This bill authorizes the National Science Foundation (NSF) to provide awards to eligible entities, such as nonprofit organizations and educational institutions, for developing and implementing artificial intelligence (AI) literacy programs. These programs are designed to promote AI understanding at the local level, using trusted sources, and cover topics including AI basics, applications, ethical considerations, and societal impacts. Funds can be used for curriculum development, education, training, and outreach, with a particular focus on serving marginalized communities like communities of color, low-income populations, rural areas, senior citizens, and people with disabilities. The NSF will prioritize applications demonstrating a strong commitment to these underserved groups, experience in technology education, and innovative approaches to AI literacy. Additionally, the Act mandates several federal agencies, including the Departments of Labor, Commerce, Education, and the Small Business Administration, to submit reports to Congress. These reports will detail strategies for advancing AI literacy within their respective domains, such as workforce development, business competitiveness, and K-12 and higher education curricula, and identify existing award programs that can be modified to support AI literacy initiatives.