New guidance outlines how to use grant funds for AI

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The U.S. Department of Education this week issued guidance for schools using formula and discretionary grant funds to improve academic outcomes through artificial intelligence.

In a Dear Colleague Letter, the department encouraged grantees to explore how they can use AI to enhance teaching and learning without replacing the role of educators. It also outlines three federally-approved use cases for AI and principles for responsible use.

According to the department, AI may be used across these key educational functions:

1. AI-based high-quality instructional materials
Federal education funds may be used to:

  • Develop or procure AI-powered instructional tools that adapt to learner needs in real time
  • Expand access to high-quality, personalized learning materials across all subjects, grade levels and learning environments
  • Train educators, providers and families to use AI tools effectively and responsibly

2. AI-enhanced high-impact tutoring
Grantees may support:

  • Intelligent tutoring systems that provide individual academic support with real-time assessment
  • Hybrid models where AI-based learning platforms complement human tutors
  • Diagnostic and scheduling tools that use AI to match learners with tutoring services based on need

3. AI for college and career pathway exploration, advising and navigation
Funds may also be directed toward:

  • Platforms that leverage AI to help students identify career interests, explore pathways and make informed choices
  • Virtual advising systems that guide students through course planning, financial aid and transitions to postsecondary education or careers
  • Predictive models that support educators in identifying students in need of additional advising or support services

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Principles for responsible use

The department supports the following principles for all AI-related educational initiatives:

Educator-led: AI should support teachers, providers, tutors, advisors and education leaders

Ethical: Within the K12 realm in particular, educators should help students navigate AI to be able to evaluate the validity of AI outputs, to understand the appropriate use of AI in the context of social media, to learn with AI, and to leverage the promise of AI to be contributing members of a free society.

Accessible: AI tools or systems should be accessible for those who require digital accessibility accommodations, including children, educators, providers and family members with disabilities.

Transparent and explainable: Stakeholders, especially parents, should understand how systems function and participate meaningfully in decisions about the adoption and deployment of new technologies.

Data-protective: Systems must comply with federal privacy laws, including the Family Educational Rights and Privacy Act.

“By teaching about AI and foundational computer science while integrating AI technology responsibly, we can strengthen our schools and lay the foundation for a stronger, more competitive economy,” Education Secretary Linda McMahon said in a statement.

Micah Ward
Micah Wardhttps://districtadministration.com
Micah Ward is a District Administration staff writer. He recently earned his master’s degree in Journalism at the University of Alabama. He spent his time during graduate school working on his master’s thesis. He’s also a self-taught guitarist who loves playing folk-style music.

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