On July 22, 2025, the U.S. Department of Education (“Department”) Secretary, Linda E. McMahon, issued a Dear Colleague Letter addressing the use of federal grant funds for the “responsible integration of artificial intelligence (AI)” in schools.
Federal Commitment
The Dear Colleague Letter (“Letter”) serves as the Department’s guidance regarding federal formula and discretionary grant funds to support improved educational outcomes through the use of artificial intelligence in the classroom.
According to the Letter, the Department “encourages” recipients of such funds to explore how AI can enhance teaching and learning.” The Letter also emphasizes how AI can be utilized without replacing educators’ crucial role in students’ educational development.
Permitted Uses
The Letter provides that AI may be used for the following educational functions under existing federal education programs:
AI-Based High-Quality Instructional Materials. For example, federal funds may be used to “develop or procure AI-powered instructional tools that adapt to learner needs in real time.” AI tools may also be used to provide “personalized learning materials, tailored across subjects, grade levels, and learning environments.”
AI-Enhanced High-Impact Tutoring. For example, federal fund recipients may support “hybrid models where human tutors are complemented by AI-based learning platforms,” and where AI based learning platforms are used as “diagnostic and scheduling tools.”
AI for College and Career Pathway Exploration, Advising, and Navigation. For example, federal funds may be directed to “platforms that leverage AI to help students identify career interests, explore pathways, and make informed choices,” Thereby supplementing the services provided by guidance and career counselors.
It is important to note, however, that such uses must align with applicable statutory and regulatory requirements. The Department mandates that AI tools using federal funds are educator led and support, rather than replace, teachers and other education providers.
Bottom Line For Schools
The Letter does not specifically mention the April 2025 Executive Order establishing a Task Force for Advancing AI Education. However, it appears to comply with the White House’s direction that the Secretary of Education issue guidance on using educational grants to improve education outcomes using AI technology. The executive order prioritizes discretionary grants for AI implementation for technologies that reduce time intensive administrative tasks, improve teacher training and professional development, and help educators integrate AI into their classroom.
While the Letter signals the Department’s support of effective, safe, and ethical AI use in schools, school administrators must be cautious in the implementation of AI technology in educational settings. The Letter acknowledges that this is a recent technology and its applications in school settings are now becoming known. The Letter’s purpose is to provide a framework through which districts review and consider the implementation of AI technology. This includes careful evaluation and oversight to ensure their schools comply with all federal, state, and local laws.
