These States Are Winning The Race For Federal AI Education Funding

LeadershipEducationEditors' PickThese States Are Winning The Race For Federal AI Education FundingA new analysis of NSF awards has some surprising findings on where colleges are attracting the most AI-related research, scholarships, internships and workforce development programs.ByLisa Chambers, Staff Writer. I am a staff writer covering higher education at ForbesFollow AuthorJun 04, 2026, 01:14pm EDTFederal AI-related education funding is concentrated in a small number of states, according to a new study.getty“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 FundingTop 10 States*1. California 2. New Mexico 3. Massachusetts 4. New York 5. District of Columbia 6. Texas 7. North Carolina 8. Florida 9. Tennessee 10. Virginia Bottom 10 States51. Wyoming 50. Alaska 49. Kansas 48. Hawaii 47. Kentucky 46. Washington 45. New Hampshire 44. Vermont 43. Nebraska 42. Delaware *Based on data from the U.S. National Science Foundation The analysis defines AI education funding as federal support for AI-related teaching, research and student programs at colleges, universities and research institutions. That includes research grants, fellowships, scholarships and workforce development programs tied to artificial intelligence and related fields. One of the most notable findings was New Mexico’s second-place finish. Unlike larger states such as California and Texas, New Mexico’s performance was driven less by sheer funding volume (the District of Columbia ranked highest with $255.8 million compared with New Mexico’s $19.7 million) and more by how broadly funding is distributed across institutions. According to the report, nearly 70% of the New Mexico’s AI-related education funding reaches historically Black colleges and universities (HBCUs), tribal colleges and community colleges, more than double the share of any other state, while 22 other states received no money for those institutions. Additionally, New Mexico had the highest share of awards going to STEM education at 56.5%. “New Mexico’s federal AI education funding flows through public university systems that serve a unique demographic mix,” Rodriguez says. “Both of the state’s largest research universities operate broader public networks that include community college branches across the region.” For students, that translates to greater access to hands-on research opportunities, tech fellowships and local career pipelines. At the University of New Mexico, designated as a Hispanic- and Minority-Serving Institution, that funding is already translating into new educational opportunities. A nearly $3 million National Science Foundation grant is helping support the university’s Responsive and Resilient AI for Autonomous Systems Engineering, or RAISE, program, which includes a new graduate certificate focused on ethical AI and autonomous systems. Awarded in 2024 and spread out over five years, the grant also supports interdisciplinary coursework and industry partnerships with organizations including Sandia National Laboratories and the Air Force Research Laboratory. “This funding is impacting students in multiple ways,” says Meeko Oishi, a professor of electrical and computer engineering at UNM and principal investigator on the RAISE grant. Ethical AI remains a largely unexplored field, creating opportunities for students to help shape how the technology develops, including how to “operationalize these very squishy, often non-quantifiable sorts of constraints and recommendations into actual engineering components,” Oishi says. The RAISE program is designed to connect students with employers. Of the program’s inaugural cohort of nine students, three are completing research internships this summer with UNM’s industry and laboratory partners. “We’ve had so much interest from our partners about what we’re trying to do with this grant,” says Oishi. “[It is] specifically to train engineers and computer scientists to think about how to embed human-centered considerations into their designs from the get-go.” Oishi says she has been surprised by the level of interest from students in both technical and non-technical fields. “It’s not just for engineering and computer science students,” she says. “It’s also for students who have a totally different experience with AI and are looking to get more insights into how practitioners and designers actually create these tools.” As colleges race to expand AI offerings, New Mexico’s second-place finish in the Fractl analysis suggests that the states attracting the most AI-related education funding are increasingly investing in more than technical training alone. Oishi’s program illustrates a broader trend: Many institutions are training students to think critically about how AI affects society. Higher education leaders say this holistic approach will be essential in the AI-driven workforce. Want to be more successful? Subscribe to the weekly Forbes Careers newsletter to get insider tips and insights. More from ForbesForbes5 Tips For Picking A College And A Major In The Age Of AIBy Lisa ChambersForbesNew Study: A Quarter Of College Students Using AI Daily Cheat With ItBy Lisa Chambers Got a tip? Share confidential information with Forbes.Editorial StandardsReprints & Permissions