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President Donald Trump announced on Thursday the immediate end of a “racist” digital equity program he says will save American taxpayers $2.5 billion.
The president shared the update in a Truth Social post following a discussion with Commerce Secretary Howard Lutnick.
“I have spoken with my wonderful Secretary of Commerce, Howard Lutnick, and we agree that the Biden/Harris so-called ‘Digital Equity Act’ is totally UNCONSTITUTIONAL,” Trump wrote.
“No more woke handouts based on race! The Digital Equity Program is a RACIST and ILLEGAL $2.5 BILLION DOLLAR giveaway. I am ending this IMMEDIATELY, and saving taxpayers billions of dollars!” he said.
Trump is dismantling the Digital Equity Act as part of his effort to roll back diversity, equity and inclusion (DEI). The Digital Equity Act, which was signed into law by President Joe Biden in 2021 as part of the $1 trillion infrastructure package, was intended to improve digital access for a wide range of underserved communities.
The legislation directs $2.75 billion in federal grants through the National Telecommunications and Information Administration (NTIA).
The move comes the same week that the Department of Labor (DOL) and the Department of Government Efficiency (DOGE) have eliminated 25 diversity, equity and inclusion (DEI) grant programs, resulting in $8.4 million in savings that would have funded initiatives promoting “gender-expansive” inclusion and other progressive projects.
“Great work today by @USDOL, canceling $13.6M in wasteful DEI grants totaling $8.4M in savings, including: – $716k for ‘DEIA materials, training modules, and support networks’ – $398k for ‘gender equity awareness training’ – $350k to ‘migrant sending or receiving communities,’” DOGE posted to X.
According to a source familiar with the matter, the rescinded funding had been allocated to several controversial programs. These included an equity summit designed to promote inclusive and safe work environments for women and “gender-expansive” individuals, especially those of color, with disabilities, or neurodivergence, as well as transgender individuals and others underrepresented in technology fields.
Musk previously announced that the organization would reduce the federal deficit by $1 trillion by 2026, cutting an average of $4 billion daily. He added that if these numbers were successfully met, there would be “no inflation in 2026.”
