The digital-by-default policy for government services implemented in many European countries can pose challenges to marginalized citizens, such as people with disabilities. Prior research on electronic inclusion and the digital divide has mainly considered technology-related concerns, such as Internet anxiety, preventing people with disabilities from using digital government services. Yet, these concerns may insufficiently account for the fact that people with disabilities may suspect that governments provide new services only to reduce costs and forgo the need for more meaningful social change. Therefore, we draw from stigma power theory to understand how perceptions of stereotyping and discrimination contribute to the avoidance of digital government services among people with disabilities. Our results indicate that overcoming underutilization of digital government services among people with disabilities requires a holistic approach by addressing technology-related as well as stigma-related concerns.