Prime Highlight
- The U.S. Department of Education will invest $167 million in 2025 to modernize higher education.
- Under Secretary Nicholas Kent said the initiative represents a transformative shift toward innovation, free expression, and workforce readiness in the national education system.
Key Facts
- $50 million will fund AI-driven projects to improve student outcomes and expand computer science access, with 25 expected grant awards ranging from $1 million to $4 million.
- The Workforce Pell Grants initiative will provide $50 million to colleges for short-term, high-quality training programs developed in partnership with employers.
Background
The US Department of Education will invest $167 million in 2025 to reshape higher education through artificial intelligence, accreditation reform, and workforce development. The plan, launched under the Fund for the Improvement of Postsecondary Education (FIPSE), is a move to make higher education institutions compatible with the tech-based world and the changing job market requirements.
Artificial intelligence will lead the agenda, receiving $50 million across two grant priorities. The first will fund projects that use AI to improve student outcomes and classroom learning, while the second will expand AI and computer science exposure for educators and students. Each grant will range from $1 million to $4 million, with about 25 awards expected nationwide.
Accreditation reform will receive $7 million, supporting institutions that plan to change accreditors or establish new accrediting agencies. The Department said this move will foster greater flexibility and competition in the accreditation process.
Colleges will use another $50 million from the Workforce Pell Grants initiative to create short-term, high-quality workforce training programs. This funding will help them partner with employers and offer more hands-on learning opportunities.
Accredited institutions, consortia, and nonprofit organizations can apply. Applications close on December 3, 2025, and awards will be announced by December 31, 2025.
Under Secretary of Education Nicholas Kent said the initiative marks a transformative shift in US higher education, promoting innovation, free expression, and workforce readiness to restore confidence in the national education system.
