Congress creates nonprofit to fund broadband access, but allows for-profit subsidiaries.
H.R. 8936 — Digital Opportunity Foundation Act of 2026 · Filed by Doris Matsui (D-CA) · Introduced May 20, 2026 · Referred to committee
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What it does
This bill creates a nonprofit Foundation for Digital Opportunity, governed by a Board with representatives from government, academia, industry, nonprofits, and community organizations. The Foundation will award grants, conduct studies, and run programs to expand broadband access and digital literacy—especially for underserved populations—while partnering with federal agencies (Commerce Department, FCC) and potentially establishing for-profit subsidiaries to attract private investment in digital inclusion projects.
Why we flagged it
The bill's core function is to establish a nonprofit grant-making and program-delivery vehicle for broadband access and digital literacy, supplementing existing federal efforts. It is fundamentally a public-private coordination mechanism, not a deregulation, tax cut, or commemorative measure.
What the text implies
- For-profit subsidiaries may create conflicts between nonprofit mission (equity) and profit motive; unclear governance over subsidiary investment decisions and returns.
- Foundation's ability to 'supplement, not supplant' NTIA/FCC work may create ambiguity about which agency leads on overlapping initiatives, potentially fragmenting accountability.
The full analysis lists 5 implications of this text.
Who stands to gain
broadband service providers (infrastructure partnerships); technology companies (device/software partnerships); business incubators and small business investment companies