The Benton Institute for Broadband & Society reports…

On July 15, 2026, Judge John D. Bates of the U.S. District Court for the District of Columbia issued a decision that could revive a federal grant program the President declared dead more than a year ago. In National Digital Inclusion Alliance (NDIA) v. Trump (Civil Action No. 25-3606), the court held that the Digital Equity Act of 2021 contains an unconstitutional racial classification, but that this single flaw does not doom the law. The court concluded that the relevant provision, which directs consideration of “individuals who are members of a racial or ethnic minority group” in awarding grants, can be ignored without impairing the operation of the rest of the statute (in legal parlance, “severed”). Thus, NDIA’s claim to otherwise restore the Digital Equity Competitive Grant Program survives, minus any consideration of the race or ethnicity of the people the grant projects serve.

Most importantly for the cities, nonprofits, and digital inclusion practitioners who applied for—and in some cases won—Competitive Grant Program funds: the court relied upon the government’s submission that it would “now commit[] to restoring the Competitive Grant Program upon receiving this judicial determination.”

This is a ruling on the government’s motion to dismiss the entire case, not a final judgment. The court has not ordered the program restored; it has held that the remaining aspects of NDIA’s challenge may go forward. However, the resolution of the constitutional question essentially addresses the government’s stated reason for ending the program.

The article goes on with some history and greater details into the court’s decision; it also shares a practical summary…

A Win, a Loss, or Both?

How you read this ruling may depend on where you sit. For digital equity advocates, the bottom line is real: a federal court rejected the argument that a single constitutional flaw justified scrapping the Competitive Grant Program, and the government has told the court it will restore the program now that a judge has resolved its only stated objection.

But the government may have won something larger than it lost. A federal court has now held that a provision of the Digital Equity Act is unconstitutional—adopting the Administration’s reading of Students for Fair Admissions and finding that Congress supplied no justification that could survive strict scrutiny. The court also accepted that the Executive Branch may decline to enforce a statute it deems unconstitutional while awaiting judicial review. And the government’s commitment to restore the program is a statement in a legal brief, not a court order; the court has not yet granted any relief, and it noted that once the program is reinstated, some or all of NDIA’s claims may become moot. That means the shape of the restored program—its guidelines, its treatment of the seven remaining covered populations, its timeline—will be decided, at least initially, by the same Administration that ended it.

The Digital Equity Act survives. What it looks like in practice is now an open question—one that will be answered as much by NTIA’s next moves as by anything a court has said.