ED Offers Guidance on the Use of Federal Grants to Support Learner Outcomes with AI

• By Rhea Kelly
• 07/23/25

The United States Department of Education has provided new guidance on how K-12 and higher education institutions may use federal grant funds "to support improved outcomes for learners through the responsible integration of artificial intelligence." The guidance, issued in response to President Trump's April 23 Executive Order on advancing AI education, focuses on three primary use cases: AI-based high-quality instructional materials, AI-enhanced high-impact tutoring, and AI for college and career pathway exploration, advising, and navigation.

Use 1: AI-Based High-Quality Instructional Materials

According to the July 22 guidance letter, 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; and
• Train educators, providers, and families to use AI tools effectively and responsibly.

Use 2: AI-Enhanced High-Impact Tutoring

Federal funds may be used for:

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

Use 3: AI for College and Career Pathway Exploration, Advising, and Navigation

Federal funds may be used for:

• 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; and
• Predictive models that that support educators in identifying students in need of additional advising or support services.

The letter also offers principles for responsible use of AI in education, emphasizing that initiatives should be educator-led, ethical, accessible, transparent, and compliant with data protection regulations.

"Artificial intelligence has the potential to revolutionize education and support improved outcomes for learners," said Secretary of Education Linda McMahon, in a statement. "It drives personalized learning, sharpens critical thinking, and prepares students with problem-solving skills that are vital for tomorrow's challenges. 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. 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."

For more information, go to the ED site.