The U.S. Department of Education issued new guidance on July 25 to recipients of agency funding grants to harness artificial intelligence technologies to improve educational outcomes.

In a Dear Colleague Letter (DCL), the department outlined how AI can be responsibly integrated across key educational functions and affirmed that Federal grant funds may be used for those purposes when aligned with existing laws and regulations.

The department emphasized that AI technologies – when deployed ethically and transparently – have the potential to transform classroom learning and operational systems.

Specific uses supported under current programs include AI-based instructional materials, AI-enhanced tutoring services, and tools that aid in college and career pathway exploration, the Education Department said.

At the same time, Education Secretary Linda McMahon announced her fourth proposed supplemental grantmaking priority that is aimed at advancing the responsible use of AI in education.

Published in the Federal Register on July 25, the proposed priority is open for public comment through August 20.

After the comment period closes, the department will respond to feedback and finalize the notice of priorities, which will guide future discretionary grant competitions.

The new priority builds on McMahon’s three previously announced focuses: evidence-based literacy, expanding education choice, and returning education governance to the states.

The AI priority targets integrating AI into teaching practices, expanding AI and computer science education, and training educators in AI fundamentals.

“Artificial intelligence has the potential to revolutionize education and support improved outcomes for learners,” said McMahon.

“It drives personalized learning, sharpens critical thinking, and prepares students with problem-solving skills that are vital for tomorrow’s challenges,” she said. “Today’s guidance also emphasizes the importance of parent and teacher engagement in guiding the ethical use of AI and using it as a tool to support individualized learning and advancement.”

The Education Department’s guidance and proposed priority are part of the Federal government’s broader response to President Trump’s April 23 Executive Order on Advancing Artificial Intelligence Education for American Youth, which calls for integrating AI into schools while maintaining safeguards and public trust.

The Department of Education is also exploring how AI can improve its own systems. Federal Student Aid has asked current and prospective vendors how AI might be used to detect fraud, improve service delivery, and help students navigate postsecondary pathways.

Read More About