US Digital Equity Act Lawsuit Paused as Commerce Dept. Preps Program Relaunch

The National Digital Inclusion Alliance (NDIA) and the U.S. government filed a joint status report on August 17, 2026 implementing a federal court's August 5 stay of NDIA v. Trump — the lawsuit over the Administration's 2025 termination of the Digital Equity Act Competitive Grant Program. Judge John D. Bates had ruled July 15, 2026 that the program's 'racial or ethnic minority group' classification was unconstitutional but severable from the rest of the statute. Litigation is now frozen until two weeks after NTIA issues a new funding notice (targeted for December 2026) or January 15, 2027, whichever comes first; the two sides disagree over whether the 65 organizations originally recommended for awards should be allowed to revise and resubmit applications under the new notice.