Sec. 31121. State Digital Equity Capacity Grant Program
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The Assistant Secretary shall establish in the Office the State Digital Equity Capacity Grant Program (referred to in this section as the Program )— the purpose of which is to promote the achievement of digital equity, support digital inclusion activities, and build capacity for efforts by States relating to the adoption of broadband service by residents of those States; through which the Assistant Secretary shall make grants to States in accordance with the requirements of this section; and which shall ensure that States have the capacity to promote the achievement of digital equity and support digital inclusion activities.
In establishing the Program under paragraph (1), the Assistant Secretary shall— consult with— the Secretary of Agriculture; the Secretary of Housing and Urban Development; the Secretary of Education; the Secretary of Labor; the Secretary of Health and Human Services; the Secretary of Veterans Affairs; the Secretary of the Interior; the Assistant Secretary for Indian Affairs of the Department of the Interior; the Commission; the Federal Trade Commission; the Director of the Institute of Museum and Library Services; the Administrator of the Small Business Administration; the Federal Cochairman of the Appalachian Regional Commission; and the head of any other Federal agency that the Assistant Secretary determines to be appropriate; and ensure that the Program complements and enhances, and does not conflict with, other Federal broadband service support programs and Universal Service Fund programs.
In establishing the Program under paragraph (1), the Assistant Secretary shall conduct robust, interactive, pre-decisional, transparent consultation with Indian Tribes and Native Hawaiian organizations. The governor (or equivalent official) of a State that wishes to be awarded a grant under this section shall, from among entities that are eligible under paragraph (2), select an administering entity for that State, which shall— serve as the recipient of, and administering agent for, any grant awarded to the State under this section; develop, implement, and oversee the State Digital Equity Plan for the State described in subsection (c); make subgrants to any of the entities described in clauses
(i)through
(xi)of subsection (c)(1)(D) that is located in the State in support of— the State Digital Equity Plan for the State; and digital inclusion activities in the State generally; and serve as— an advocate for digital equity policies and digital inclusion activities; and a repository of best practice materials regarding the policies and activities described in clause (i). Any of the following entities may serve as the administering entity for a State for the purposes of this section if the entity has demonstrated a capacity to administer the Program on a statewide level: The State. A political subdivision, agency, or instrumentality of the State. An Indian Tribe located in the State, a tribally designated entity located in the State, or a Native Hawaiian organization located in the State. A State that wishes to be awarded a grant under subsection
(d)shall develop a State Digital Equity Plan for the State, which shall include— an identification of the barriers to digital equity faced by covered populations in the State; measurable objectives for documenting and promoting, among each group described in subparagraphs
(A)through
(H)of section 31001(6) located in that State— the availability of, and affordability of access to, broadband service and technology needed for the use of broadband service; public awareness of such availability and affordability and of subsidies available to increase such affordability (including subsidies available through the Lifeline program of the Commission), including objectives to— inform Medicaid enrollees and SNAP participants, and organizations that serve Medicaid enrollees and SNAP participants, of potential eligibility for the Lifeline program; and provide Medicaid enrollees and SNAP participants with information about the Lifeline program, including— how to apply for the Lifeline program; and a description of the prohibition on more than one subscriber in each household receiving a service provided under the Lifeline program; the online accessibility and inclusivity of public resources and services; digital literacy; awareness of, and the use of, measures to secure the online privacy of, and cybersecurity with respect to, an individual; and the availability and affordability of consumer devices and technical support for those devices; an assessment of how the objectives described in subparagraph
(B)will impact and interact with the State’s— economic and workforce development goals, plans, and outcomes; educational outcomes; health outcomes; civic and social engagement; and delivery of other essential services; in order to achieve the objectives described in subparagraph (B), a description of how the State plans to collaborate with key stakeholders in the State, which may include— anchor institutions; county and municipal governments; local educational agencies; where applicable, Indian Tribes, tribally designated entities, or Native Hawaiian organizations; nonprofit organizations; organizations that represent— individuals with disabilities, including organizations that represent children with disabilities; aging individuals; individuals with a language barrier, including individuals who— are English learners; or have low levels of literacy; veterans; individuals residing in rural areas; and incarcerated individuals in that State, other than individuals who are incarcerated in a Federal correctional facility (including a private facility operated under contract with the Federal Government); civil rights organizations; entities that carry out workforce development programs; agencies of the State that are responsible for administering or supervising adult education and literacy activities in the State; public housing agencies whose jurisdictions are located in the State; and a consortium of any of the entities described in clauses
(i)through (x); and a list of organizations with which the administering entity for the State collaborated in developing and implementing the Plan. The administering entity for a State shall make the State Digital Equity Plan of the State available for public comment for a period of not less than 30 days before the date on which the State submits an application to the Assistant Secretary under subsection (d)(2). The administering entity for a State shall, with respect to an application submitted to the Assistant Secretary under subsection (d)(2)— before submitting the application— consider all comments received during the comment period described in subparagraph
(A)with respect to the application (referred to in this subparagraph as the comment period ); and make any changes to the plan that the administering entity determines to be appropriate; and when submitting the application— describe any changes pursued by the administering entity in response to comments received during the comment period; and include a written response to each comment received during the comment period. Beginning in the first fiscal year that begins after the date of the enactment of this Act, the Assistant Secretary shall, in accordance with the requirements of this paragraph, award planning grants to States for the purpose of developing the State Digital Equity Plans of those States under this subsection. In order to be awarded a planning grant under this paragraph, a State— shall submit to the Assistant Secretary an application under subparagraph (C); and may not have been awarded, at any time, a planning grant under this paragraph. A State that wishes to be awarded a planning grant under this paragraph shall, not later than 60 days after the date on which the notice of funding availability with respect to the grant is released, submit to the Assistant Secretary an application, in a format to be determined by the Assistant Secretary, that contains the following materials: A description of the entity selected to serve as the administering entity for the State, as described in subsection (b). A certification from the State that, not later than 1 year after the date on which the Assistant Secretary awards the planning grant to the State, the administering entity for that State will submit to the Assistant Secretary a State Digital Equity Plan developed under this subsection, which will comply with the requirements of this subsection, including the requirements of paragraph (2). The assurances required under subsection (e). The amount of a planning grant awarded to an eligible State under this paragraph shall be determined according to the formula under subsection (d)(3)(A)(i). Except as provided in subclause (II), with respect to a planning grant awarded to an eligible State under this paragraph, the State shall expend the grant funds during the 1-year period beginning on the date on which the State is awarded the grant funds. The Assistant Secretary may grant an extension of not longer than 180 days with respect to the requirement under subclause (I). The Assistant Secretary shall ensure that any eligible State to which a planning grant is awarded under this paragraph may appeal or otherwise challenge in a timely fashion the amount of the grant awarded to the State, as determined under clause (i). An eligible State to which a planning grant is awarded under this paragraph shall, through the administering entity for that State, use the grant funds only for the following purposes: To develop the State Digital Equity Plan of the State under this subsection. Subject to subclause (II), to make subgrants to any of the entities described in clauses
(i)through
(xi)of paragraph (1)(D) to assist in the development of the State Digital Equity Plan of the State under this subsection. If the administering entity for a State makes a subgrant described in subclause (I), the administering entity shall, with respect to the subgrant, provide to the State the assurances required under subsection (e). Beginning not later than 2 years after the date on which the Assistant Secretary begins awarding planning grants under subsection (c)(3), the Assistant Secretary shall each year award grants to eligible States to support— the implementation of the State Digital Equity Plans of those States; and digital inclusion activities in those States. A State that wishes to be awarded a grant under this subsection shall, not later than 60 days after the date on which the notice of funding availability with respect to the grant is released, submit to the Assistant Secretary an application, in a format to be determined by the Assistant Secretary, that contains the following materials: A description of the entity selected to serve as the administering entity for the State, as described in subsection (b). The State Digital Equity Plan of that State, as described in subsection (c). A certification that the State, acting through the administering entity for the State, shall— implement the State Digital Equity Plan of the State; and make grants in a manner that is consistent with the aims of the Plan described in clause (i). The assurances required under subsection (e). In the case of a State to which the Assistant Secretary has previously awarded a grant under this subsection, any amendments to the State Digital Equity Plan of that State, as compared with the State Digital Equity Plan of the State previously submitted. Subject to clauses (ii), (iii), and (iv), the Assistant Secretary shall calculate the amount of a grant awarded to an eligible State under this subsection in accordance with the following criteria, using the best available data for all States for the fiscal year in which the grant is awarded: 50 percent of the total grant amount shall be based on the population of the eligible State in proportion to the total population of all eligible States. 25 percent of the total grant amount shall be based on the number of individuals in the eligible State who are members of covered populations in proportion to the total number of individuals in all eligible States who are members of covered populations. 25 percent of the total grant amount shall be based on the lack of availability of broadband service and lack of adoption of broadband service in the eligible State in proportion to the lack of availability of broadband service and lack of adoption of broadband service in all eligible States, which shall be determined according to data collected— from the annual inquiry of the Commission conducted under section 706(b) of the Telecommunications Act of 1996 ( 47 U.S.C. 1302(b) ); from the American Community Survey or, if necessary, other data collected by the Bureau of the Census; from the Internet and Computer Use Supplement to the Current Population Survey of the Bureau of the Census; by the Commission pursuant to the rules issued under section 802 of the Communications Act of 1934 ( 47 U.S.C. 642 ); and from any other source that the Assistant Secretary, after appropriate notice and opportunity for public comment, determines to be appropriate. The amount of a grant awarded to an eligible State under this subsection in a fiscal year shall be not less than 0.5 percent of the total amount made available to award grants to eligible States for that fiscal year. If, after awarding planning grants to States under subsection (c)(3) and capacity grants to eligible States under this subsection in a fiscal year, there are amounts remaining to carry out this section, the Assistant Secretary shall distribute those amounts— to eligible States to which the Assistant Secretary has awarded grants under this subsection for that fiscal year; and in accordance with the formula described in clause (i). If, in a fiscal year, the Commonwealth of Puerto Rico (referred to in this clause as Puerto Rico ) is an eligible State and specific data for Puerto Rico is unavailable for a factor described in subclause (I), (II), or
(III)of clause (i), the Assistant Secretary shall use the median data point with respect to that factor among all eligible States and assign it to Puerto Rico for the purposes of making any calculation under that clause for that fiscal year. With respect to a grant awarded to an eligible State under this subsection, the eligible State shall expend the grant funds during the 5-year period beginning on the date on which the eligible State is awarded the grant funds. The Assistant Secretary shall ensure that any eligible State to which a grant is awarded under this subsection may appeal or otherwise challenge in a timely fashion the amount of the grant awarded to the State, as determined under subparagraph (A). The administering entity for an eligible State to which a grant is awarded under this subsection shall use the grant amounts for the following purposes: Subject to subclause (II), to update or maintain the State Digital Equity Plan of the State. An administering entity for an eligible State to which a grant is awarded under this subsection may use not more than 20 percent of the amount of the grant for the purpose described in subclause (I). To implement the State Digital Equity Plan of the State. Subject to subclause (II), to award a grant to any entity that is described in section 31122(b) and is located in the eligible State in order to— assist in the implementation of the State Digital Equity Plan of the State; pursue digital inclusion activities in the State consistent with the State Digital Equity Plan of the State; and report to the State regarding the digital inclusion activities of the entity. Before an administering entity for an eligible State may award a grant under subclause (I), the administering entity shall require the entity to which the grant is awarded to certify that— the entity shall carry out the activities required under items (aa), (bb), and
(cc)of that subclause; the receipt of the grant shall not result in unjust enrichment of the entity; and the entity shall cooperate with any evaluation— of any program that relates to a grant awarded to the entity; and that is carried out by or for the administering entity, the Assistant Secretary, or another Federal official. Subject to subclause (II), to evaluate the efficacy of the efforts funded by grants made under clause (iii). An administering entity for an eligible State to which a grant is awarded under this subsection may use not more than 5 percent of the amount of the grant for a purpose described in subclause (I). Subject to subclause (II), for the administrative costs incurred in carrying out the activities described in clauses
(i)through (iv). An administering entity for an eligible State to which a grant is awarded under this subsection may use not more than 3 percent of the amount of the grant for the purpose described in subclause (I). When applying for a grant under this section, a State shall include in the application for that grant assurances that— if any of the entities described in clauses
(i)through
(xi)of subsection (c)(1)(D) or section 31122(b) is awarded grant funds under this section (referred to in this subsection as a covered recipient ), provide that— the covered recipient shall use the grant funds in accordance with any applicable statute, regulation, or application procedure; the administering entity for that State shall adopt and use proper methods of administering any grant that the covered recipient is awarded, including by— enforcing any obligation imposed under law on any agency, institution, organization, or other entity that is responsible for carrying out the program to which the grant relates; correcting any deficiency in the operation of a program to which the grant relates, as identified through an audit or another monitoring or evaluation procedure; and adopting written procedures for the receipt and resolution of complaints alleging a violation of law with respect to a program to which the grant relates; and the administering entity for that State shall cooperate in carrying out any evaluation— of any program that relates to a grant awarded to the covered recipient; and that is carried out by or for the Assistant Secretary or another Federal official; the administering entity for that State shall— use fiscal control and fund accounting procedures that ensure the proper disbursement of, and accounting for, any Federal funds that the State is awarded under this section; submit to the Assistant Secretary any reports that may be necessary to enable the Assistant Secretary to perform the duties of the Assistant Secretary under this section; maintain any records and provide any information to the Assistant Secretary, including those records, that the Assistant Secretary determines is necessary to enable the Assistant Secretary to perform the duties of the Assistant Secretary under this section; and with respect to any significant proposed change or amendment to the State Digital Equity Plan for the State, make the change or amendment available for public comment in accordance with subsection (c)(2); and the State, before submitting to the Assistant Secretary the State Digital Equity Plan of the State, has complied with the requirements of subsection (c)(2). In addition to other authority under applicable law, the Assistant Secretary shall terminate a grant awarded to an eligible State under this section if, after notice to the State and opportunity for a hearing, the Assistant Secretary determines, and presents to the State a rationale and supporting information that clearly demonstrates, that— the grant funds are not contributing to the development or implementation of the State Digital Equity Plan of the State, as applicable; the State is not upholding assurances made by the State to the Assistant Secretary under subsection (e); or the grant is no longer necessary to achieve the original purpose for which the Assistant Secretary awarded the grant. If the Assistant Secretary, in a fiscal year, terminates a grant under paragraph
(1)or under other authority under applicable law, the Assistant Secretary shall redistribute the unspent grant amounts— to eligible States to which the Assistant Secretary has awarded grants under subsection
(d)for that fiscal year; and in accordance with the formula described in subsection (d)(3)(A)(i). The Assistant Secretary— shall— require any entity to which a grant, including a subgrant, is awarded under this section to publicly report, for each year during the period described in subsection (c)(3)(D)(ii) or (d)(3)(B), as applicable, with respect to the grant, and in a format specified by the Assistant Secretary, on— the use of that grant by the entity; the progress of the entity towards fulfilling the objectives for which the grant was awarded; and the implementation of the State Digital Equity Plan of the State; establish appropriate mechanisms to ensure that any entity to which a grant, including a subgrant, is awarded under this section— uses the grant amounts in an appropriate manner; and complies with all terms with respect to the use of the grant amounts; and 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— the application of each State that has applied for a grant under this section; the status of each application described in clause (i); each report submitted by an entity under subparagraph (A); a record of public comments received during the comment period described in subsection (c)(2)(A) regarding the State Digital Equity Plan of a State, as well as any written responses to or actions taken as a result of those comments; and any other information that the Assistant Secretary considers appropriate to ensure that the public has sufficient information to understand and monitor grants awarded under this section; and may establish additional reporting and information requirements for any recipient of a grant under this section. A grant or subgrant awarded under this section shall supplement, not supplant, other Federal or State funds that have been made available to carry out activities described in this section. From amounts made available in a fiscal year to carry out the Program, the Assistant Secretary shall reserve— not more than 5 percent for the implementation and administration of the Program, which shall include— providing technical support and assistance, including ensuring consistency in data reporting; providing assistance to— States, or administering entities for States, to prepare the applications of those States; and administering entities with respect to grants awarded under this section; developing the report required under section 31123(a); and providing assistance specific to Indian Tribes, tribally designated entities, and Native Hawaiian organizations, including— conducting annual outreach to Indian Tribes and Native Hawaiian organizations on the availability of technical assistance for applying for or otherwise participating in the Program; providing technical assistance at the request of any Indian Tribe, tribally designated entity, or Native Hawaiian organization that is applying for or participating in the Program in order to facilitate the fulfillment of any applicable requirements in subsections
(c)and (d); and providing additional technical assistance at the request of any Indian Tribe, tribally designated entity, or Native Hawaiian organization that is applying for or participating in the Program to improve the development or implementation of a Digital Equity plan, such as— assessing all Federal programs that are available to assist the Indian Tribe, tribally designated entity, or Native Hawaiian organization in meeting the goals of a Digital Equity plan; identifying all applicable Federal, State, and Tribal statutory provisions, regulations, policies, and procedures that the Assistant Secretary determines are necessary to adhere to for the deployment of broadband service; identifying obstacles to the deployment of broadband service under a Digital Equity plan, as well as potential solutions; or identifying activities that may be necessary to the success of a Digital Equity plan, including digital literacy training, technical support, privacy and cybersecurity expertise, and other end-user technology needs; and not less than 5 percent to award grants directly to Indian Tribes, tribally designated entities, and Native Hawaiian organizations to allow those Tribes, entities, and organizations to carry out the activities described in this section. The Assistant Secretary may prescribe such rules as may be necessary to carry out this section. There are appropriated to the Assistant Secretary, out of any money in the Treasury not otherwise appropriated— for the award of grants under subsection (c)(3), $60,000,000 for fiscal year 2021, to remain available until expended; and for the award of grants under subsection (d)— $125,000,000 for fiscal year 2021, to remain available until expended; $125,000,000 for fiscal year 2022, to remain available until expended; $125,000,000 for fiscal year 2023, to remain available until expended; $125,000,000 for fiscal year 2024, to remain available until expended; and $125,000,000 for fiscal year 2025, to remain available until expended.
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