Dear Colleague Letter on federal grant funds and AI in education (U.S. Department of Education)

Summary

On July 22, 2025, the Department of Education issued a Dear Colleague Letter to current and prospective grant recipients confirming that existing formula and discretionary grant funds may support AI in education where uses comply with the applicable statutes and regulations. It calls for AI use to be educator-led, ethical, accessible, transparent and compliant with privacy law, including FERPA. The letter followed Executive Order 14277 of April 23, 2025, on AI education for youth. The Department proposed a supplemental grant priority on advancing AI in education at the same time; the final priority was published on April 13, 2026 (91 FR 18774) and took effect on May 13, 2026.

Key dates

1. July 22, 2025Takes effect
2. July 22, 2025Issued
3. October 16, 2026Checked against sources
4. October 21, 2026Checked against sources

Developments are added when the record is reviewed. Next review: October 16, 2027.

Evidence

Each passage is quoted from its source. The quoted passages are re-checked against the live pages every month.

1. On July 22, 2025, the U.S. Department of Education ("USDOE") issued guidance regarding the use of artificial intelligence in educational settings through a Dear Colleague Letter ("DCL") to current and future federal grant recipients.

   Supports: Date and nature of the letter

   This guidance follows President Trump's April 23, 2025 Executive Order on "Advancing Artificial Intelligence Education for American Youth"

   Supports: Link to EO of April 23, 2025

   Dear Colleague Letter Issued by U.S. Department of Education Regarding Federal Grant Funds to Improve Education Outcomes Using Artificial Intelligence Atkinson, Andelson, Loya, Ruud & Romo Reporting or analysis

2. affirming that existing formula and discretionary education grant funds may be used to support AI initiatives as long as they comply with applicable statutory and regulatory frameworks.

   Supports: Grant funds may be used

   The DCL emphasizes AI use must be educator-led, ethical, accessible, transparent, and privacy-compliant.

   Supports: Responsible-use principles

   Federal Government Provides Education Guidance on AI Funding and Action Plan Fagen Friedman & Fulfrost Reporting or analysis

3. The priority and definitions are effective May 13, 2026.

   Supports: Related final priority effective date

   Final Priority and Definitions-Secretary's Supplemental Priority and Definitions on Advancing Artificial Intelligence in Education Office of the Federal Register (federalregister.gov) Primary source