AI Upskill Accelerator Pilot Program

KEY INFORMATION

Agency: Department of Commerce, Economic Development Agency

Total Program Funding: $25,000,000 

Award Range: $1,000,000 - $8,000,000

Cost Share: 40% minimum

Est. Number of Awards: 5-8

 

PROGRAM OVERVIEW

The EDA's AI Upskill Accelerator Pilot Program is an Addendum to the Public Works Economic Adjustment Assistance (PWEAA) NOFO. This initiative will support the design and implementation of artificial intelligence (AI) workforce training, helping to train workers and grow industries that are integral to regional economies.

All projects must deliver training on AI skills, provide support to program participants that lead to training completion and access to jobs, and monitor program outcomes. Funds may also support initial program development and design. There are three phases in the NOFO: 

• System Development (optional Phase I): Up to $500,000 - Activities support the identification and convening of employer partners and other organizations to define industry needs and support related to the applied use of AI in the workplace.

• Program Design (optional Phase II): Up to $2,000,000 - Activities support the design of employer-driven skills training and enable its implementation, including securing the infrastructure specific to region, industry, and worker roles. They should build directly on completed System Development activities and operationalize employer-validated skills needs into responsive training programs that provide participants with the necessary AI skills. Must begin within 6 months after award.

• Program Implementation (required Phase III): Up to $8,000,000 - Activities support the delivery of employer-driven skills training programs that have been designed or refined through this program, specific to region, industry, and role. Activities may also include those related to delivering workforce training and participant supports that support program completion, job upskilling, job placement, and productivity. Must begin within 12 months after award.

 

ELIGIBLE PROJECTS

Eligible Phase III activities include:

• Implementation of industry-aligned AI skills training that places workers into high-paying skilled jobs;

• Identification and recruitment of workers that are underemployed, unemployed, or at risk of layoff, and training and placing/retaining those workers in high-paying skilled jobs;

• Securing and offering participant supports that enable workers to participate in the sectoral partnership's developed skills training programs (e.g., technology, paid time to complete training, materials and supplies);

• Outreach and recruitment for workers, including plans to coordinate with employers to create a training pipeline;

• Leveraging skills-based assessments and federally provided tools to collect metrics related to the efficacy of training including skill-based improvements, program participants, completers, job placements, and outcomes;

• Purchasing supplies or procuring equipment to support and expand existing workforce training projects;

• Working with employers to adopt high-wage, high-skill workforce strategies;

• Hiring a consultant or contractor, or making a subaward, to help a sectoral partnership scale or replicate the employer-driven trainings;

• Development and refinement of competency models to support other industries and employers in scaling training programs that are responsive to employer and industry needs; and

• Development of a plan to evaluate the impact that the project has had on workforce and business outcomes.

 

ELIGIBLE APPLICANTS

Eligible entities include:

• District Organization of an EDA-designated Economic Development District;

• Indian Tribe or a consortium of Indian Tribes;

• State, county, city, or other political subdivision of a State, including a special purpose unit of a State or local government engaged in economic or infrastructure development activities, or a consortium of political subdivisions;

• Institution of higher education or a consortium of institutions of higher education; and

• Non-profit organization or association acting in cooperation with officials of a political subdivision of a State.

Applicants must meet all four special needs to apply:

• The focus industry and its associated employers are a big part of the region or project service area's economy; and

• AI is currently being used by the relevant industry and the employers associated with the project; and

• AI currently in use by employers in the relevant industry is important to the future competitiveness of the industry and the economy of the region; and

• There is an existing need for training in AI with the employer partners in this project that is necessary to preserve and/or enhance their competitiveness and benefit to the region.

 

KEY DATES 

Full Application Due Date: 7/10/2026

 

RESOURCES 

View the full program guidance here.

Read the official announcement here.