Sec. 27o. (1) From the state school aid fund money appropriated in section 11, there is allocated $3,000,000.00 for 2026-2027 only to an intermediate district to support a statewide digital credentialing initiative for students in CTE programs and educators. The digital credentialing initiative must provide students and instructional staff with access to a verifiable, portable, and accessible digital record of skills, competencies, and achievements that may be securely shared with employers, postsecondary institutions, and workforce partners across this state, supporting Michigan's economic workforce competitiveness by improving skills transparency and portability statewide. (2) Funds received under this section must be awarded to an intermediate district to partner with a nonprofit organization with demonstrated experience in digital credentialing and workforce-aligned talent record systems. (3) The digital credentialing initiative must enable CTE students statewide, including program completers and individuals demonstrating proficiency in Perkins V-aligned competencies, to earn verified, portable digital credentials documenting career pathway achievements, workforce readiness, and postsecondary readiness. Credentials must be aligned to department-approved CTE programs and statewide competency frameworks to ensure consistency and portability across regions. (4) The digital credentialing initiative must include, at a minimum, both of the following: (a) Development of digital credentials for CTE program completion, work-based learning, youth apprenticeship, and soft skills. All credentials must be stored, including industry-recognized credits. Credentials must be maintained within a statewide credential library to support consistent issuance, validation, and recognition across this state. These achievements must be showcased in a digital, portable portfolio that organizes and displays verified credentials, skills, competencies, and achievements and can be securely shared. (b) Digital credentials for educators that track literacy professional development for educators, including the completion of LETRS training or other science of reading-based training. Credentials issued for the completion of LETRS training must be competency based, verifiable, and electronically shareable by the educator. Each credential must document the specific level or unit completed and the date of completion. (5) The development of digital credentials for CTE program completion described in subsection (4)(a) must align with state and regional workforce and education systems to support Michigan's economic workforce competitiveness and regional talent pipeline needs, while ensuring statewide consistency and portability of credentials. The administering nonprofit organization shall provide statewide implementation support and submit an annual report to the department detailing adoption, credential issuance by type and region, and progress toward improving statewide CTE-to-workforce outcomes. (6) The administering nonprofit organization shall provide participant-level data in a form and manner prescribed by the department to support credential issuance, registry reporting, and integration with statewide education data systems. Data submitted under this section must align with statewide education data infrastructure standards, including coordination with MiDataHub and MiGreatDataLake. (7) The digital credentialing initiative must annually report to the department, to the extent not otherwise collected through existing reporting systems, the name, personnel identification code, employing district or entity, level or unit completed, date of completion, and credential status for each educator participating in LETRS training funded under section 35a. The department may incorporate this information into a statewide educator workforce profile system. (8) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department. (9) As used in this section: (a) "CTE program" means a career and technical education program. (b) "CTE student" means a pupil enrolled in a career and technical education program.