AI Upskill Accelerator Pilot Program

The AI Upskill Accelerator Pilot Program is administered by the U.S. Economic Development Administration (EDA), a bureau within the U.S. Department of Commerce that focuses on fostering economic growth and resilience in American communities. This program is authorized under the Economic Adjustment Assistance (EAA) authority and the Water Resources Development Act of 2024, positioning it as a strategic federal investment aimed at strengthening the national workforce in response to rapid advancements in artificial intelligence technologies. The initiative reflects federal priorities outlined in the national AI Action Plan and broader workforce development strategies that emphasize equipping American workers with skills necessary to remain competitive in a technology-driven economy. The primary purpose of this program is to support the development and implementation of industry-led workforce training programs that focus on artificial intelligence skills. These programs must be structured through sectoral partnerships, meaning they bring together employers, training providers, and other stakeholders within a specific industry to collaboratively design and deliver training aligned with real workforce needs. The program aims to ensure that workers gain practical, in-demand AI competencies that directly translate into employment opportunities, while also enabling businesses to integrate AI tools into their operations to enhance productivity and competitiveness. Funding under this opportunity is designed to support a range of activities across three potential phases: system development, program design, and program implementation. While applicants may include early-stage planning and system-building activities, all proposals are required to include program implementation that delivers actual workforce training. Allowable uses of funds include curriculum development, training delivery, participant support services, staffing, equipment purchases, and evaluation efforts. However, all projects must demonstrate clear alignment with industry demand, include measurable outcomes, and ensure that training leads to job placement or advancement opportunities. EDA anticipates awarding approximately 5 to 8 grants, with individual awards ranging from $1 million to $8 million and a total program funding level of approximately $25 million. Projects are expected to run between 24 and 36 months, with training activities beginning no later than one year after the award date. A cost share is required, with a maximum federal investment rate of 60 percent, meaning applicants must secure matching funds to cover the remaining project costs. Applicants must also demonstrate that they meet EDA’s “Special Need” criteria, which in this case relates to the economic significance of the targeted industry and the role of AI within that sector. Eligible applicants include a broad range of public and nonprofit entities such as state and local governments, institutions of higher education, nonprofit organizations, economic development organizations, and public-private partnerships. For-profit entities and individuals are not eligible to apply directly. Applications must be submitted electronically through EDA’s EDGE system and include standard federal forms such as the SF-424, ED-900, budget narrative, and documentation of matching funds. Applicants must also demonstrate alignment with a regional Comprehensive Economic Development Strategy or equivalent plan. Applications are accepted on a rolling basis until July 10, 2026, under the overarching PWEAA Notice of Funding Opportunity. Submissions are reviewed as they are received, and EDA evaluates proposals based on criteria such as feasibility, stakeholder engagement, economic impact, workforce outcomes, and alignment with investment priorities. Workforce-specific proposals receive additional weighting based on their ability to demonstrate job placement outcomes and employer commitments. EDA encourages applicants to design programs that include robust evaluation mechanisms, scalable models, and strong employer engagement. Contact for inquiries is available via the program email inbox, and applicants are advised to review the AI Upskill Addendum within the PWEAA NOFO for full requirements and guidance. This program represents a significant federal effort to bridge the gap between emerging AI technologies and workforce readiness across the United States.

Align training with employer demand; demonstrate measurable job placement outcomes; build strong sector partnerships; include clear evaluation metrics