CARES Act’s Impact on US Digital Divide
Exploring how the 2020 CARES Act funding aimed to bridge America's broadband gaps and why long-term solutions remain essential.
The COVID-19 pandemic exposed deep disparities in internet access across the United States, turning the digital divide into a national crisis. As schools shifted online, remote work became mandatory, and telehealth services surged, millions without reliable broadband were left behind. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law in March 2020, injected substantial funds to address these issues. With approximately $3.28 billion directed toward broadband initiatives, the legislation promised a turning point. But did it deliver lasting change? This article delves into the allocation, usage, outcomes, and lessons from this historic funding push, drawing on official data and analyses to assess its true impact.
Understanding the Scope of the Digital Divide Pre-CARES Act
Before the pandemic, the digital divide already affected over 20% of American households lacking high-speed internet, according to Federal Communications Commission (FCC) reports. Rural areas, low-income communities, and communities of color bore the brunt, with broadband deployment lagging due to high infrastructure costs and low return on investment for providers. Urban-rural gaps were stark: while cities enjoyed fiber-optic networks, remote regions relied on outdated DSL or satellite services with speeds under 25 Mbps download—the FCC’s minimum for broadband.
The crisis amplified these issues. A 2020 FCC survey highlighted that 18 million Americans lacked any home internet, and 42% of K-12 students couldn’t complete homework online due to connectivity problems. This wasn’t just about access; affordability, device availability, and digital skills compounded the problem. The CARES Act emerged as a response, channeling funds through flexible state grants, education programs, and federal initiatives to plug these holes quickly.
Key Funding Streams and Their Broadband Focus
The CARES Act’s broadband dollars flowed through three primary channels:
- State and Tribal General Relief Funds: Over $150 billion in flexible aid to governors, with states opting to allocate portions—totaling billions—for connectivity projects.
- Education Emergency Funds: The Governor’s Emergency Education Relief (GEER) and Elementary and Secondary School Emergency Relief (ESSER) funds, totaling $31 billion, saw many states redirect money to internet solutions.
- Federal Program Boosts: Enhancements to the FCC’s COVID-19 Telehealth Program ($200 million) and USDA’s ReConnect Program ($550 million) targeted healthcare and rural infrastructure.
By late 2020, data from the Schools, Health & Libraries Broadband (SHLB) Coalition revealed 43 states plus federal programs had committed funds, categorizing expenditures into digital learning (55%), infrastructure (33%), telehealth (8%), libraries (1%), and other (3%). This breakdown underscores a bias toward short-term fixes over permanent builds.
How States Deployed CARES Act Broadband Dollars
State-level decisions varied widely, reflecting local priorities. Digital learning dominated, with $1.8 billion spent on devices like laptops, tablets, and hotspots. For instance, programs in California and New York distributed over 500,000 hotspots to students, enabling remote classes. However, these were temporary measures—hotspots often capped data or required monthly top-ups post-funding.
Infrastructure investments, at about $1 billion, funded fiber extensions in underserved counties. Rural states like Kentucky and West Virginia used funds for last-mile connections, serving thousands of homes. Telehealth saw $250 million for clinic broadband upgrades, vital for rural hospitals. Yet, libraries—a key anchor for public access—received a mere $7 million across four states, focusing on home device loans rather than facility upgrades.
| Category | Funding Amount | % of Total | Primary Uses |
|---|---|---|---|
| Digital Learning | $1.8B | 55% | Hotspots, laptops for K-12 |
| Infrastructure | $1.08B | 33% | Fiber builds, tower upgrades |
| Telehealth | $260M | 8% | Clinic connectivity |
| Libraries | $7M | 1% | Device loans |
| Other | $100M | 3% | Workforce training |
This table illustrates the skewed priorities, with immediate student needs trumping systemic infrastructure.
Success Stories: Where CARES Act Funding Made a Difference
Despite limitations, bright spots emerged. In Georgia, GEER funds built a 100-mile fiber network connecting 5,000 rural homes and schools, outlasting the pandemic. Tribal nations, via flexible grants, deployed satellite solutions for remote reservations, boosting adoption rates by 30%. Telehealth expansions allowed 1.5 million additional consultations in underserved areas, per FCC data.
Libraries in select states, like Michigan, created ‘connectivity hubs’ with subsidized hotspots, embodying a ‘to and through’ model—using institutions to reach homes. These efforts temporarily narrowed the K-12 gap, with homework completion rates rising 25% in funded districts.
Persistent Challenges: Why the Divide Persists
One year post-CARES Act, the divide endured. Hotspots and devices addressed symptoms, not roots: 40% of recipients faced data exhaustion or service lapses after funding ended. Infrastructure spending, while promising, covered only 10% of unserved locations, per BroadbandNow estimates. Libraries’ underfunding ignored their role as evergreen access points.
Affordability loomed large—post-subsidy bills priced out low-income users. Digital literacy gaps persisted, with older adults and minorities underserved. Subsequent laws like the American Rescue Plan ($7B for E-Rate) and Infrastructure Investment and Jobs Act ($65B total broadband) built on CARES but highlighted its insufficiency as a standalone fix.
Lessons for Future Broadband Policy
The CARES Act taught that emergency funding excels at triage but falters without strategy. Key takeaways include:
- Prioritize fiber over wireless for scalability.
- Integrate affordability subsidies from day one.
- Empower libraries and schools as deployment anchors.
- Mandate digital skills training alongside hardware.
Recent frameworks like the Rhizomatic Digital Ecosystem—covering access, availability, adequacy, acceptability, and affordability—offer blueprints. Programs such as BEAD and DEA aim to embed these, but sustained investment is crucial.
Looking Ahead: Building an Equitable Digital Future
By 2026, with ACP lapsed and 13% of users disconnecting per recent studies, the CARES Act’s legacy is mixed: a vital bridge that revealed deeper needs. True equity demands $100B+ in comprehensive plans, blending public-private partnerships, community networks, and spectrum innovations. Only then can the US ensure every citizen thrives in a connected world.
Frequently Asked Questions (FAQs)
What was the total CARES Act funding for broadband?
Approximately $3.28 billion across state grants, education funds, and federal programs.
Did the CARES Act eliminate the digital divide?
No, it provided short-term relief but didn’t address root causes like infrastructure and affordability.
Which states used CARES funds most effectively?
States like Georgia and Kentucky focused on lasting fiber builds, serving thousands permanently.
How can libraries help close the divide?
As public access hubs, they can distribute devices and train users, extending connectivity ‘to and through’ communities.
What came after the CARES Act for broadband?
Laws like the Infrastructure Act ($65B) and IIJA programs target comprehensive deployment.
References
- Why Didn’t the CARES Act Solve the Digital Divide? — Schools, Health & Libraries Broadband (SHLB) Coalition. 2021-03-01. https://www.shlb.org/blogs/why-didnt-the-cares-act-solve-the-digital-divide
- The Digital Divide: What Is It, Where Is It, and Federal Assistance — Congressional Research Service (CRS). 2023-02-15. https://www.everycrsreport.com/reports/R46613.html
- Addressing the Digital Divide and the Covid Relief Package — Bipartisan Policy Center. 2021-04-20. https://bipartisanpolicy.org/article/addressing-the-digital-divide-and-the-covid-relief-package/
- Redefining and solving the digital divide and exclusion — PubMed Central (PMC), National Library of Medicine. 2024-10-01. https://pmc.ncbi.nlm.nih.gov/articles/PMC12052546/
- CARES Act (P.L. 116-136) — U.S. Congress. 2020-03-27. https://www.congress.gov/bill/116th-congress/house-bill/748/text
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