TEACH Improvement Act of 2026
Sponsored By: Senator Sen. Grassley, Chuck [R-IA]
Introduced
Summary
Redesigns the TEACH Grant program to tie grant awards to teaching in high-need subjects and to hold colleges accountable for grant-to-loan conversions. The bill would set new award amounts, strict service obligations and clear conversion-to-loan rules while creating reporting and servicer accountability.
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 3 benefits, 1 costs, 2 mixed.
Annual TEACH grant amounts
If enacted, starting July 1, 2026, TEACH Grants would pay set annual amounts. Most undergraduate or post‑baccalaureate students would get $4,000 in each of the first two years and $5,000 in each of the next two years. Certain applicants in the alternate category would get $5,000 each year. Total caps would be $18,000 for undergraduate/post‑baccalaureate study and $10,000 for graduate study. Part‑time awards would be reduced pro rata and TEACH Grants plus other aid could not exceed your cost of attendance.
Limits on schools with many conversions
If enacted, beginning in award year 2026–2027 the Department would measure each school's TEACH grant‑to‑loan conversion rate over the prior three award years. If 50% or more of covered recipients converted, the school would be ineligible to award TEACH Grants to many new students for three award years. If 40% or more converted, the school would face three award years of restrictions such as no first‑year TEACH Grants, requiring student teaching before a grant, extra financial aid counseling, and a task force with an improvement plan. Schools can apply to restore full eligibility after meeting progress and conversion‑rate tests and receiving technical assistance.
Conversion to loans and fixes
If enacted, a TEACH Grant you fail to satisfy the teaching requirement for would be converted into a Federal Direct Stafford Loan as of the conversion date. Conversion would be prorated by the share of the service obligation you did not complete, and the loan would not accrue interest until conversion. You could request reconsideration and the Secretary would have to decide within 90 days. If reconsideration shows a valid reason, the converted loan and any interest or fees would be discharged, payments applied or reimbursed, credit reporting fixed, and your service window could be extended so remaining time equals eight years minus full years already taught.
Who can get TEACH grants
If enacted, the bill would set who qualifies for TEACH Grants and what you must do to get them. Applicants must timely apply, sign a written service agreement, and meet academic or admissions thresholds the Secretary sets (generally comparable to a 3.25 GPA or an admissions test at the 75th percentile for first‑year undergraduates). Graduate applicants must meet teacher‑related criteria, including certain alternative certification routes. You would have to agree to teach full time for at least four academic years within eight years after finishing your funded study and submit annual employment certification. The bill would also define eligible institutions and post‑baccalaureate programs and require a plain‑language disclosure about the service obligation and loan consequences.
More servicer oversight and reporting
If enacted, the Secretary would write rules to hold third‑party servicers accountable and impose penalties when servicer errors cause loss of TEACH benefits. The Department would keep and update public lists of qualifying schools and high‑need fields and notify recipients about certification rules. The Department must also send an annual report within one year and every year after on conversions, reconversions, complaints and resolutions, and recipient demographics, and a program report every two years on program outcomes.
How TEACH money is paid out
If enacted, the Secretary would be authorized to use such sums as may be necessary to make TEACH Grant payments beginning July 1, 2026. At least 85% of funds given to an eligible school would be advanced before each payment period unless the Secretary publishes a different payment system. The Secretary could place some schools on reimbursement and could pay teacher candidates directly only if a school declines to participate in the required school disbursement system. These rules aim to speed payments and protect student cash flow.
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Sponsors & CoSponsors
Sponsor
Sen. Grassley, Chuck [R-IA]
IA • R
Cosponsors
Sen. Reed, Jack [D-RI]
RI • D
Sponsored 4/28/2026
Sen. Gallego, Ruben [D-AZ]
AZ • D
Sponsored 4/28/2026
Roll Call Votes
No roll call votes available for this bill.
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