NC Compass Grant
An AI & Workforce Development Grant Opportunity
Purpose
The NC Compass Grants supports North Carolina libraries in expanding digital opportunities through two program areas:
- the integration and responsible use of artificial intelligence (AI) tools in library services, and
- the development of workforce‑focused programs that strengthen staff and community skills.
Applicants may choose to focus on either area or both, depending on community needs and organizational capacity. This funding opportunity is designed to help libraries build innovative services, enhance staff readiness, and support patrons navigating an increasingly digital and AI‑enabled landscape.
Focus Areas
Applicants may propose a project in one or more of the following areas:
AI Integration in Library Services
Development, testing, or implementation of AI‑supported tools that improve access, efficiency, or personalization of library services (e.g., automated transcription, metadata enhancement, user‑support chatbots, learning tools). This includes staff training days, dedicated professional development time, or structured learning programs focused on AI skill building.
Workforce Development
Programs that help patrons build workforce‑ready skills, including training sessions, job readiness activities, skill‑building workshops, or digital literacy courses. Projects in this category do not have to involve AI. This includes staff training days, dedicated professional development time, or structured learning programs focused on general workforce‑related skill building and competencies.
Program Guidelines
Eligible applicant libraries include:
- Public Libraries eligible for Aid to Public Libraries funds
- UNC System Libraries
- Community College Libraries
- NCICU Libraries
- Public Tribal Libraries (federally or state recognized)
Eligible libraries can submit one application for this opportunity.
- Application Deadline: December 4, 2026 at 11:59 pm
- Award Notification: January 14, 2027
- Project Period: February 1, 2027-July 31, 2027
- Final Expenditure Report Due: August 15, 2027
- Final Report Due: September 30, 2027
Awards will range from $5,000–$30,000, depending on project scope and anticipated community impact. We anticipate awarding at least $500,000 in funding.
No matching funds are required.
Only complete applications will be reviewed. All awardees must have Unique Entity Identifier (UEI) through SAM.gov, as required by 2 CFR 25.300. Questions about your UEI? Email catherine.prince@dncr.nc.gov for assistance.
Grants are awarded on an advance basis. Eligible expenses will be invoiced, purchased and funds encumbered between the award execution date (once all parties have signed) and the final date for expenditures.
Funds may be used for costs directly associated with the proposed project, including:
- Staff Training and Professional Development
- Training sessions, workshops, certification programs, webinars, or structured learning experiences related to AI, digital tools, or workforce development. This includes designated staff training days and professional learning days that include activities that increase access to digital resources, strengthen community understanding of emerging technologies, or expand participation in workforce development opportunities.
- Technology & Equipment
- Hardware, software, or digital tools needed to support AI‑enabled library services or workforce development programming.
- Subscriptions are allowable and should not extend past the grant period.
- Contracted Services
- Consultants, trainers, or curriculum developers supporting project goals.
- Program Materials & Supplies
- Learning resources, curriculum materials, and supplies required to deliver project outcomes.
- Indirect Costs
- Indirect Costs at the organization’s federally negotiated rate or the de minimus rate.
- Ongoing subscriptions and services beyond the funding period
- Bookmobile/mobile libraries/outreach vehicles
- Activities or programs about advocacy, grant writing, or lobbying with a purpose of increasing funding and/or whose primary purpose is to establish a general message that 'libraries are good places and deserve to exist';
- Architectural plans for existing or new buildings;
- Collection development activities, including electronic materials;
- Construction or pre-construction planning;
- Construction or renovation of facilities (generally, any activity involving contract labor in the construction trades is not allowable);
- Conventional arrangement, description, or cataloging of materials;
- Costs associated with content management systems (such as CONTENTdm);
- Digitizing runs of newspapers;
- Events, festivals, or acquisition of collections;
- Fundraising costs;
- General advertising or public relations costs not specific to LSTA-funded activities;
- General operating support;
- Ongoing expenditures such as utilities, Internet access, or other services ,
- Pre-award costs;
- Promotional items and memorabilia including gifts, incentives, and souvenirs;
- Refreshments, entertainment, ceremonies, receptions, or social events;
- Sub-awards; and
- Other expenses prohibited by state or federal regulations.
Applications will be reviewed based on:
• Alignment with program goals
• Clear community benefit and outcomes
• Realistic and appropriate budget
• Commitment to responsible and responsive practices in either AI service development or workforce programming
| Category | 0 Points | 1 Point | 2 Points |
|---|---|---|---|
| Users (2 pts total) | Intended audience missing or overly broad. | Audience listed but unclear how they benefit. | Intended audience clearly defined with understanding of their challenges related to AI or workforce readiness. |
| Project Description (6 pts total) | Multiple activities seem unnecessary to the project. | Most activities seem relevant to the project, but necessity of some are questionable. | Activities included in the description are relevant and serve to meet the overall goals of the project. |
| Timeline is missing and/or seems unreasonable. Dates fall outside of LSTA requirements. | Timeline is outlined, but major milestones are missing. Dates are mostly in accordance with LSTA requirements. | Timeline is reasonable and thoughtfully prepared. Dates are in accordance with LSTA requirements. | |
| The project is not clearly described, is too vague, and/or is missing key information. | The project is mostly outlined by some key details are missing from the description. | Project is clearly outlined from start to finish. Reviewers have few to no questions about the project plan after reading the description. | |
| Evaluation (2 pts total) | No outcomes listed or outcomes irrelevant to AI or workforce development. | Outcomes listed but vague, unmeasurable, or focused on outputs rather than participant change. | Outcomes are clear, measurable, and tied to improvements in AI literacy, ethical AI use, or workforce readiness; evaluation includes complete method and metrics. |
| Budget (2 pts total) | Budget includes unallowable, unreasonable and/or unnecessary for the project. | Some items relevant but others unnecessary or weakly justified. | Budget is reasonable, fully justified, and clearly supports AI tools, training, or workforce‑focused program needs. |
The Library of North Carolina recognizes the use of generative AI as a tool to further advance the purposes and priorities of the Library Services and Technology Act (LSTA) and support the goals outlined in the Library of North Carolina’s five‑year plan. By thoughtfully integrating generative AI into our program, these tools can reduce administrative burden while still maintaining human creation and decision-making.
Library of NC use case
- Generative AI will not be used by reviewers of grant applications for merit review.
- Generative AI may be used after merit review to summarize application information to share with stakeholders and partners.
- Generative AI may be used in checking clarity and consistency in reporting to align with reporting needs.
- Confidential or protected information will not be uploaded to AI systems.
Submitter use case
- Submitters will be asked to indicate in the submitted application the extent to which, if any, generative AI technology was used and how it was used to develop their application. Use of AI tools will neither advantage nor disadvantage an application.
Applications are accepted through the Library of North Carolina Grants Management System (GMS).