U.S. Department of Education Issues Guidance on Using Federal Funds for AI in Schools
The U.S. Department of Education has clarified how K-12 and higher education institutions can responsibly integrate artificial intelligence (AI) using federal funding. On July 22, the Department released guidance confirming that both federal formula and discretionary grant funds are eligible to support AI adoption in classrooms.
This guidance outlines acceptable applications for AI technology while emphasizing the importance of educator oversight and protecting student privacy. The goal is to use AI as a supportive tool for teachers, not as a replacement.
Approved Uses of Federal Funding for AI
Federal funds can be used to support AI in several practical ways:
- Instructional materials powered by AI that adapt in real time to meet individual student needs with personalized content.
- AI-enhanced tutoring systems, including hybrid models that combine human tutors with AI to provide targeted academic support.
- AI platforms that assist with college and career planning, such as helping students select courses, navigate financial aid, and identify those needing extra support through predictive analysis.
All projects must comply with existing laws and regulations. U.S. Secretary of Education Linda McMahon highlighted AI’s potential to improve learning outcomes by driving personalized education, fostering critical thinking, and equipping students with problem-solving skills. She also stressed the importance of involving parents and teachers in ethical AI use decisions.
Principles for Responsible AI Adoption
The Department outlined five key principles to guide AI use in education:
- Educator-led: AI should assist and empower teachers, not replace them.
- Ethical: Students need to learn how to critically evaluate AI outputs and use AI responsibly in social contexts as part of digital citizenship.
- Accessible: AI tools must include accommodations for learners and educators with disabilities.
- Transparent: Parents and stakeholders should understand how AI systems operate and participate in decisions about their adoption.
- Data-protective: AI applications must comply with federal privacy laws such as the Family Educational Rights and Privacy Act (FERPA).
Proposed Supplemental Priority for AI in Education
Alongside the guidance, the Department proposed a supplemental grantmaking priority to promote AI literacy and computer science education. This proposal encourages states and districts to:
- Integrate AI into teaching practices.
- Support professional development to prepare educators for AI tools.
- Use AI to personalize learning experiences while reducing administrative burdens.
The proposal is open for public comment for 30 days via the Federal Register. Final priorities will be announced after reviewing the feedback.
Connection to Federal AI Initiatives
This guidance follows a presidential executive order issued on April 23 that supports advancing AI education for American youth. Beyond guiding schools, the Department is exploring how AI can improve its own operations, including fraud detection and student aid services.
Secretary McMahon summarized the approach: by teaching AI concepts alongside computer science and responsibly integrating AI tools, schools can better prepare students for future challenges and contribute to a stronger economy.
For educators looking to deepen their AI skills and better support students, exploring relevant training and courses can be valuable. Resources like Complete AI Training's latest AI courses offer practical options to build expertise in this area.
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