Education Department prioritizes AI in grant funding decisions
The U.S. Department of Education finalized a rule Monday that will give preference to grant applications focused on artificial intelligence in K-12 schools and colleges. The rule takes effect May 13.
The department will weight applications higher if they propose expanding AI literacy, teaching ethical AI use, or integrating AI into teaching practices that improve student outcomes.
What qualifies for priority funding
The final rule identifies nine categories of AI projects eligible for discretionary grants:
- Age-appropriate AI and computer science education in schools
- AI and computer science lessons embedded in teacher preparation programs
- Professional development for educators to integrate AI into their subject areas
- Dual-enrollment opportunities for high school students to earn college credits or industry credentials in AI
- AI tools to support services for students with disabilities, including early intervention and special education
- AI-driven classroom tools for personalized learning, such as adaptive technology, virtual teaching assistants, tutoring, or student progress analytics
- AI to reduce administrative tasks
- AI for instructional resources, tutoring, or college and career exploration
- AI tools to improve program outcomes
What changed from the proposed rule
Education technology leaders requested a separate funding stream dedicated to AI initiatives and asked the department to develop evaluation frameworks for vetting AI tools on data privacy, evidence-based practices, and accessibility.
The Education Department did not create a separate funding stream. However, it added "the use of AI technology to improve program outcomes" as a priority and said it will consider evidence components in future grant competitions.
The Consortium for School Networking, which represents technology leaders across 2,050 school districts, supported the focus on educator training and AI literacy but warned that prioritizing AI within existing grant programs could reduce funding for other critical areas.
The broader context
AI implementation across school districts remains uneven. A February House subcommittee hearing highlighted that teachers need more support for professional development on AI tools. The Trump administration shut down the Education Department's Office of Educational Technology in 2025, making it harder to dedicate federal resources to such efforts.
Meanwhile, 74% of students said their schools are implementing AI rules in 2026, up from 51% in 2025, according to a recent survey from Gallup, the Walton Family Foundation, and GSV Ventures. Yet a majority of Gen Z K-12 students said AI "will make learning more difficult in the future," even as they use it weekly at higher rates than Gen Z adults.
District leaders are advising superintendents to create dedicated AI leadership roles, integrate AI responsibilities into existing teams, or distribute ownership across school systems, according to education leaders speaking at a March webinar.
For educators looking to build skills in this area, resources like AI learning paths for teachers and broader AI for education resources can help prepare staff for classroom implementation.
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