Unlocking Grant Funding to Scale Experiential Learning and AI Literacy

Connecting students, educators, and employers through real-world projects and AI literacy isn’t just CapSource’s core mission; it’s a growing priority for funders across the nation. Academic leaders, grant writers, and workforce policymakers are seeing a surge in grant opportunities aimed at experiential learning, project-based education, short-term microcredentials, and cross-sector partnerships. From the U.S. Department of Education to tech philanthropies, major grants are available to help colleges and workforce programs scale up AI-forward, industry-connected learning. Below, we highlight a dozen funding programs (federal, state, and philanthropic) that align with CapSource’s vision, and how each can empower institutions to innovate with CapSource as a partner!

Major Grant Opportunities for Experiential Learning and AI Literacy

• FIPSE Special Projects (U.S. Department of Education) – The Fund for the Improvement of Postsecondary Education’s Special Projects competition supports innovative higher-ed initiatives in areas of national need. FY 2025 priorities focus on expanding the use of AI in education and building capacity for high-quality short-term programsed.goved.gov – perfectly in tune with CapSource’s focus on AI literacy and microcredentialing. With $167 million available in 2025, including $50 million earmarked for advancing AI-driven education and another $50 million for scaling short-term credential programsed.goved.gov, FIPSE-SP offers colleges a chance to fund case-based learning platforms, AI curriculum pilots, and employer-partnered certificate programs. CapSource can help institutions design AI-infused project coursework and coordinate employer partnerships to meet FIPSE’s innovation goals.

• NSF ExLENT – Experiential Learning for Emerging and Novel Technologies – The National Science Foundation’s ExLENT program backs hands-on learning opportunities that equip diverse learners with skills in emerging technology fields. It emphasizes cross-sector partnerships (NSF even teamed up with Micron’s foundation on this initiative) to develop talent in areas like AI, advanced manufacturing, and biotechnology. In practice, ExLENT grants support inclusive, cohort-based learning-by-doing experiences; exactly the kind of real company projects and industry mentorship that CapSource facilitates. Institutions can leverage ExLENT funding to launch CapSource-powered project programs that reskill adult learners, upskill nontraditional students, or integrate tech industry challenges into curricula. With CapSource’s platform connecting classrooms to companies, schools can confidently propose the “experiential learning” components NSF is looking to fund.

• OpenAI People-First AI Fund – This new $50 million initiative by OpenAI’s foundation is supporting nonprofits that advance AI literacy, community-driven innovation, and economic opportunity. In its first wave, the People-First AI Fund awarded $40.5M in unrestricted grants to 208 nonprofits working to help communities understand and benefit from AI. The fund explicitly seeks programs that equip people with AI knowledge and practical skills – for example, training educators or local mentors to make AI more accessible. Nonprofits partnering with schools or employers could use this grant to run AI literacy workshops, student AI projects, or community hackathons. CapSource can amplify such efforts by coordinating AI expert speaker series, sourcing real AI-project briefs from industry, or managing student-led AI consulting projects – bringing the “people-first” ethos to life through experiential learning.

• F5 STEM Education and AI Grants – Global tech company F5’s foundation offers $50,000 grants to nonprofits focused on building the STEM pipeline for women and girls of color, with a newly added emphasis on AI literacy education. In 2025, F5 will fund ten organizations worldwide that help young women of color access STEM and AI learning opportunities. High priority is given to programs teaching AI fundamentals or using AI tools in education. This corporate grant aligns with CapSource’s mission to make emerging tech skills accessible through real-world projects. A university or nonprofit could partner with CapSource to use an F5 grant for an AI case study competition, an industry mentoring program for women in tech, or a project-based AI curriculum. By tapping CapSource’s network of tech companies and mentors, grantees can create empowering, hands-on AI experiences that F5 is eager to support.

• Industry-Driven Skills Training Fund (U.S. Dept. of Labor) – The Department of Labor’s new Training Fund provides grants to state workforce agencies to partner with employers in key industries and upskill workers (both new hires and incumbent employees). In late 2025, DOL awarded $86 million across 14 states to launch these industry-driven training programs. Priority sectors include advanced manufacturing, skilled trades (like shipbuilding), and occupations supporting AI infrastructure and technology. Essentially, this fund helps states reimburse employers for training workers in high-demand skills. Colleges and training providers can get involved via their state’s grants, helping design curriculum or deliver instruction. This is a natural fit for CapSource’s employer partnership coordination: we can help a state or college quickly engage multiple employers, co-create project-based training modules in AI or advanced tech, and even provide the platform to track training outcomes per employee. By integrating CapSource-facilitated projects or micro-internships into these programs, grantees can ensure training is practical and tied to real employer needs.

• Illinois Apprenticeship Expansion (2025 Competitive Grant) – Illinois’ Department of Commerce & Economic Opportunity has a new Notice of Funding Opportunity to expand Registered Apprenticeships and pre-apprenticeships statewide. With $5–10 million in grants (up to $1M each) on the table, this program will fund “high-impact intermediaries” that can create and manage apprenticeship programs, especially in non-traditional, in-demand sectors like IT, healthcare, finance, and creative industries. The goal is to have organizations (colleges, nonprofits, workforce boards, etc.) serve as apprenticeship hubs that recruit employers and support apprentices through their journey. For colleges looking to start an apprenticeship or internship program, this is a golden ticket. CapSource can act as a strategic partner or intermediary – leveraging our platform to source company projects and apprenticeship placements, and using our experience in project-based learning to enhance the related instruction for apprentices. With CapSource’s help in employer outreach and project facilitation, Illinois grantees can confidently propose to scale work-based learning in emerging fields (e.g. data analytics or AI apprenticeships).

• Virginia FFEI – “AI Pathways” Grants – The State Council of Higher Education for Virginia (SCHEV) has made AI integration a focus of its Fund for Excellence and Innovation (FFEI). In Fall 2025, SCHEV opened a grant call for “Creating Student Pathways or Communities of Practice in AI,” inviting public colleges (often in teams) to propose projects that prepare students for an AI-forward world and align programs with labor market needs. The FFEI AI grants (about $225,000 total, up to $250k per project) encourage two tracks: (1) expanding AI education pathways between K-12, community colleges, and universities – including new stackable micro-credentials and retooling programs to attract nontraditional learners; or (2) creating shared services and faculty communities of practice to integrate AI in instruction and student support (think faculty training, AI tools for advising, micro-badging for AI skills, etc.). Virginia institutions can team up (one must lead) to pilot these ideas. CapSource’s expertise in bridging academic and industry worlds can greatly enhance such proposals – for instance, helping design AI micro-credential projects with employer input, setting up an AI speaker series across partner campuses, or providing a platform for cross-campus collaboration on AI case studies. These elements not only meet FFEI’s objectives of readying students for AI-powered careers, but also create scalable models that can be shared statewide.

• Oklahoma UpskillOK Initiative – UpskillOK is the Oklahoma State Regents’ micro-credential program, which funds colleges to develop short-term, skills-focused credentials in partnership with industry. In 2025, the Regents awarded special UpskillOK grants emphasizing AI literacy integration – $150,000 across several campus projects to embed AI fundamentals into micro-credentials and prepare students for the future of work. For example, one college received funding to teach “Prompt Engineering for AI-Driven Management”, while a consortium of institutions got $90k to launch an “Introduction to AI in Education” micro-credential for educators. UpskillOK demonstrates how short, stackable learning pathways (certificates, badges) can rapidly address workforce needs – a trend CapSource fully embraces. Colleges in Oklahoma (and elsewhere) can partner with CapSource to design micro-credentials that include real employer projects or case simulations, ensuring the credential delivers job-relevant experience. Through CapSource, an UpskillOK program can easily incorporate local employer input (for example, an AI tools project sponsored by a company) and give learners tangible portfolio outcomes – exactly what these grants intend to fund.

• Alabama “All In” AI Microcredential Grants – The Alabama Commission on Higher Education (ACHE) is investing in home-grown talent through its All In Alabama initiative. As part of this effort, ACHE launched an AI Microcredential Grant program (academic year 2025–26) to help public colleges create industry-aligned AI microcredentials that boost student employability. Each institution can get up to $5,000 per microcredential (with at least 15 grants expected) to develop or enhance short-term learning experiences focused on AI skills. ACHE encourages proposals embedding AI skill badges within courses or as supplemental add-ons to existing programs. The grant may be modest in dollar amount, but it’s impactful: schools can use it to design a short AI curriculum module, an AI skills bootcamp, or an internship-integrated AI badge. CapSource can provide the “real-world” layer that makes an AI microcredential meaningful – for instance, connecting a college with local employers (in manufacturing, finance, etc.) so that the AI credential includes solving an authentic industry problem. By partnering with CapSource, Alabama institutions ensure their microcredentials aren’t just aligned with employer needs on paper, but actively involve employers in project design and assessment.

• California AI Grand Challenge (Leveraging AI for Teaching and Learning) – California’s AI Grand Challenge is a state-funded grant program fueling big ideas to integrate AI into college teaching and learning at scale. In 2024, the California Learning Lab (under the Governor’s Office/CA Education) selected 5 collaborative projects (from 32 proposals) to receive up to $1.5 million each over 2–3 years. The funded projects involve multi-campus teams from UCs, CSUs, and community colleges; all aimed at using AI to enhance curriculum and pedagogy statewide. Examples include developing an AI-powered writing tutor across campuses, deploying personalized AI learning assistants in engineering courses, and creating an “Equitable AI Alliance” for students. The goal is to reach tens of thousands of students and faculty with these innovations. While these grants target California public institutions, they reflect a broader trend: significant funding for AI-driven educational innovation. A college working on an AI tutor or similar could collaborate with CapSource to pilot the tool in real classroom-company projects (e.g. having students use an AI tutor while solving a CapSource industry case). Moreover, CapSource can help such grant teams engage industry partners; for instance, bringing in tech companies to provide data sets or problems for students to tackle using the new AI tool. By bridging academia’s AI experiments with practical applications, CapSource ensures these grand ideas truly prepare students for the AI-enabled workplace.

• ABAI Microcredentials Grant – Even professional associations are getting into the microcredential game. The Association for Behavior Analysis International (ABAI) now offers a Microcredentials Grant (up to $10,000) to member-affiliated faculty who develop short, skills-based credentials in behavior analysissaba.abainternational.orgsaba.abainternational.org. The aim is to certify mastery of specific, observable skills (e.g. behavior assessment techniques, autism intervention strategies) via digital badges or micro-certificates. While niche, this grant underscores how microcredentials are emerging across disciplines as a way to enhance training. For colleges, it’s an example that corporate and institutional funds (not just government) can support credential innovation. A university could take inspiration to pursue microcredential funding from its own partners – say, a business school collaborating with a finance association to fund a fintech microcredential. Wherever such opportunities arise, CapSource can assist by structuring the hands-on project component and providing a platform to deliver and assess the microcredential. In the ABAI case, for instance, CapSource could help a psychology department create real-world simulations or partner with clinics for practicum projects, making the microcredential more robust and attractive.

As the above programs show, grant makers are prioritizing AI-forward education, short-term credentials, and industry collaboration. They are funding everything from AI curriculum development and apprenticeship expansion to nonprofit AI literacy initiatives – all areas where CapSource’s project-based learning platform adds value. The common thread is a recognition that learners need real-world experience and up-to-date skills. Grants can provide the resources, but success often requires the right partnerships and implementation strategy. That’s where CapSource comes in.

Partnering with CapSource for Grant-Funded Success

Securing a grant is just the start – you also need to deliver on ambitious plans. CapSource can be your secret weapon in both the grant application and execution phases, ensuring your experiential learning or AI education project has maximum impact. Here are a few ways we support institutions and organizations in grant-funded programs:

• Project Co-Design and Facilitation: We help you co-create project-based learning experiences that fulfill grant objectives. Need an industry-sponsored case study for your new AI curriculum? Looking to embed real company consulting projects into a short-term credential program? CapSource will source relevant employers, scope out meaningful projects, and facilitate the collaboration. Our team has helped design live case competitions, capstone projects, and micro-internships that bring classroom theory to life – a compelling component for any grant proposal and a high-impact practice for students.

• Platform Integration at Scale: CapSource’s online platform makes it easy to manage experiential learning at scale – matching students with company projects, tracking milestones, and assessing outcomes. Funders love to see scalability and data tracking. By integrating CapSource’s platform, your grant project can efficiently handle dozens (or hundreds) of employer engagements and yield data on skills gained, hours logged, and participant feedback. This not only impresses grant reviewers (with a turnkey infrastructure for implementation) but also ensures you can deliver on large-scale partnerships (for example, coordinating apprenticeships or multi-campus microcredentials) with ease.

• AI Literacy & Speaker Series Coordination: Many grants (like OpenAI’s fund or F5’s grants) emphasize AI literacy and community engagement. CapSource can coordinate an AI speaker series, expert panels, or mentor network as part of your project. We tap our network of industry professionals – from data scientists to ethical AI experts, to provide guest lectures, Q&A sessions, or even one-on-one mentoring for your students and faculty. Imagine a grant-funded “AI in Industry” lecture series where each week a different tech leader discusses real use cases – CapSource can organize this, adding immense value to your initiative at minimal cost. It’s a great way to enrich a grant program (and check the box for industry involvement and up-to-date content).

• Microcredential and Curriculum Support: Designing a new microcredential program or short course? CapSource offers consulting on aligning the curriculum with industry needs. We can help identify which competencies employers seek, and shape project assignments or case studies to teach those skills. For instance, if you’re using a grant to create a cybersecurity microcredential, CapSource can bring in a partner company to supply a realistic cyber defense project that students must complete to earn the badge. We also assist with mapping these experiences to credential outcomes and even integrating employer feedback into the assessment – ensuring your microcredential truly signals job-ready ability. This kind of support strengthens your grant application (showing clear employer validation) and yields a more effective program.

• Employer Partnership Coordination: Perhaps most importantly, CapSource serves as a bridge to employers and community partners. Nearly all the grants above require some form of partnership – be it companies for apprenticeship or nonprofits for community outreach. We have an extensive network of corporate partners across industries who are eager to collaborate on education and workforce initiatives. When you work with CapSource, we can quickly assemble the letters of support, MOUs, or partnership agreements you need for a grant proposal. During project rollout, we handle the logistics of onboarding companies, defining their role (e.g. hosting interns, providing projects, offering site visits), and maintaining relationships. This allows your faculty and staff to focus on teaching and learning, while we ensure your employer partners stay engaged and deliver on their commitments. It’s like having a built-in employer relations team dedicated to your grant.

• Grant Readiness and Consulting: Not sure where to start with these funding opportunities? CapSource is happy to consult on grant strategy. We can help identify which grants best fit your institutional goals, brainstorm project ideas, and even review proposal drafts to highlight your experiential learning plan. Our experience across many grant-funded collaborations means we know what funders look for, whether it’s evidence of student outcomes, sustainability plans, or innovative use of technology. We’ll help you articulate how partnering with CapSource strengthens your proposal (for example, by citing our past successes connecting classrooms with thousands of employers, or our platform’s usage data to demonstrate feasibility). In short, we’re not just a service provider but a strategic ally in winning and executing grants that advance experiential education.

Join Forces with CapSource: Let’s Scale Impact Together

The momentum is building… colleges, universities, nonprofits, and employers have a unique window right now to secure grant funding and launch transformative programs. The trends are clear: AI and experiential learning are at the forefront of education innovation, and stakeholders are investing big to make education more applied, inclusive, and future-ready. CapSource stands ready to help you capitalize on this moment. We bring the partnerships, tools, and know-how to turn grant dollars into sustainable, high-impact programs that connect learners with real-world opportunities.

Are you considering any of the grants above (or others like them)? Do you have an idea for a project-based learning initiative or an AI literacy program that could use funding? Let’s schedule some time to talk! CapSource would love to collaborate on your grant application and program design. We’re passionate about scaling win-win collaborations between academia and industry – and with the right funding, there’s no limit to how many students and communities we can benefit.

Contact CapSource today to explore partnership opportunities. Whether you’re writing a FIPSE proposal, launching an AI microcredential, or planning a workforce training program, we’ll help you craft a compelling vision and execute it flawlessly. Together, we can unlock these grants and create experiential learning experiences that equip your students and stakeholders for the future of work. Let’s unlock funding and empower the next generation – one project at a time!