As reported by K-12 Dive, a final rule issued by the U.S. Department of Education (USDE) on April 13, 2026 will continue to push for artificial intelligence use in classrooms through newly finalized priorities and definitions for school districts and colleges applying for any of the agency’s discretionary grant programs. The rule claims it will support projects that aim to expand the understanding of AI or the appropriate and ethical use of AI in education and within its parameters proposals that call for integrating AI literacy skills into teaching and learning practices that improve student outcomes will be given more weight. 

Under the new rule, which takes effect May 13, other AI grant priorities for K-12 include proposals to:
-Expand age-appropriate AI and computer science education offerings in schools.
-Embed AI and computer science lessons into teacher preparation programs.
-Provide professional development for educators to integrate AI into their subject areas.
-Offer dual-enrollment credit opportunities for high schoolers to earn college credits or industry credentials in AI.
-Use AI to support K-12 services, including early intervention and special education, for students with disabilities and their families.
-Integrate AI-driven tools into classrooms for personalized learning and to improve student outcomes. For example, this could be through adaptive learning technology, virtual teaching assistants, tutoring or data analytics tools on student progress.
-Use AI to reduce time-consuming administrative tasks.
-Use AI for high-quality instructional resources, high-impact tutoring, or exploring college and career pathways.
-Implement AI tools to improve program outcomes.  

Some education technology leaders called for major changes to the proposed rule when issued last July, such as creating a separate additional funding stream for AI education initiatives. Although the USDE acknowledged those requests, it didn’t act on them when issuing the final rule.

For more from K-12 Dive, click here.

On April 3, 2026, the White House released its fiscal year 2027 (FY 2027) budget proposal, which includes $8.5 billion in eliminations and consolidations for selected K-12 programs. It would also legislate the transfer of some responsibilities out of the U.S. Department of Education (USDE).

“The Budget puts the Department of Education (USDE), which has failed the Nation’s children, teachers, and families, on a path to elimination,” the budget proposal said.

As reported by K-12 Dive, the proposed budget requests $76.5 billion for the USDE for FY 2027, compared to an FY 2026 funding level of $79 billion. It would maintain Title I at $18.4 billion and increase special education funding by $539 million, but — similar to the president’s FY 2026 request — it calls for the elimination of some existing grants while consolidating others into single funding streams for states to distribute at their own discretion. It would also eliminate funding for English Language Acquisition.

For example, it proposes consolidating 17 K-12 grant funding streams worth $6.5 billion into a single grant, which the administration said would allow states to spend “based on their needs without Federal prescription.” 

It would cut 12 other programs, totaling $2.1 billion, including: 
-All $70 million for Teacher Quality Partnership grants, often used to diversify the teacher workforce.
-All $7 million for Equity Assistance Centers, established as part of desegregation efforts.
-All $890 million for English Language Acquisition, which helped districts support English language learners and which the budget said would “encourage bilingualism.” 
-All $50 million for the Comprehensive Centers program, which is authorized under ESEA and provides assistance to states and districts on improving instruction and closing achievement gaps.
-A $428 million cut to Migrant Education and Special Programs for Migrant Students, which supports immigrant students.

Many of the proposed cuts and consolidations are similar to those contained in the president’s budget request for FY 2026, much of which Congress ultimately scrapped. 

The proposal would also solidify into legislation the USDE’s efforts to shift career and technical education (CTE) programs and responsibilities to the U.S. Department of Labor. (DOL). While the USDE has already entered an interagency agreement that would do so, the budget request would officially move those programs under the DOL.

For more details from K-12 Dive, click here.

As reported by the Washington Post, the White House has stepped up its push to eliminate the U.S. Department of Education (USDE) by moving it out of the building that has been its headquarters. The U.S. Department of Energy will be moving into the building. The move is seen as the most visible action toward eliminating the USDE altogether.

This is a developing story.