; and (II) shall comply with the requirements of this subsection, including the requirement under paragraph (2)(B). (iii) The assurances required under subsection (e). (D) Awards (i) Amount of grant A planning grant awarded to an eligible State under this paragraph shall be determined according to the formula under subsection (d)(3)(A)(i). (ii) Duration (I) In general Except as provided in subclause (II), with respect to a planning grant awarded to an eligible State under this paragraph, the State shall expend the grant funds during the 1-year period beginning on the date on which the State is awarded the grant funds. (II) Exception The Assistant Secretary may grant an extension of not longer than 180 days with respect to the requirement under subclause (I). (iii) Challenge mechanism The Assistant Secretary shall ensure that any eligible State to which a planning grant is awarded under this paragraph may appeal or otherwise challenge in a timely fashion the amount of the grant awarded to the State, as determined under clause (i). (E) Use of funds An eligible State to which a planning grant is awarded under this paragraph shall, through the administering entity for that State, use the grant funds only for the following purposes: (i) To develop the State Digital Equity Plan of the State under this subsection. (ii) (I) Subject to subclause (II), to make subgrants to any of the entities described in paragraph (1)(D) to assist in the development of the State Digital Equity Plan of the State under this subsection. (II) If the administering entity for a State makes a subgrant described in subclause (I), the administering entity shall, with respect to the subgrant, provide to the State the assurances required under subsection (e). (d) State capacity grants (1) In general Beginning not later than 2 years after the date on which the Assistant Secretary begins awarding planning grants under subsection (c)(3), the Assistant Secretary shall each year award grants to eligible States to support— (A) the implementation of the