The US Department of Education has just published a call for proposals for FIPSE (Fund for the Improvement of Postsecondary Education) grants which includes 1 area of national need centered on the advancement, understanding, and implementation of AI in post-secondary education.
Within this area of national need, $25m in funding (~$1-4m per grant) is allocated to each of these Absolute Priorities (APs):
- Absolute Priority 1 – Advancing the Understanding of Artificial Intelligence in Postsecondary Education. This AP will fund projects that help colleges and universities better understand and use AI to improve teaching, learning, and student success.
- Absolute Priority 2 – Ensuring Future Educators and Students Have Foundational Exposure to AI and Computer Science. This AP will fund projects that train future and current teachers—especially those in teacher-prep programs—to effectively teach about and with AI.
Given the extremely small window for proposals (Dec 3 2025 deadline!), there has been a lot of buzz, frustration, and questions about this funding opportunity.
The most common question I’ve heard from institutions is, “Can funds be used to license AI software.”
The short answer is yes — if AI software is a critical part of a project (see project award criteria below).
The most common question I’ve heard from ed techs is, “Can I help institutions put together a proposal?”
I’m not an attorney, but assuming the institution and the proposal adhere to strict federal regulations (especially around competition), the answer is perhaps. At the very least, ed techs should be able to advise customers based on their domain expertise.
There are many more questions addressed in the FAQ below.
NOTE: This FAQ represents my interpretation of the FIPSE grant. Always rely on the actual language and regulations put out by the federal government:
- Applications for New Awards; Fund for the Improvement of Postsecondary Education-Special Projects (FIPSE-SP)
- PDF FIPSE Grant Notice on the Federal Register
FAQ
What are the “areas of national need” that this FIPSE Special Projects Program is focused on?
1) advancing the understanding of and use of Artificial Intelligence (AI) technology in postsecondary education,
2) promoting civil discourse on college and university campuses,
3) promoting accreditation reform, and
4) supporting capacity-building for high quality short-term programs.
How much $ is being allocated to AI (national need 1)?
$50 million split evenly across the 2 Absolute Priorities (full text of these below).
Who is eligible for these grants?
“I]nstitutions of higher education, or consortia thereof [including SEAs & LEAs], and such other public agencies and nonprofit organizations”.
Can an institution apply for more than one grant?
Sortof: An HEI can be the lead on only one grant per national need (e.g. either AP 1 or 2), but can be a partner on other applications.
How long is the project period?
Up to 48 months.
How much can one project receive?
The estimated range of awards for AP 1 & 2 = $1m – $4m total. $4m is the max.
Is cost-sharing or matching required?
No.
When are proposals due?
Dec 3 11:59:59 p.m Eastern Time
How long should a proposal be?
35pp or less.
Can these funds be used to license software?
Yes, as part of a project that meets award criteria.
Adoption of AI technology is implicit in the grant and there is nothing in the grant that says software can not be included in budgets.
Further, this July 22, 2025 Dear Colleague letter, while preceding this grant announcement, clearly states that federal discretionary grant funds can be used for AI technology.
That said, HEIs must evaluate and select vendors fairly, as described in Federal code § 200.319 Competition (c.)6. This suggests that a grant proposal should not specify the name brand of a single application, but can either (1) specify budget for AI software generally during the proposal stage, and then fairly evaluate and select a vendor, or (2) fairly evaluate and select a vendor ahead of the proposal stage.
Can we use AI to help generate our proposal?
Yes. “The use of AI in the development of grant application materials is allowable. Applicants submitting a grant application must certify on the standard application form to the ‘true, complete, and accurate’ nature of all the contents of their grant application, regardless of whether it is generated by AI.”
What should a proposal look like? / How should our proposal be submitted?
Applications must be submitted online using a Grants.gov shared Workspace.
See Common Instructions & Info for format instructions, necessary institutional information.
Any narrative sections and all other attachments should be in PDF format (no password protection).
While not full proposals, you could also check out recent post-secondary abstracts for winning projects on other topics as examples:
What criteria will be used to evaluate proposals?
The following (summarized) criteria are worth a total of 100 points:
- Significance (30 pts)
- Innovativeness (15 pts)
- Outcomes (15 pts)
- Project design (45 pts)
- Integration (15 pts)
- Replicability (15 pts)
- Iteration / Continuous improvement (15 pts)
- Management plan (10 pts)
- Evaluation / evidence (15 pts)
- Evaluation methods (5 pts)
- Feedback (5 pts)
- Replication guidance (5 pts)
See pp 30-32 for details.
Additional evaluation considerations include…
- Past performance on previous awards;
- Risk assessment (especially for grants over $250k);
- Willingness to open license & disseminate any newly developed work (not pre-existing works).
What are performance / reporting requirements?
Projects must “propose project-specific performance measures and performance targets” versus a baseline measurement.
Reports are required annually and at the end of the project including performance and financials.
For specific requirements, see www.ed.gov/fund/grant/apply/appforms/appforms.html
What’s the full language of Absolute Priority 1?
Absolute Priority 1 – Advancing the Understanding of Artificial Intelligence in Postsecondary Education.
Priority: Projects or proposals to improve academic instruction and student learning, including efforts designed to assess the learning gains made by postsecondary students (section 744(c)(2)) of the HEA), through one or more of the following:
(a) Supporting the integration of AI literacy skills and concepts into teaching and learning practices to improve educational outcomes for students, including instruction about how to use AI responsibly, and how to detect AI generated disinformation or misinformation online; and
(b) Partnering with State Educational Agencies (SEAs) or Local Educational Agencies (LEAs) to do one or more of the following:
(i) use AI technology to provide high-quality instructional resources, high-impact tutoring, and college and career pathway exploration, advising, and navigation to improve educational outcomes.
(ii) integrate AI-driven tools into classrooms to personalize learning, improve student outcomes, and support differentiated instruction. This integration may include, but is not limited to, adaptive learning technologies, virtual teaching assistants, tutoring, and data analytics tools to support student progress.
(iii) utilize AI in the classroom and/or for school operation efficiency, including but not limited to: improving teacher training and evaluation, reducing time-intensive administrative tasks, or improving instruction or services for students with disabilities.
What’s the full language of Absolute Priority 2?
Absolute Priority 2: Ensuring Future Educators and Students Have Foundational Exposure to AI and Computer Science.
Priority: Projects or proposals to leverage AI to improve teacher preparation by doing one or more of the following:
(a) Deliver AI and computer science credentials in rural communities;
(b) Embed AI and computer science into an institution of higher education’s general preservice or in-service teacher professional development or teacher preparation programs;
(c) Provide additional support for teacher preparation programs that are preparing future computer science educators in K-12 education;
(d) Expand offerings of AI and computer science courses as part of an institution of higher education’s general education and/or core curriculum;
(e) Provide resources and support for the use of AI in teacher preparation programs;
(f) Partner with SEAs and/or LEAs to provide resources to K-12 students in foundational computer science and AI literacy, including through professional development for educators; and (g) Partner with SEAs and/or LEAs to encourage the provision of dual-enrollment course opportunities so that students can earn postsecondary credentials and industry-recognized credentials in AI coursework concurrent with their high school education.
What happens if some of the grant money is not awarded?
Implied that the ED may award money later; “For FY 2025 and any subsequent year in which we make awards from the list of unfunded applications from this competition…”
What’s Your Take?
If you’re a professional grant reader with experience in FIPSE grants, or an institution or AI company working on a proposal, we’d love to hear your interpretation or further questions in the comments below.