US Federal News Bureau

US Education Department Puts AI Literacy at the Heart of New $50M Grant Program

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Written by: CDO Magazine Bureau

Updated 11:05 AM UTC, Fri November 28, 2025

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The U.S. Department of Education is elevating AI literacy as a central focus in one of its key higher-education grant programs, according to an official update.

The department seeks proposals that integrate AI literacy into teaching, support responsible AI use, counter AI-generated misinformation, and build partnerships with state or local education agencies. 

Partner organizations should use AI to deliver quality instructional resources, personalize learning, enhance operational efficiency, and improve instruction or services for students with disabilities.

Created in 1972 and administered by the Office of Postsecondary Education, the Fund for the Improvement of Postsecondary Education (FIPSE) provides grants to higher education institutions, consortia of such institutions, and other public or private nonprofit organizations that the Secretary deems appropriate.

These grants support innovative projects that address one or more national needs identified by the Secretary. This year, the program will award $50 million in grants on December 31 to institutions launching AI-driven projects aimed at strengthening teaching, learning, and student outcomes, as well as to schools expanding access to AI and computer science coursework.

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