Federal grant priorities push AI in schools

The U.S. Education Department has finalized a rule that lets it give extra weight to artificial intelligence projects in future federal grant competitions starting May 13. (federalregister.gov) The rule applies across discretionary grant programs, which are the competitive grants districts, colleges, and other applicants seek for specific projects. The department said it published the proposal on July 21, 2025, and finalized it on April 13, 2026. (federalregister.gov) For kindergarten through twelfth grade schools, the priority points toward proposals that expand artificial intelligence and computer science education, build artificial intelligence into teacher preparation, and train educators to use it in regular subject classes. (edsource.org) The final text also names early intervention, special education, and related services for children and students with disabilities, along with dual-enrollment pathways that let high school students earn credentials in artificial intelligence. (federalregister.gov) This did not start with the April rule. President Donald Trump signed Executive Order 14277 on April 23, 2025, directing the Education Department to prioritize artificial intelligence in discretionary grants for teacher training and to promote artificial intelligence literacy and early exposure for students. (federalregister.gov) The department followed that order on July 22, 2025, with a Dear Colleague letter telling current and future grantees that existing federal funds could support artificial intelligence uses if they met program rules. That guidance listed artificial intelligence tutoring, instructional materials, and college-and-career advising as examples. (ed.gov) The funding push is already showing up in awards. On January 5, 2026, the department said it had released $169 million through the Fund for the Improvement of Postsecondary Education, including grants for colleges to embed artificial intelligence tools and content in programs such as nursing and information technology. (ed.gov) Supporters in school technology groups want more money set aside specifically for this work. Keith Krueger of the Consortium for School Networking told K-12 Dive the department should create a separate artificial intelligence funding stream “to ensure long-term sustainability and avoid reducing support for other critical programs.” (k12dive.com) Some states are framing the issue more broadly than the federal rule does. California’s updated artificial intelligence guidance, released in January 2026, tells local school systems to address data privacy, academic integrity, educator support, equity, and human-centered learning as they adopt the technology. (cde.ca.gov) The federal rule closes one step in a longer shift: districts and colleges that want competitive Education Department grants now have a new incentive to package artificial intelligence projects as workforce, classroom, and student-support priorities. (federalregister.gov)