These States Are Winning The Race For Federal AI Education Funding
These States Are Winning The Race For Federal AI Education Funding
Publish Date: 2026-06-04 13:14:00
Source Domain: www.forbes.com
Federal AI-related education funding is concentrated in a small number of states, according to a new study.
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“AI is not a future issue,” Rep. Alma S. Adams, (D-North Carolina), said Wednesday during a congressional hearing on artificial intelligence and higher education. “The decisions we make now will shape whether this technology expands opportunity or deepens existing inequities.”
Those concerns took center stage at a hearing by the Subcommittee on Higher Education and Workforce Development. There, academic leaders emphasized the importance of AI literacy, job preparation and hands-on learning opportunities as artificial intelligence reshapes employment.
But while Congress debates how colleges can prepare students for an AI-driven workforce, a new Sallie Mae-sponsored analysis suggests that federal funding supporting AI-related education is increasingly concentrated in just a handful of states. Students interested in AI-related undergraduate and graduate programs may want to consider where federal funding is flowing.
The ranking was based on five factors, including the growth in awards and how widely AI funding was distributed within a state. No surprise that California ranked first overall. But the No. 2 was a bit unexpected: New Mexico. It was followed by Massachusetts, New York and the District of Columbia.
Using National Science Foundation data from 2022 to 2026, research firm Fractl found that five states account for 35% of all new AI-related education awards. “The biggest takeaway is that AI-related federal funding is not being distributed evenly across the country,” Ricardo Rodriguez, a senior data journalist at Fractl who led the research and analysis, tells Forbes. “Our research found that 2,716 new AI-related awards have been added since 2022, but much of that growth is concentrated in a relatively small number of states.”
Federal AI-Related Education Funding
Top 10 States*
1. California
2. New Mexico
3. Massachusetts
4. New York
5….
