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HR10515119th CongressWALLET

Artificial Intelligence Education and Workforce Readiness Act of 2026

Sponsored By: Representative Bonamici, Suzanne [D-OR-1]

Introduced

Summary

Prepare the education and workforce systems for AI. This bill would build federal councils, grant programs, apprenticeships, regional research centers, and a reskilling tax credit while adding transparency, data security, and environmental disclosure rules for AI used in schools and workplaces.

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  • Students, families, and educators would get plain-language tool descriptions, 14‑day previews and opt-out rights for AI used in instruction or assessment, required bias and accessibility testing, and 72‑hour breach notification to affected families and the Education Department.
  • Workers and jobseekers would gain new apprenticeships, reskilling grants, fellowships, and employer incentives, including a 40% employer reskilling tax credit with an annual cap of about $1.0 billion for larger taxpayers.
  • Communities and employers would face new rules for AI infrastructure: operators with a federal nexus must disclose projected energy and water use verified by independent auditors before funding or permits, and noncompliance can bar federal assistance.

*Would authorize roughly $1.5 billion per year for fiscal years 2027 through 2031 to fund the programs, centers, grants, and administration described in the bill.*

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 5 benefits, 0 costs, 3 mixed.

New employer reskilling tax credit

If enacted, employers would be able to claim a reskilling tax credit equal to 40% of qualified reskilling expenses. The credit would be capped at $250,000 for firms with under $25 million in gross receipts and $1,000,000 for larger firms. Qualified small businesses and some tax-exempt organizations could elect to apply part of the credit against payroll taxes, but that payroll-election amount would be limited to $250,000. Expenses paid with grants from this Act would reduce the amount you could claim, and you could not also take a separate deduction or credit for the same expenses. The credit would apply to taxable years beginning after December 31, 2026, and the bill would add aggregation, reporting, and recapture rules.

Apprenticeships and reskilling supports

If enacted, the Labor Department would fund apprenticeships and reskilling grants for AI-impacted industries. Grants could pay for on-the-job wage subsidies, stipends, childcare, transportation, internet access, assistive tech, and supervisor training. The Labor Secretary, with the EEOC, would issue employer guidance on AI use in hiring and evaluations within 180 days. Grant recipients would report annually on displacement, reskilling activities, and outcomes. The bill would authorize $450 million a year for Title II activities for FY2027–2031.

Help for underserved students and MSIs

If enacted, the Education Department would award grants to Minority-Serving Institutions to build AI programs, research centers, and faculty training. The bill would fund scholarships, childcare, transportation, assistive tech, internet access, internships, and mentorships for underserved students. The Higher Education Act would be amended to let HBCUs, Tribal Colleges, and HSIs expand AI curricula and training. State vocational rehabilitation plans would also need to address AI accessibility and employer accommodations. The bill would authorize $450 million a year for Title III activities for FY2027–2031.

School and college AI grants and rules

If enacted, the Education Department would award competitive grants to build AI-disrupted career pathways, AI literacy, and translated accessible curricula. The bill would fund micro-credential pilots, NSF regional centers that study human-centered AI (not for commercial sale), and require in-service AI ethics training for K–12 leaders upon enactment. The Department would issue guidance, model contract clauses, consent templates, and practice guides within 180 days and require grantees to report annually and follow new transparency, security, and risk-assessment rules. The bill would authorize $350 million a year for Title I activities for FY2027–2031.

Limits on automated decisions and enforcement

If enacted, entities getting funds under this bill would not be allowed to rely only on an automated decision system for covered decisions like admission, continuation, completion, or placement. Providers would have to test systems before use and at least yearly for bias and accuracy, supply system descriptions and input types, and funded programs would have to disclose system use and offer meaningful human review. The Education Secretary would enter MOUs with FTC, NIST, and the Attorney General to coordinate guidance and enforcement. The bill would authorize $100 million a year for Title V activities for FY2027–2031 and allows enforcement under the Act's compliance provisions.

Stronger student data privacy rules

If enacted, the bill would tighten privacy and transparency rules for federally funded education and research activities. Schools and grant recipients would have to publish research and curricula under open access and run at least two independent evaluations while funded. For any AI tool that meaningfully affects students, providers would have to give plain-language summaries, offer a 14-day preview, allow opt-outs, document human oversight, and run bias and accessibility tests. Institutions would need stronger student data security (encryption, multi-factor authentication, and vulnerability testing) and must notify the Secretary within 72 hours of any covered breach and notify affected students and parents; ED would build a secure breach portal within one year. For breaches affecting 10,000 or more students, ED would notify two congressional committees within 30 days and start annual breach reports two years after enactment. The Secretary would also have to refer knowing or repeated commercial misuse of student personal data to the Federal Trade Commission. The bill would also change K–12 and higher education grant priorities to fund AI curricula and humanities research, and those grant recipients would follow these compliance rules.

AI data centers: energy, water, and disclosure

If enacted, NIST would create standards within 1 year to measure AI energy and water use per query or task and federal agencies would use those standards when buying AI systems. OSTP would inventory federal AI energy and water use within 2 years and every two years after that. AI infrastructure operators with a Federal nexus would have to give communities independent-audited projections of annual energy and water use, cooling, and land impacts before seeking federal permits or funding, and update results annually for 5 years. The bill would fund regulator oversight grants and NSF research and authorize $120 million a year for Title IV for FY2027–2031.

National AI jobs and planning

If enacted, the Labor Department and partner agencies would publish a National AI Workforce Strategy within 1 year and update it at least every 3 years. The Labor Secretary would publish a data-driven list of AI-augmented occupations within 270 days, open a 45-day public comment period, and update the list at least yearly. The bill would set up interagency and Labor advisory councils, require State workforce boards to add AI implementation plans to unified state plans, and make certain grant programs report annually on displacement and reskilling. The bill would authorize $10 million a year for related planning and compliance work for FY2027–2031.

Sponsors & CoSponsors

Sponsor

Bonamici, Suzanne [D-OR-1]

OR • D

Cosponsors

  • Rep. Lieu, Ted [D-CA-36]

    CA • D

    Sponsored 9/21/2026

  • Rep. Foushee, Valerie P. [D-NC-4]

    NC • D

    Sponsored 9/21/2026

  • Rep. Gottheimer, Josh [D-NJ-5]

    NJ • D

    Sponsored 9/21/2026

  • Rep. Krishnamoorthi, Raja [D-IL-8]

    IL • D

    Sponsored 9/21/2026

  • Rep. Panetta, Jimmy [D-CA-19]

    CA • D

    Sponsored 9/21/2026

  • Rep. Thompson, Bennie G. [D-MS-2]

    MS • D

    Sponsored 9/21/2026

  • Rep. Wilson, Frederica S. [D-FL-24]

    FL • D

    Sponsored 9/21/2026

  • Rep. Landsman, Greg [D-OH-1]

    OH • D

    Sponsored 9/24/2026

Roll Call Votes

No roll call votes available for this bill.

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