the success of specific funded projects in meeting the performance objectives of the Program. States and Territories must protect personally identifiable information as required by 2 C.F.R. §200.303(e) and provide protection of human subjects as required by 15 C.F.R. Part 27.

Information collected must include the following data points:

a. Number of Covered Population(s) served;

b. Number of people served within each Covered Population;

c. Total number of people served;

10 The five-year period begins on the first day of the period of performance identified in the grant agreement.

11 Id.

d. Number of programs implemented by type;

e. Anecdotal/personal testimony demonstrating the positive impact of the Program;

f. Quantifiable evidence of progress toward the measurable objectives identified in the

Digital Equity Plan;

g. Impact on the State or Territory’s goals regarding:

i. Economic and workforce development outcomes;

ii. Educational outcomes;

iii. Health outcomes;

iv. Civic and social engagement; and

v. Delivery of essential services.

At the end of the period of performance, a State or Territory receiving funds under the Capacity Grant Program must submit an assessment of the effectiveness of the programs along with the results, protocols, and instruments used to collect the above data to NTIA. All program evaluation materials must be submitted in accordance with the terms and conditions of the subject grant award and no later than the final award closeout and may be posted publicly on NTIA’s website.

4. Award Amounts

Funding amounts for Eligible States will be determined pursuant to the statutory formula set forth at 47 U.S.C. §1723(d)(3)(A)(i) and this NOFO. U.S. Territories will receive equal shares of the Capacity Grant Program funding set aside for U.S. Territories consistent with 47 U.S.C.

§1723(i)(3).

a. Statutory Award Formula for States

Pursuant to §1723(d)(3)(A)(i) of the Digital Equity Act, the amount awarded to each Eligible State in a given fiscal year will be calculated by applying a formula in which:

i. fifty (50) percent of the total grant amount is based on the population of the Eligible State in proportion to the total population of all Eligible States;

ii. twenty-five (25) percent of the total grant amount is based on the number of individuals in the Eligible State who are members of the Covered Populations, in proportion to the total number of individuals in all Eligible States who are members of the Covered Populations; and

iii. twenty-five (25) percent of the total grant amount is based on the comparative lack of availability and adoption of broadband in the Eligible State relative to all Eligible States, as determined by data collected from the annual inquiry of the Federal Communications Commission pursuant to Section 706(b) of the

Telecommunications Act of 1996,12 the American Community Survey, NTIA Internet Use Survey, and any other source that the Assistant Secretary, after appropriate notice and opportunity for public comment, determines to be appropriate.

In the event that certain data on broadband availability or adoption are unavailable for the Commonwealth of Puerto Rico during a given fiscal year, the Assistant Secretary shall use the median value among all Eligible States for each affected factor in the formula and assign it to Puerto Rico for the purposes of making the calculations for that fiscal year.13

The capacity grant amount awarded to any Eligible State in a given fiscal year must not be less than one-half (0.5) percent of the total amount made available to award Capacity Grants to Eligible States during that fiscal year.14 Additionally, if there are amounts remaining available to NTIA after awarding the Digital Equity Capacity Grants to States in a given fiscal year, NTIA shall distribute those amounts to Eligible States to which NTIA has awarded Digital Equity Capacity Grants in accordance with the formula described at 47 U.S.C. §1723(d)(3)(A)(i). If additional Digital Equity Capacity Grant funds remain unclaimed following this distribution (for example, if one or more States decline the extra funds), the Assistant Secretary will add the remaining balance to the funds set aside for U.S. Territories and/or Native Entities.

After reviewing applications and determining which States are eligible to receive Capacity Grants, NTIA will apply the funding formula as detailed in Appendix A. NTIA and the U.S.

Census Bureau have collaborated to create the “Digital Equity Act Population Viewer,” which shows Covered Population totals calculated by the Census Bureau for each state, alongside the other factors used as inputs into the funding formula. The Digital Equity Act Population Viewer can be accessed at https://www.census.gov/data/data-tools/digital-equity-act-population.html.

12 47 U.S.C. §1302(b).

13 47 U.S.C. §1723(d)(3)(A)(iv).

14 47 U.S.C. §1723(d)(3)(A)(ii).

https://www.census.gov/data/data-tools/digital-equity-act-population.html

b. Tentative State Award Allocation Amount

Tentative award allocation amounts per State, assuming that each State seeks and receives Digital Equity Capacity Grant funds, are as follows:

State Amount State Amount

Alabama $13,702,566.00 Montana $6,938,534.64 Alaska $5,631,769.64 Nebraska $6,500,627.76 Arizona $16,170,760.44 Nevada $9,200,546.13 Arkansas $10,161,429.01 New Hampshire $4,942,018.62

California $70,226,453.82 New Jersey $18,094,857.62 Colorado $12,368,261.03 New Mexico $8,673,975.84 Connecticut $9,183,114.07 New York $36,984,641.81 Delaware $4,816,482.10 North Carolina $22,456,097.01

District of Columbia $3,804,000.00 North Dakota $4,549,772.25 Florida $41,748,794.74 Ohio $23,291,991.74 Georgia $22,455,639.68 Oklahoma $11,233,311.64 Hawaii $6,017,160.03 Oregon $9,947,586.17

Idaho $6,305,226.45 Pennsylvania $25,508,473.61 Illinois $23,732,912.78 Puerto Rico $9,807,187.39 Indiana $15,096,770.19 Rhode Island $4,540,059.53 Iowa $8,442,129.37 South Carolina $12,846,583.30

Kansas $8,229,246.17 South Dakota $5,010,234.08 Kentucky $12,123,531.39 Tennessee $15,814,288.00 Louisiana $12,727,887.98 Texas $55,641,147.86 Maine $5,784,349.60 Utah $7,795,149.91

Maryland $13,427,134.17 Vermont $5,299,150.18 Massachusetts $14,133,924.00 Virginia $18,330,732.47 Michigan $20,585,775.60 Washington $15,983,291.58 Minnesota $12,033,288.01 West Virginia $9,011,588.00

Mississippi $10,752,090.73 Wisconsin $13,248,029.83 Missouri $14,237,940.09 Wyoming $5,251,485.99

NTIA emphasizes that these allocations are tentative, and that a State’s final allocation could be higher or lower than the amount listed here, depending on factors including the number of States that elect to participate in the program and the results of any challenges to this allocation.

c. Allocation Challenge Process for State Awards

As provided in the Digital…