By Mitch Coppes, Federal Government Affairs Manager, Goodwill Industries International
This week, the White House released America’s AI Action Plan, which outlines the Trump Administration’s strategy to accelerate AI innovation, build an AI infrastructure and promote the adoption of AI across industry sectors. The multi-agency plan includes several components on workforce development.
The Department of the Treasury is instructed to issue guidance clarifying that many AI literacy and AI skill development programs may qualify as eligible educational assistance under the Internal Revenue Code, allowing employers to offer tax free AI training for employees.
It establishes an AI Workforce Research Hub under the Department of Labor (DOL) to evaluate the impact of AI on the labor market and workers, and it directs the department to leverage available discretionary funding for rapid retraining for individuals impacted by AI-related job displacement. DOL and other agencies will prioritize AI skills development as a core objective of federal education and workforce funding under the plan. In addition, DOL and the Department of Commerce will use funds, including funding provided through the Workforce Innovation and Opportunity Act, to pilot new approaches to address workforce challenges created by AI.
“By boosting AI literacy and investing in skills training, we’re equipping hardworking Americans with the tools they need to lead and succeed in this new era,” said Secretary of Labor Lori Chavez-DeRemer. However, the president’s budget request for Fiscal Year 2026 proposes to reduce overall funding for DOL by nearly 35 percent compared to current funding levels, eliminating some employment and training programs while consolidating others into a single block grant to states.
The plan also calls for federal agencies to convene employers, industry groups and other workforce stakeholders to develop or identify national skill frameworks and competency models for occupations essential to the buildout of AI infrastructure and to partner with states and local governments and workforce systems to support the creation of training programs that the address workforce needs of priority AI infrastructure occupations.
In addition, DOL is instructed to expand the use of Registered Apprenticeships in AI infrastructure occupations, with a focus on streamlining the launch of new programs and promoting employer adoption of Registered Apprenticeships for these occupations. Federal agencies will also work with education and workforce system stakeholders to increase early career exposure programs and pre-apprenticeships in AI infrastructure occupations for middle and high school students.
