Funding Competition Opens for Teacher Pay Incentives in Struggling Schools
Published Date: 4/10/2026
Notice
Summary
The Department of Education and Labor are inviting schools and nonprofits to apply for grants that reward teachers and school leaders who help students grow and close achievement gaps. Eligible groups must apply by June 8, 2026, to get funding for programs that boost teacher pay and leadership in high-need schools. This is a great chance to improve education and support hardworking educators with new money and fresh ideas!
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Grants open for educator incentive programs
The Department of Labor (on behalf of the Department of Education) is running a competition for the Teacher and School Leader Incentive Program. Eligible organizations can apply for grant funding to develop, implement, improve, or expand performance-based compensation or human capital management systems that reward teachers, principals, or other school leaders who raise student growth and close achievement gaps; applications are due by 11:59:59 p.m. Eastern on June 8, 2026.
Eligibility requires 20%+ student poverty rate
To be eligible, an LEA must serve a student population where 20 percent or more of students are from families with income below the poverty line (as defined in ESEA section 8101(41)). Other eligible applicants include consortia of such LEAs, the Bureau of Indian Education, and eligible national nonprofit organizations that serve students within eligible LEAs.
Funding prioritized for HCMS and PBCS
The FY 2026 competition includes absolute priorities for Human Capital Management Systems (HCMS) and Performance Based Compensation Systems (PBCS), plus a High-Need Schools priority and competitive preference priorities for "Returning Education to the States" and "Meaningful Learning Opportunities for Students." Applicants aligned with these priorities will be considered under the selection criteria and requirements in the announcement.
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