The Virgin Islands Next Generation Network is alerting its partners that the territory’s $2.1 million Digital Equity Capacity Grant has been terminated, effective immediately.
According to an email sent Thursday to stakeholders, viNGN said it received a letter from the National Institute of Standards and Technology late Friday night informing them of the grant’s cancellation. Notably, the agency said it has not received any communication from the National Telecommunications and Information Administration, the federal entity charged with administering the grant.
The Digital Equity Grant, which was awarded to promote cybersecurity awareness and digital literacy in the territory, was terminated by the federal government on May 9. In testimony submitted Wednesday to the Senate’s Committee on Housing, Transportation and Telecommunications, viNGN President Stephan Adams explained: “The President [Donald Trump] has determined, and Secretary Lutnick agreed, that the Digital Equity Capacity Program is unconstitutional and grants issued pursuant to it were created with, and administered using, impermissible and unconstitutional racial preferences.”
Officials said the termination could make its way through the federal legal system, since the funding was appropriated by Congress under the 2021 Digital Equity Act and had already been contracted to states and territories, though any challenge will take time.
In the meantime, viNGN is moving forward with finalizing its project package and preparing to release its own Notices of Funding Opportunities, which had been scheduled for this month, to keep those projects “shovel-ready if/when things begin to move.” The agency is also “in the process of trying to identify other funding streams for all, or even a handful, of the projects originally earmarked with this fund,” according to Adams.
Thursday’s email additionally directed potential applicants to the Virgin Islands Broadband Office, which is accepting proposals of up to $500,000 through its three open BEAD-related NOFOs. “They warmly welcome any proposals that were going to be submitted under the DE Grant,” viNGN wrote, linking to the Office of Management and Budget’s website.
The BEAD Program — short for Broadband Equity, Access, and Deployment — was another major focus of Wednesday’s Senate hearing. According to testimony submitted by the Office of Management and Budget, the Virgin Islands has secured the full $27.1 million in BEAD funding but will not be using it to deploy broadband infrastructure. BEAD Director Somere Webber, submitting testimony Wednesday on behalf of OMB Director Julio Rhymer, noted that such use would be “considered duplicative” due to the Federal Communications Commission’s Connect USVI Grant.
Instead, the territory’s BEAD funds will be directed toward non-deployment initiatives designed to promote digital equity, including user training in cybersecurity and privacy, remote learning support, digital literacy and upskilling programs, coding and computer science education, and prisoner education initiatives. Also eligible are projects related to broadband sign-up assistance, technology support, multilingual outreach, and direct broadband subscription subsidies, provided they supplement rather than duplicate existing programs like the Affordable Connectivity Program.
VIBO has already released its NOFOs and hosted a webinar to guide prospective applicants. According to OMB’s testimony, the goal is to begin project implementation by Oct. 1, pending completion of subgrantee selection, certification, and the submission of a final proposal due July 17.
Additionally, VIBO is considering affordability incentive programs that would provide free internet for 12 to 36 months to residents who complete approved digital literacy or workforce development programs. Newly established e-commerce businesses may also qualify for subsidized services once operational and in good standing with the government of the Virgin Islands.
While viNGN is now grappling with the fallout from the federal decision, its ARPA-funded (American Rescue Plan Act) Community Wi-Fi expansion remains on track. In his testimony, Adams said the company has deployed 102 free hot spots with 462 access points and has identified more than 30 additional candidate sites. The goal is to complete 95 hot spot installations by year’s end, he said.
