Commerce Launches $25M Pilot to Upskill American Workers in AI

The Commerce Department’s Economic Development Administration (EDA) said on Monday it will invest approximately $25 million in a new national competition aimed at upskilling American workers in artificial intelligence (AI) technologies. 

The AI Upskill Accelerator Pilot Program aligns with the Trump administration’s AI Action Plan and will fund industry-led workforce partnerships focused on preparing workers for AI-related roles tied to regional economic growth. EDA said the program is intended to help businesses improve productivity while expanding access to AI-driven jobs. 

“AI Upskill grants create a win for workers, businesses, and education and training providers,” the EDA said. 

Under the competition, EDA said it plans to award between five and eight grants for non-construction projects, with awards ranging from $1 million to $8 million over periods of 24 to 36 months. Training programs funded through the initiative must launch within one year of the award date. 

The EDA said the program reflects a growing federal focus on AI workforce adoption rather than solely AI research and development. In the notice of funding opportunity, the agency said that the “bottleneck” to realizing AI’s full economic potential is “the limited and slow adoption of AI,” particularly among large and established industries such as healthcare and manufacturing. 

The agency also emphasized that AI is intended to complement workers rather than replace them, while warning that rapid technological change will require faster and more agile workforce training systems. 

“AI is increasingly becoming a core driver of productivity and growth across industries. It is essential to equip American workers with the AI skills needed to ensure that regions can attract investment, adopt advanced technologies, and sustain long-term economic growth,” said Deputy Assistant Secretary and Chief Operating Officer Ben Page, who is performing the nonexclusive duties and functions of the assistant secretary of Commerce.  

The grant program is structured around sectoral partnerships, which are employer-led coalitions that may include workforce boards, colleges, training providers, local governments, and community organizations. EDA said applicants must demonstrate that AI is already reshaping operations within their regional industries, and that workers require AI-related upskilling to maintain competitiveness. 

Eligible projects must provide AI skills training and services that help participants complete training and secure employment, and they must track workforce outcomes. All projects must fund training implementation; funds can also be used for program design and/or workforce system development. 

The EDA said applicants must meet the agency’s “Special Need” criteria to qualify, and projects can receive up to 60% federal investment support.