On July 24, 2024, NTIA published the Notice of Funding Opportunity (NOFO) for the Competitive Grant Program. The Competitive Grant Program is the third (and final) set of funds available from the Digital Equity Act (DEA) authorized by the Infrastructure Investment and Jobs Act (IIJA) of 2021. This blog post summarizes information about the NOFO, provides application strategies, and provides our best guesses for things NTIA will look for in your application. That said, you, your partners, subgrantees and anyone in your organization who will take part in submitting your application should read the NOFO as it is the best source of information about the grant program. 

For the first time, DEA funds are open to organizations other than state governments! Eligible entities (see list below) and US Territories may apply for funds to join this historic digital equity movement. The Competitive Grant Program will create lasting and meaningful change by focusing on covered populations, measurable implementation strategies, and stakeholder engagement.

Key Dates

• Applications for Eligible Entities (including Native entities) are due September 23, 2024
• Applications for US Territory governments (only) are due October 22, 2024*
• NTIA expects to award funds by Winter 2024 and no later than April 20, 2025
• Additional awards will be made on a rolling basis

*Organizations located in a US Territory but not part of the Territory’s government and that are eligible entities MUST apply to the general funding pool by the September 23, 2024 deadline. See the eligibility section below for more information about eligible applicants.

What Should You Know?

• $750 million is available now
  • $37.5 million is available for Native entities
  • $7.5 million is available for US Territories
• Grant awards for Eligible Entities will range from $5 to $12 million 
• Grant awards for US Territories will range from $1 to $2.5 million
• This grant is competitive, meaning only some applicants will receive an award
• NTIA anticipates making 150-200 awards
• Partnerships are encouraged for larger awards
• The NOFO requires a minimum 10% cash or in-kind match
• Grant funds must be used four years from the award date, with an additional year for evaluation with no extensions
• An additional $250 Million may become available in October 2024 and would be funded through this NOFO

NDIA’s Policy Team hosted a webinar covering DEA programs and timelines, information and resources on the Digital Equity Competitive Grant NOFO, and things you can do now to prepare. View the recording and slides here.

Who is Eligible?

The following entities are eligible as long as the entity is not serving and has not served as the Administering Entity for the state (i.e., the state entity that completed and is implementing your state’s digital equity plan) (pg. 6 of the NOFO):

• A political subdivision, agency, or instrumentality of a State, including an agency of a State responsible for administering or supervising adult education and literacy activities or for providing public housing in the state (this includes municipal, county, and regional governments in most states)
• An Indian Tribe, an Alaska Native entity, or a Native Hawaiian organization.
• A foundation, corporation, institution, or association that is
  • A not-for-profit entity; and
  • Not a school
• A community anchor institution
  • This 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 (pg. 15 of the NOFO)).
• A local educational agency (LEA)
  • Typically, a school district or similar local authority manages public schools in a specific area. For a complete definition, see 20 U.S.C. 16 7801(30).
• An entity that carries out a workforce development program
• A partnership between any of the above entities 

*A school that serves as a community anchor institution is eligible to apply (NTIA FAQs).

US Territory governments and Native entities have slightly different eligibility requirements. While not considered Eligible Entities, US Territory governments can apply for funding under the US Territories set aside using the same application (pg.3 of the NOFO). Organizations that are located in a US Territory, but not part of the Territory’s government, and qualify as an eligible entity must apply in the general pool of applicants. 

• For example, a nonprofit workforce development program in Pago Pago, American Samoa, may apply for funds to create a digital skill-building program. However, they would apply as part of the general pool of applicants rather than as part of the US Territories set aside, so they would need to apply by the September 23rd deadline. See the key dates above for more information on application deadlines. 

Both Native entities and other qualifying organizations on Native nations (American Indian Tribes, Alaska Native Villages and entities, or Native Hawaiian organizations) may apply for the Competitive Grant. The applicant must be a Native entity (see above) to qualify for the Native entity set aside, and the intended recipients of programs funded by the grant must be Covered Population members of the Native entity.

• For example, an Alaskan Native village applying for funds to create a public computer lab in a medical care center on Native lands that serves members of their village may apply as part of the Native entity set aside.

Organizations located in Native nations that do not qualify as an Indian Tribe, an Alaska Native entity, or a Native Hawaiian organization but do qualify as an eligible entity (see list above) will be considered in the general pool of applicants.

• An example would be a nonprofit that focuses on workforce development and is located in a Native nation but serves the general public and does not qualify as a Native entity (i.e., is not a Tribal government). This organization would apply to the general pool of applicants since it meets the workforce development entity criteria.

What Can the Grant Funds be Used For?

Proposals must include at least one of these activities (pg. 31 of the NOFO).

• Develop and implement digital inclusion activities that benefit one or more of the Covered Populations*
• Facilitate the adoption of broadband by the Covered Populations to provide educational and employment opportunities
• Implement training programs for the Covered Populations that cover basic, advanced, and applied skills 
• Implement workforce development programs 
• Make available equipment, instrumentation, networking capability, and digital network technology for broadband services to Covered Populations at low or no cost 
• Construct, upgrade, expand, or operate new or existing public access computing centers for Covered Populations through community anchor institutions; or 
• Undertake any other project or activity the Assistant Secretary finds to be consistent with the purposes of the Competitive Grant Program 

NTIA also allows for the reimbursement of certain costs that support creating your application (pg. 31 of the NOFO):

• Up to $50,000, including expenses related to preparing the application, may be reimbursed
• NTIA will only reimburse expenses after the publication date of the NOFO (July 24, 2024) and before the grant award
• Does not include lobbying and contingency fees (legal expenses)
• The budget proposal must include this expense, and the expense would be considered administrative costs (meaning they would contribute to the 10% cap of administrative expenses)
• NTIA and the Grants Officer must approve expenses in writing to be reimbursed
• To be refunded for pre-award costs, you must apply and receive an award. If you apply and do not receive an award, you will not be refunded for pre-award costs. 

*The Digital Equity Act defines covered populations as (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.

Match Requirements

The Competitive Grant Program has a 10% match requirement, meaning the applicant needs to provide a minimum of 10% cash or in-kind services toward the total project’s costs. However, NTIA may issue waivers based on financial need, and US Territories may not need to match, depending on the size of the Territory. The match can be a cash or in-kind match. In-kind matches may include third-party contributions from an organization other than the applicant or partners.

In-kind contributions are non-cash donations of property, goods, or services that benefit grant-supported projects. Potential in-kind sources could include your employees’ and/or volunteers’ time spent on grant activities, equipment your organization owns or uses (vehicles, etc.), supplies, indirect costs (things that are necessary for the overall operation of the proposal but not directly tied to a single project like office supplies and staff salaries), computer hardware and software, and use of the building your organization is located in.

Your match will be part of your total project budget, so it must be funds (or in-kind services) that help you implement your project. See the What Can the Grant Funds be Used For? section for more information on digital equity activities the grant funds may be used for. 

You cannot use federal funds for the match. Applications with a higher than 20% match will receive additional consideration in the programmatic review as part of the selection process. Applications with a 10-20% match will not get extra points, but applications with a 20-29%  match and a 30+% match will receive additional points accordingly (pg. 40 of the NOFO). For more information on the match requirement, see page 23 of the NOFO.

Partnerships are Key

NTIA aims to support various organizations in better-serving members of the Covered Populations and creating lasting change. To facilitate this process, NTIA encourages eligible entities to collaborate on applications.

Only eligible entities can be members of the partnership, and the application must be submitted by a lead entity acting as the Authorized Representative. An organization may participate as a member of multiple partnerships if it is not the Authorized Representative for more than one application. However, an organization may only submit one application as a solo applicant or an Authorized Representative for a partner application.

Partnership applications must include a Letter of Commitment from each member organization authorizing the lead applicant to apply on their behalf, the scope of work for each partner, allocation of funds for each partner organization, and if partners are listed on any other applications. 

​​For a partnership to be considered in the Native entity pool of funding, the Authorized Representative must be a Native entity, and the proposed digital equity activities must serve members of the Native entity. The application’s partners may meet any requirements listed in the eligibility section as an eligible partner. All partners applying as a Native entity must include a Tribal Government Resolution authorizing them to apply for Competitive Grant Funds. 

For complete information on partner applications, see pages 22-23 of the NOFO.

What Are You Not Allowed to Spend Grant Funds On?

The NOFO outlines a few activities that can only take up a portion of the award and others that are not allowed (pgs 32-33 of the NOFO):

• 10 percent cap on evaluation
• 10 percent cap on administration, which includes both direct and indirect funds
  • Indirect expenses can be divided into two categories: facilities and administration. Facilities include costs like rent and maintenance expenses, and administration includes general expenses like accounting and administrative personnel. For a complete description of indirect expenses, see 2 C.F.R. 200.414.
• Previously awarded federal or state grant funds to create a digital equity plan or implement digital inclusion activities must be used before using Competitive Grant Program funds. If Competitive Grant funds are used to build up (rather than replace) other federal or state-funded programs that implement the type of activities listed in this NOFO, the application must describe how the funds will not duplicate other funds. 
• Profit, fee, or other incremental charges above the actual cost
• Funds may not be used for general research or academic studies of digital equity 

Data, Measurement, and Evaluation Requirements to Demonstrate Success

All applicants are required to measure and evaluate programs as part of their program plan. See pages 20-21 of the NOFO for a complete description of reporting requirements.

• Measurement and evaluation must include documentation meeting performance objectives and the success of the programs funded by the grant. Suggestions on information to collect can be found on page 20 of the NOFO
• An overall assessment of the effectiveness of the program must be submitted at the end of the period of performance 
• If you receive an award, you be required to follow NTIA’s reporting requirements, including an annual report, evaluation report, financial report, performance technical report, and meeting guidelines for research on human subjects
• NTIA may sponsor an evaluation of the entire grant program, in which grantees should be prepared to participate

Application Details

Some key strategies NTIA will look for in applications include (pgs. 14-15 of the NOFO)

• Programs and activities that will address gaps in the implementation of State Digital Equity Plans
• Supplement or further advance State Digital Equity Plans
• Address barriers to digital equity that State Digital Equity Plans failed to identify 
• Innovative digital equity programs
• Increase internet access and broadband adoption of the Covered Populations
• The geographic diversity of applicants
• Are not duplicative or conflicting with other programs

Since the Competitive Grant Program is part of the DEA, NTIA will also look for proposals aligning with the DEA’s framework. Proposals must support one of the following:

• Economic stability, including workforce development and employment opportunities
• Access to quality education
• Access to healthcare
• Social and civic engagement; and 
• Community access to the benefits of internet technology 

NTIA encourages engagement with Covered Populations to co-create innovative solutions to meet their needs. NTIA will be looking for proposals whose strategies include the following (pg. 32 of the NOFO):

• Focus on covered populations
• Enable long-lasting and meaningful change
• Include measurable implementation strategies
• Involve stakeholder engagement throughout the implementation process

Applications for the Competitive Grant program must be complete, on time, and applicants must follow the instructions in the NOFO  to be considered (pgs. 24-30). NTIA will host (at least) six webinars with guidance on applying for the grant. Check their website for more information about upcoming webinars and other resources.

How NTIA Will Determine Awards

NTIA will score applications in three stages:

1. Initial Eligibility and Administrative Review

• In this stage, NTIA will make sure the applicant is indeed an eligible entity, check that all application materials are complete, and verify that the application was submitted on time (pg. 36 of the NOFO). Applications that meet these criteria will move on to the merit review.

2. Merit Review

• In this stage, NTIA will score the application based on the evaluation factors listed in the NOFO (pgs. 37-39). Applicants who score 70 points or higher will move on to the programmatic review. Applicants who score below 70 points will not receive funding. The evaluation criteria for Merit Review are:
  • Project need, purpose, and benefits (40 points)
  • Strength of applicant’s organizational capability (25 points)
  • Strength of project implementation plan and budget (25 points)
  • Project results and evaluation (10 points)

 3. Programmatic Review

• In the final review stage, NTIA will group proposals that score within a five to ten-point range, beginning with the highest-scoring applications. Applications will move through the remaining review steps in their prioritized grouping, and funding may be limited for each group. NTIA will move to the next group once it has completed the awards for the previous group. 
• This review is also scored numerically based on factors noted in the NOFO (pgs. 39-42 of the NOFO)

From here, NTIA will recommend a final list of applicants to the Assistant Secretary, who will act as the selecting official and submit a final award slate to the National Institute of Standards and Technology (NIST) Grants Officer. The NIST Grants Officer will issue awards, and the decisions are final.

All applicants will be notified in writing if their application was selected or if it was unsuccessful.

NTIA will allow unsuccessful applicants to request a debrief on their application.

Future Funding

• An additional $250 million may become available in October 2024 and would be funded through this NOFO (ie. NTIA would be able to fund more applicants in this first round)
• If the additional funds for fiscal year 2025 are made available through this NOFO, there will only be one future Competitive NOFO; if the funds for fiscal year 2025 are not made available through this NOFO, there will be two additional Competitive NOFOs (pg. 4 of the NOFO)
• Funds not awarded from the Native entity or US Territory set-asides will be available in future NOFO(s) (Pg. 19)

What You Can Do Now

• Read the NOFO!
• Attend NDIA’s webinar on Friday, August 2, at 1 p.m. ET, where we will break down the Competitive Grant process. Please register for the webinar here. 
• Attend NTIA’s webinar series about the Digital Equity Competitive Grant and application materials starting on August 7, 2024. Register for the webinars here. 
• All applications must be submitted through the NTIA Grants Portal, which will open on August 14, 2024. Applicants may and are encouraged to apply early!
• Send questions to [email protected]
• Check NTIA’s website regularly for updates to their FAQ page and amendments to the NOFO 
• Review eligibility information to see if you qualify to apply for the grant
• Register with SAM.gov and get your Unique Entity Identifier (UEI) 
• Engage stakeholders
• Identify partnerships
• Read your State Digital Equity Plan
• Review Application Guidance in NTIA’s Technical Assistance Hub
• Prepare the Application Materials

Apply in the Grants Portal by the due date, September 23, 2024

Additional Resources:

• Digital Equity Competitive Grant Primer
• Grant Terminology