U.S. Department of Education Issues Guidance on Using Federal Grant Funds for AI in Education
On July 22, 2025, the U.S. Department of Education (USDOE) released a Dear Colleague Letter (DCL) providing clear guidance on how federal grant recipients can use funds to integrate artificial intelligence (AI) into educational settings. This move follows President Trump’s Executive Order from April 23, 2025, titled “Advancing Artificial Intelligence Education for American Youth,” reflecting the federal government’s push to bring AI tools into classrooms and learning environments.
The DCL states that school districts may use existing federal grant funds to support AI projects as long as they comply with all relevant laws and regulations. Funds can be allocated to develop or purchase AI-powered instructional tools and to train educators, providers, and families on their effective use. AI applications can help students explore career options, provide virtual academic advising, and assist educators in identifying students who need extra support.
Key Principles for Responsible AI Use in Schools
The USDOE emphasizes that while AI offers benefits, it must be used responsibly. School districts must ensure compliance with federal funding rules, including privacy protections under the Family Educational Rights and Privacy Act (FERPA). Transparency and engagement with stakeholders—such as parents, educators, and students—are crucial when adopting AI systems. Additionally, AI tools should be accessible to all members of the educational community to promote equity.
Expanding Federal Support for AI in Education
Secretary of Education Linda McMahon has announced a proposed supplemental priority focused on advancing AI in education. Published in the Federal Register, it invites public comments through August 20, 2025. This priority outlines key goals including:
- Integrating AI literacy into teaching to enhance student outcomes;
- Expanding AI and computer science education across K-12 and higher education;
- Supporting professional development for educators on AI and computer science fundamentals;
- Using AI to personalize learning and support differentiated instruction at all student levels.
The proposal also highlights AI’s role in improving classroom efficiency, reducing administrative tasks, and supporting teacher training and evaluation.
Practical Steps for School Districts
School districts should view the USDOE guidance as both an opportunity and a compliance requirement. Training educators in AI literacy is essential, as is teaching students how to effectively use AI tools. At the same time, districts must ensure all AI initiatives funded by federal grants meet responsible use standards, especially regarding data privacy, accessibility, and stakeholder involvement.
Districts that have not yet done so should consider developing clear policies or guidance documents about AI use within their schools. This will help ensure transparency and consistency as AI becomes a more common part of education.
For educators and administrators looking to deepen their AI knowledge and skills, resources like Complete AI Training’s latest AI courses offer practical learning options tailored for education professionals.
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