Artificial Intelligence for American Competitiveness and Economic Security (AI-ACES) in South Asia

The Artificial Intelligence for American Competitiveness and Economic Security in South Asia program is a federal funding opportunity administered by the Bureau of South and Central Asian Affairs within the U.S. Department of State. This initiative is designed to advance United States strategic interests in South Asia by promoting the adoption and deployment of American-developed artificial intelligence technologies across critical infrastructure and key economic sectors. The program is positioned within a broader geopolitical context, aiming to counter the growing technological influence of competing nations by strengthening regional reliance on secure, U.S.-aligned AI systems and standards. The core purpose of this opportunity is to support large-scale, multi-country implementation of AI systems that enhance data governance, cybersecurity, and workforce capabilities. Applicants are expected to operate across at least three South Asian countries, including options such as Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The program emphasizes both technical deployment and institutional capacity building, including training programs, mentorship, and collaboration with government, academia, and private sector stakeholders. Activities include procuring AI technologies, developing workforce pipelines, and establishing policy frameworks that promote secure and interoperable systems aligned with U.S. standards. Funding for this opportunity is provided through Economic Support Funds and will be issued as a cooperative agreement, reflecting substantial involvement by the Department of State throughout implementation. The total available funding is approximately five million dollars, with a single anticipated award ranging from two million to five million dollars. The period of performance may extend up to thirty six months, with an anticipated start date of late September 2026. Cost sharing is not required and does not influence evaluation outcomes, although applicants may voluntarily include it if aligned with allowable cost principles. Eligible applicants include a broad range of organizational types such as U.S. and foreign nonprofit organizations, higher education institutions, for profit entities, public international organizations, and foreign public entities. Applicants must demonstrate technical expertise in AI deployment and governance, as well as experience operating in the South Asian region. Additional eligibility requirements include compliance with federal regulations, active registration in SAM.gov, and absence of exclusions or outstanding federal debt. The program also requires adherence to multiple federal policies, including anti discrimination, trafficking in persons compliance, and restrictions on certain technologies and activities. The application process requires submission through grants.gov or MyGrants by August 2, 2026 at 11:59 PM Eastern Time. Applicants must provide a comprehensive proposal package including standard federal forms, a proposal narrative, detailed budget and justification, monitoring and evaluation plans, and supporting documentation such as letters of support. The proposal narrative must clearly articulate the problem statement, program design, objectives, activities, outcomes, and risk mitigation strategies. Evaluation criteria include program quality and feasibility, organizational capacity, planning effectiveness, budget justification, monitoring and evaluation strength, and sustainability of outcomes. Applications undergo a multi stage review process beginning with technical eligibility screening followed by a merit review panel that scores proposals on a one hundred point scale. Final award decisions consider alignment with U.S. foreign policy priorities and geographic distribution. Successful applicants will be notified by October 30, 2026, and awards will be administered under cooperative agreement terms with ongoing federal oversight. Recipients must comply with reporting requirements, financial management standards, and branding guidelines throughout the project lifecycle.

Align proposal closely with evaluation criteria including feasibility, organizational capacity, and measurable outcomes; ensure strong monitoring and evaluation plan; demonstrate regional and technical expertise