TLDR: The U.S. Department of Labor’s Employment and Training Administration has issued new guidance to states, encouraging them to utilize Workforce Innovation and Opportunity Act (WIOA) grants to enhance artificial intelligence literacy and training across the American workforce. This initiative aims to prepare workers for the evolving job market shaped by AI, aligning with President Trump’s Executive Order on AI education.
WASHINGTON – The U.S. Department of Labor’s Employment and Training Administration (ETA) announced on August 26, 2025, a significant step towards preparing the American workforce for the future by issuing guidance to states on leveraging Workforce Innovation and Opportunity Act (WIOA) grants. This guidance specifically promotes the bolstering of artificial intelligence (AI) literacy and training throughout the public workforce system. The initiative is a direct response to the rapidly changing labor market, where AI is creating new job categories, many of which are high-paying and do not necessarily require a four-year degree.
The new directive encourages states and local workforce development boards to allocate WIOA Title I Youth, Adult, and Dislocated Worker program funding to support AI literacy among participants. Furthermore, the department suggests that states utilize their governor’s reserve funds to integrate AI learning opportunities into existing programming. This move is part of the department’s broader effort to implement President Trump’s Executive Order, “Advancing Artificial Intelligence Education for American Youth.”
Secretary of Labor Lori Chavez-DeRemer emphasized the administration’s commitment, stating, “President Trump set out with a goal to Make America Skilled Again by providing more flexibility to state and local governments, empowering them to utilize federal resources more efficiently to prepare workers for the in-demand, mortgage-paying jobs of the future. By sending out this new guidance, the Department of Labor is fulfilling the President’s goal and acting on our commitment to put the American worker first.”
Deputy Secretary of Labor Keith Sonderling highlighted the transformative potential of AI, noting, “As AI continues to reshape the labor market, we are seeing entire new categories of jobs be created, many of which are high-paying and no longer require a four-year degree. We believe that AI literacy is the gateway to opportunity in an AI-driven economy, and this guidance will ensure that more Americans have access to the foundational AI skills they need to succeed.”
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This guidance follows the department’s recent report, “America’s Talent Strategy: Building the Workforce for the Golden Age,” which outlined a plan to equip workers with the necessary skills to thrive in an AI-driven economy. By utilizing existing statutory authorities like WIOA, states and localities can prioritize AI literacy and skills development, thereby preparing workers for the jobs of tomorrow. The guidance also points to additional resources from the department’s Competency Model Clearinghouse, the National Science Foundation, and AI.gov, providing a comprehensive approach to AI education and workforce development.
