Funding
How schools pay for AI readiness
For U.S. public, private, and charter schools, digital literacy and teacher training on AI are allowable uses of funds most schools already receive. Here is where the money lives. Outside the U.S., we can research what assistance may be available in your country.
Four federal sources, in plain language
Federal funds pay for allowable activities, not for "AI" as such. The U.S. Department of Education confirmed in July 2025 that AI instructional materials, educator training, tutoring, and advising qualify where the program allows.
Title II-A: Supporting Effective Instruction
Fits: Professional development for teachers and leaders on AI literacy and classroom integration: the Accelerator leadership course and every PD hour.
Watch: Student-facing tools are generally not a Title II-A purchase.
Source: ISTE+ASCD on Title II-A funding of AI professional learning (opens in a new tab)
Title IV-A: Student Support and Academic Enrichment
Fits: "Effective use of technology" names digital literacy for all students, which is why Title IV-A digital literacy funding is the usual home for a TK-8 curriculum such as TechPlus AI and the training that comes with it. Well-rounded education funds can cover courses such as the CEO programs.
Watch: No more than 15% of the technology portion may buy devices, equipment, software, or digital content (ESSA Sec. 4109(b)). Sustained PD, not one-day workshops, and a needs assessment first.
Source: Texas Education Agency, Title IV-A technology infrastructure guidance (opens in a new tab)
Title I-A: Improving Basic Programs
Fits: AI tutoring and instructional materials when they are part of a schoolwide or targeted plan to raise achievement for eligible students.
Watch: Supplement, not supplant. Tie the purchase to the school improvement plan.
Source: AALRR summary of the July 2025 Dear Colleague Letter (opens in a new tab)
Federal AI priority for discretionary grants
Fits: Since May 13, 2026, the U.S. Department of Education can award extra points in discretionary competitions for AI literacy, age-appropriate K-12 AI education, and educator training.
Watch: Projects must still meet each program’s own eligibility rules.
Source: Afterschool Alliance on the final supplemental priority (opens in a new tab)
What changed in 2025 and 2026
Three federal moves turned AI readiness into a fundable priority.
April 2025
Executive Order 14277 makes AI literacy for American youth national policy and directs the Secretary of Education to prioritize AI in discretionary grants for teacher training.
July 2025
The U.S. Department of Education tells grantees that existing federal funds may be used for AI instructional materials, educator and family training, AI-enhanced tutoring, and advising, where the program allows.
May 2026
The final supplemental priority "Advancing Artificial Intelligence in Education" takes effect, with strengthened age-appropriate use language and educator training.
November 2026
FY2027 funding is not settled. A continuing resolution holds programs at FY2026 rates through December 11, 2026, and a House committee bill would eliminate Title II-A; that bill has not become law. Confirm your allocations before you build a plan on them.
States are writing it into law
Thirty-five states and Puerto Rico have official K-12 AI guidance. A growing number require a policy. Private and faith-based schools are usually exempt, but they compete with public and charter schools that now publish one.
Ohio
Every district, community school, and STEM school had to adopt a board-approved AI policy by July 1, 2026; a state model policy covers acceptable use, integrity, data, instruction, and vendor review.
Tennessee
Districts and public charter schools had to adopt an AI-use policy by the 2024-25 school year.
Utah
A 2026 law requires a state model AI policy, local adoption in a public meeting, parent notification when generative AI is used in instruction, and no AI-only grading or high-stakes decisions.
California
AB 2876 adds AI literacy to the math, science, and history-social science frameworks at their next revision; the SB 1288 working group finished its guidance report in fall 2026.
Idaho, Maryland, Oklahoma, Virginia
2026 laws range from required local board policies (Idaho) and a district AI coordinator plus a state evaluation rubric (Maryland) to parent opt-outs and annual disclosure of AI tools (Oklahoma) and a funded pilot (Virginia).
Sources
- Congressional Research Service, status of FY2027 appropriations
- Association of California School Administrators, Federal report: good news, bad news on federal funding (July 2026)
- AI for Education state guidance tracker
- Ohio Department of Education and Workforce
- K-12 Dive on 2026 state AI policy laws
- California Department of Education AI working group
We help you find the money. Let's get creative.
We can help research, write, and win grants and outside funding, and we can help you bring families into your technology and AI vision with a Parent Night.
Grant research
We find federal, state, and private grants that fit your school, your students, and your plan, and track the deadlines.
Grant writing
We help write the application: the need, the plan, the budget, and the evidence reviewers look for.
Outside funding
Foundations, local businesses, alumni, booster clubs, and PTAs. We help you make the case and make the ask.
Parent AI Night
An evening that shows families the school's technology and AI vision, answers their questions, and turns parents into partners.
Student pitch night
Students from the CEO programs pitch to parents and local business owners, a showcase that can double as a fundraiser.
Business partners
Local companies that sponsor a lab, a course, or a pitch night, with the recognition that makes it worth their while.
We help you apply and make the case; funders decide the awards.
What we hand your business office
Principals should not have to become grant writers to buy a curriculum. We write the justification with you.
- Budget justification language that mirrors the statute for Title II-A and Title IV-A
- A one-page board summary of what the school is buying and why
- Agendas, attendance, and outcomes for every PD hour, ready for a Title II-A file
- For California districts, goal and action language that drops into a Local Control and Accountability Plan
- A funding estimate inside your free readiness report, based on your school type and enrollment
Questions school leaders ask
Including the ones where the honest answer is no.
We are a private or Catholic school. Does any of this apply to us?
Yes, through equitable services. Title I-A, II-A, and IV-A each require districts to provide services, including professional development, to eligible private school students and teachers after consultation. Ask your district’s equitable services contact, and bring our one-page summary.
We are an international school. Does any of this apply to us?
The programs on this page are U.S. federal and state funds for U.S. public, private, and charter schools. Outside the U.S., we can research what assistance may be available in your country. Tell us your country in the briefing.
Can E-Rate pay for AI curriculum or training?
No. E-Rate funds internet access and internal connections only. We never market our programs as E-Rate eligible.
Is any of this guaranteed?
No. Federal funds pay for allowable activities under each program’s rules, and your district, diocese, or state confirms eligibility. We give you the language and the documentation; a funding advisor should review your plan.
What changed in 2025 and 2026?
Three things: a presidential executive order making AI literacy national policy, a Department of Education letter confirming existing funds may support AI training and materials, and a final grant priority rewarding AI literacy and educator training. Together they moved AI readiness from a nice idea to a fundable one.
Where does the funding estimate in the readiness report come from?
From your school type, enrollment band, and the programs that commonly fund digital literacy and professional development. It is an estimate to start a conversation with your business office, not a promise.
Still have a question? Call 888-283-3213 or, outside the U.S., message us on WhatsApp.
This page is general information about federal and state programs as we understand them on November 5, 2026. It is not legal, tax, or grant advice, and it is not a guarantee of funding. Eligibility depends on your school type, your state, and each program’s rules. Confirm with your district, diocese, or a funding advisor.
Your readiness report includes a funding estimate
Five minutes, eight questions, and a first look at which programs could pay for your plan.