47 C.F.R. § 302.7 – Eligible uses for grant funds.

(a) Eligible uses. In general and subject to the more specific uses listed in paragraphs (a)(1) through (3) of this section, grant funds awarded to HBCUs, TCUs or MSIs may be used as appropriate to facilitate educational instruction and learning, including through remote instruction; and grant funds awarded to consortia including Minority Business Enterprises (MBEs) or Tax-Exempt Organizations may be used to operate that MBE or Tax-Exempt Organization. Grant funds awarded under this part may only be used for the following purposes:
1. (1) The purchase of broadband internet access service, including the installation or upgrade of broadband facilities on a one-time, capital improvement, basis in order to increase or expand broadband capacity and/or connectivity at the eligible institution;
2. (2) The purchase or lease of eligible equipment and devices for student or patron use, subject to any restrictions and prohibited uses identified in paragraph (d) of this section; and
3. (3) To hire and train information technology personnel who are a part of the eligible anchor institution, MBE or Tax-Exempt Organization.
(b) Student priority for the provision of broadband services, devices, and equipment. The HBCUs, TCUs or MSI applicant must certify that if it receives a grant under this part to provide broadband internet access service or eligible equipment to students that it will, as a condition of that grant, prioritize students in need, in accordance with the following criteria:
1. (1) Students who are eligible to receive Federal Pell Grants;
2. (2) Students who receive any other need-based financial aid from the Federal Government, a State, or the eligible recipient;
3. (3) Students who are qualifying low-income consumers for the purposes of the program carried out under 47 CFR part 54, subpart E, or any successor regulations;
4. (4) Students who are low-income individuals as that term is defined in section 312(g) of the Higher Education Act of 1965 (20 U.S.C. 1058(g)); or
5. (5) Students who have been approved to receive unemployment insurance benefits under any Federal or State law since March 1, 2020.
(c) Prioritization of students and patrons without equipment and/or broadband access. Any recipient that lends or provides eligible equipment to students or patrons must prioritize the lending or providing of such equipment or devices to students or patrons that the recipient believes do not have access to such equipment.
(d) Prohibited uses. The sale or transfer of any portion of the grant-funded equipment for a thing (including a service) of value during the life of equipment is prohibited. Recipients are required to comply with the property standards, including the use and disposition requirements, contained in 2 CFR 200.311 through 200.316, and with the terms and conditions set forth in the grant award.