Using WIOA funds to develop youth and adult AI skills

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                   WIOA
               ADVISORY SYSTEM                              CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                          OWI
             Washington, D.C. 20210                         DATE
                                                            August 26, 2025

ADVISORY:        TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 03-25

TO:              STATE WORKFORCE AGENCIES
                 STATE WORKFORCE ADMINISTRATORS
                 STATE WORKFORCE LIAISONS
                 STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS
                 LABOR COMMISSIONERS
                 AMERICAN JOB CENTERS

FROM:            LORI FRAZIER BEARDEN
                 Acting Assistant Secretary

SUBJECT:         Encouraging the Use of Workforce Innovation and Opportunity Act
                 Funding to Help Youth and Adults Develop Artificial Intelligence Skills

1. Purpose. To encourage the state and local workforce development systems to use
   Workforce Innovation and Opportunity Act (WIOA) funding to help youth and adults
   develop artificial intelligence (AI) skills.

2. Action Requested. State and local workforce development boards are encouraged to use
   WIOA Title I Youth, Adult, and Dislocated Worker programs to help participants develop AI
   skills by providing AI literacy training, looking for opportunities to integrate AI learning into
   relevant programs, partnering with other organizations and funding sources to provide
   participants with AI skills, and creating AI skills development programs.

3. Summary and Background.

   a. Summary – This TEGL presents ways for the public workforce system to provide youth
      and adults with AI skills that will enable them to access career pathways in an AI-driven
      economy.

   b. Background – On April 23, 2025, President Trump issued Executive Order 14277,
      Advancing Artificial Intelligence Education for American Youth. As articulated in the
      Executive Order, AI is rapidly transforming the modern world, driving innovation across
      industries, enhancing productivity, and reshaping the way we live and work. To ensure
      the United States remains a global leader in this technological revolution, the Nation’s
      youth and adults need opportunities to cultivate the skills necessary to use and create the
      next generation of AI technology. By fostering AI competency, students will be
      equipped with the foundational skills to adapt to and thrive in an increasingly digital
      society. Early learning and exposure to AI concepts not only demystifies this powerful

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      technology but also sparks curiosity and creativity, preparing students to become active
      and responsible participants in the workforce of the future and nurturing the next
      generation of American AI innovators.

4. Building AI Literacy through the Public Workforce System.

   a. Overview: Supporting AI education and training is authorized by multiple sections of
      WIOA. Section 101 of WIOA authorizes state workforce development boards to use
      WIOA funding to support digital literacy efforts, which can include education and
      training on AI. Additionally, Section 107 states that local boards shall “identify strategies
      for better meeting the needs of individuals with barriers to employment, including
      strategies that augment traditional service delivery, and increase access to services and
      programs of the one-stop delivery system, such as improving digital literacy skills.” Jobs
      in almost every industry are increasingly requiring workers to have digital literacy and AI
      skills. While many youth are considered “digital natives,” or people who have grown up
      with technology and the internet, it is important to ensure that young people as well as
      adults have the digital skills and AI literacy needed to successfully enter and remain in
      the workforce.

   b. Using WIOA Youth Program to Support AI Education and Training: The
      Employment and Training Administration (ETA) encourages WIOA Youth programs, in
      partnership with participants, to determine which AI skill-building opportunities might be
      appropriate for each participant’s existing digital skill level and future employment goals
      in order to integrate digital literacy training and AI skills development into the youth’s
      Individual Service Strategy. WIOA Section 129(c)(2) requires 14 program elements to be
      included in local areas’ youth programs, and AI education and training fit within several
      of the 14 program elements. Specifically, when providing general education on using AI,
      this service would fall within the “activities that help youth prepare for and transition to
      postsecondary education and training” program element. When providing career
      awareness about potential careers in AI or information on how AI is used in certain
      industries and occupations, this service would fall within the “services that provide labor
      market information” program element. And, when youth receive occupational skills
      training in AI, this service would fall within the “occupational skills training” program
      element.

      Finally, WIOA prioritizes the work experience program element with a minimum
      expenditure requirement that 20 percent of local area youth funds must be spent on work
      experience. In order to increase exposure to and skill development in AI, ETA
      encourages local areas to identify work experience opportunities in AI-related
      occupations as well as occupations that may incorporate AI into the job.

   c. Using the WIOA Adult and Dislocated Worker Programs to Support AI Education
      and Training: ETA encourages states and local boards to leverage career and training
      services provided through the WIOA Adult and Dislocated Worker programs to support
      AI education and training for eligible participants.

   Individualized career services include short-term pre-vocational services and workforce
   preparation activities. Short-term pre-vocational services include the development of
   learning skills. Workforce preparation activities include activities, programs, and services
   that can support building digital literacy skills. Both categories of individualized career
   services can support AI literacy and digital skill-building for participants whose ability to
   obtain and retain employment would benefit from such skills.

   Training services can also support AI education and training. Eligible participants may
   utilize training programs that support AI literacy that are already available through the
   Eligible Training Provider List (ETPL). Since AI training programs are being
   continuously developed, quality AI training opportunities such as work-based learning or
   programs that lead to industry-recognized credentials may exist outside of the ETPL. In
   these cases, local boards may consider contracting training services from institutions of
   higher education or other eligible providers to provide participants with innovative
   training opportunities to develop AI skills for in-demand industry sectors and
   occupations.

d. Using the Governor’s Reserve: States may reserve up to 15 percent of their annual
   Youth, Adult, and Dislocated Worker program allotments to carry out both required and
   allowable statewide youth activities and statewide employment and training activities.

   Allowable statewide youth activities under WIOA Section 129(b)(2) include
   “demonstration projects related to meeting the education and employment needs of
   eligible youth.” Other allowable statewide employment and training activities listed at
   Section 134(a)(3) include “developing and implementing innovative programs and
   strategies designed to meet the needs of all employers (including small employers) in the
   State.”

   Demonstration projects and innovative programs related to integrating digital literacy,
   including AI education and training, into WIOA Youth, Adult, and Dislocated Worker
   programming are allowable as a use of Governor’s Reserve funds and can help the
   workforce system learn from and scale AI education and training into broader WIOA
   Title I programs.

e. Components of AI Literacy: ETA recommends that States and local areas consider AI
   education and training opportunities for participants that incorporate a range of
   foundational content areas of AI literacy and utilize effective delivery practices.

   Foundational content areas of AI literacy include concepts such as understanding the
   basics about how AI works, exploring AI uses, prompting AI effectively, evaluating AI
   outputs, and managing AI responsibly through safe and secure usage. Responsible AI
   methods should include appropriate cybersecurity practices. Learners should understand
   AI’s core concepts, capabilities, and limitations; explore different AI tools and how they
   can complement human expertise; understand how to provide the right context to AI;
   assess AI-generated results for accuracy, completeness, and relevance; and use AI in

   ethical and secure ways. Learners should understand their accountability for the
   information they put into AI and how they utilize AI outputs.

   Effective delivery of AI literacy activities may include hands-on, contextualized learning,
   and opportunities that support progression along career pathways from foundational to
   more advanced, specialized AI skills. AI training opportunities may also address
   complementary skills and prerequisites to AI literacy, such as digital literacy, digital
   resilience, information literacy, and broadband access.

f. Competency Model Clearinghouse: The Department’s Competency Model
   Clearinghouse provides competency models that describe the skills necessary to educate
   and train a globally competitive workforce. The Clearinghouse provides dynamic models
   of the foundational and technical competencies for economically vital industries and
   sectors of the American economy, as well as a broadly applicable model of competencies
   called the Building Blocks Model. The Building Blocks Model can be used to
   communicate fundamental workforce needs as the basis for nationwide Industry
   Competency Models or custom competency models.

   The Tier 2 – Academic Competencies Basic Computer Skills competency block of the
   Building Blocks Model reflects changes in workplace technology and the growing
   importance and scope of digital skills. The revised and expanded competencies include
   the ability to:
       i. Demonstrate resilience in adapting to changing digital technology.
      ii. Problem solve and navigate digital transformations.
    iii. Assess the provenance of content provided by third parties that may have been
          generated or modified by artificial intelligence tools.
     iv. Examine thoroughly any content produced by generative AI interfaces for
          conformity to Federal law, organizational policies, and professional norms
          regarding accuracy, validity, reproducibility, or reliability of information.
      v. Use appropriate prompting techniques to generate needed content from generative
          AI interfaces.
     vi. Use appropriate prompting techniques to generate or debug software code using
          generative AI interfaces.
    vii. Adhere to Federal law and organizational policies regarding appropriate uses of
          generative AI interfaces, including creation and distribution of AI generated
          content.

   The Department recently updated the Basic Computer Skills competency block
   recognizing the increasing demand by employers for digital literacy and basic computer
   skills.

g. Resources: To provide resources for K-12 AI education, the White House Task Force on
   AI Education is establishing public-private partnerships with leading AI industries,
   academic institutions, nonprofit entities, and other organizations to provide online
   resources fostering foundational AI literacy and critical thinking skills for America’s
   youth. Information about these resources will be available on AI.gov.

       The U.S. National Science Foundation (NSF) has invested in AI research since the early
       1960s, setting the technical and conceptual foundations driving today’s AI innovations.
       Through its investments in education and workforce preparation, NSF has supported the
       development of various resources to support AI literacy, including on how to teach, learn,
       and use AI. Visit NSF’s website to explore their resources on AI.

5. Inquiries. Please direct inquiries to the appropriate Regional Office.

6. References.
   • Executive Order 14277: Advancing Artificial Intelligence Education for American
      Youth; and
   • Workforce Innovation and Opportunity Act (Pub. L. 113-128).

7. Attachment(s). N/A