White House Asks Congress to Close ‘Digital Divide’
February 10, 2000 | Read Time: 1 minute
President Clinton is asking Congress to provide nearly $2.4-billion to help poor people and members of minority groups gain access to technology.
Mr. Clinton is proposing that the government pass tax incentives worth $2-billion to encourage companies to donate computers to schools, libraries, and community-technology centers. Through June 30, 2004, corporations would be able to claim a more-generous tax break than is currently permitted for such gifts under the basic deduction for donations of products. Currently, only computer contributions to schools are eligible for the expanded deduction, and that provision is set to expire this year.
In addition, companies that sponsor schools and community-technology centers in certain poor neighborhoods or that provide technology training to their employees will be eligible for tax credits.
Mr. Clinton is also asking for:
* $45-million for the Department of Commerce’s Technology Opportunities Program, which awards grants to non-profit organizations and state and local governments to integrate technology into education, health-care, public-safety, and other projects. The Commerce Department program’s current budget is $15-million.
* $100-million to establish up to 1,000 technology centers in poor urban and rural communities, up from $32.5-million in fiscal 2000.
* $50-million for a new program, which would be run by the Department of Commerce, to increase access to computers and the Internet in the homes of poor families. The White House said it was working with non-profit organizations and businesses to come up with an effective way to design the program.