Trump Unilaterally Cancels $2.75B Digital Equity Act, Calling It 'Racist and Illegal'

President Trump unilaterally terminated the Digital Equity Act's Competitive Grant Program in May 2025, cancelling $2.75 billion in congressionally appropriated funding and calling the program 'racist and illegal.' The cancellation forced nonprofits to scrap projects, with the National Digital Inclusion Alliance losing $25.7 million in awarded funding for digital navigator programs. In October 2025, NDIA filed suit asserting the president lacks authority to terminate a congressionally mandated grant program. On May 9, 2026, the Constitutional Accountability Center filed an amicus brief arguing Trump violated the Constitution's separation of powers by cancelling a program Congress had created and funded. The brief emphasizes Congress's exclusive authority over federal spending and the president's lack of unilateral termination power.

"racist and illegal" — Trump's characterization of the congressionally-funded Digital Equity Act program when announcing its unilateral cancellation in May 2025