Court Rules the Digital Equity Act's Race Provision Is Unconstitutional—But Severable

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.