Title 20EducationRelease 119-73not60

§6632 Teacher and School Leader Incentive Fund Grants

Title 20 › Chapter 70— STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY SCHOOLS › Subchapter II— PREPARING, TRAINING, AND RECRUITING HIGH-QUALITY TEACHERS, PRINCIPALS, OR OTHER SCHOOL LEADERS › Part B— National Activities › Subpart 1— teacher and school leader incentive program › § 6632

Last updated Apr 5, 2026|Official source

Summary

The Secretary will award competitive grants to eligible groups so they can create, improve, or grow performance-based pay or human capital systems in the schools they serve. Grants last up to 3 years and can be renewed for up to 2 more years if the grantee shows the money is being used well; renewals can let a program expand or be copied. A local school district can get these grants only twice. To apply, groups must describe the proposed system, the biggest gaps in student access to effective teachers and leaders (especially in high-need schools), proof of support from teachers and leaders, how performance will be fairly measured (including a student-achievement baseline), which schools and students will be served and why, how the system will raise educator effectiveness, a yearly plan and budget, how the work will keep going after the grant, what other public or private funds will help, why the project should work and any past experience, and how the project will be evaluated, overseen, and publicly reported. Grants should focus on helping teachers, principals, and other leaders in high-need schools and should be spread fairly across geographic areas, including rural and urban places. Grant money may be used for things like building fair evaluation and support systems tied partly to student achievement, outreach and training, giving principals more control over budgets and staffing, pay systems with bonuses for teaching in high-need schools or subjects or for raising student achievement, better hiring and retention systems, and career-advancement options for effective educators. Grant recipients must provide non‑Federal matching funds equal to 50 percent of the grant (cash or in kind). The federal grant money must add to other federal or state funds and not replace them.

Full Legal Text

Title 20, §6632

Education — Source: USLM XML via OLRC

(a)From the amounts reserved by the Secretary under section 6621(1) of this title, the Secretary shall award grants, on a competitive basis, to eligible entities to enable the eligible entities to develop, implement, improve, or expand performance-based compensation systems or human capital management systems, in schools served by the eligible entity.
(b)(1)A grant awarded under this subpart shall be for a period of not more than 3 years.
(2)The Secretary may renew a grant awarded under this subpart for a period of not more than 2 years if the grantee demonstrates to the Secretary that the grantee is effectively using funds. Such renewal may include allowing the grantee to scale up or replicate the successful program.
(3)A local educational agency may receive (whether individually or as part of a consortium or partnership) a grant under this subpart, as amended by the Every Student Succeeds Act,11 See References in Text note below. only twice.
(c)An eligible entity desiring a grant under this subpart shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require. The application shall include—
(1)a description of the performance-based compensation system or human capital management system that the eligible entity proposes to develop, implement, improve, or expand through the grant;
(2)a description of the most significant gaps or insufficiencies in student access to effective teachers, principals, or other school leaders in high-need schools, including gaps or inequities in how effective teachers, principals, or other school leaders are distributed across the local educational agency, as identified using factors such as data on school resources, staffing patterns, school environment, educator support systems, and other school-level factors;
(3)a description and evidence of the support and commitment from teachers, principals, or other school leaders, which may include charter school leaders, in the school (including organizations representing teachers, principals, or other school leaders), the community, and the local educational agency to the activities proposed under the grant;
(4)a description of how the eligible entity will develop and implement a fair, rigorous, valid, reliable, and objective process to evaluate teacher, principal, or other school leader performance under the system that is based in part on measures of student academic achievement, including the baseline performance against which evaluations of improved performance will be made;
(5)a description of the local educational agencies or schools to be served under the grant, including such student academic achievement, demographic, and socioeconomic information as the Secretary may request;
(6)a description of the effectiveness of teachers, principals, or other school leaders in the local educational agency and the schools to be served under the grant and the extent to which the system will increase the effectiveness of teachers, principals, or other school leaders in such schools;
(7)a description of how the eligible entity will use grant funds under this subpart in each year of the grant, including a timeline for implementation of such activities;
(8)a description of how the eligible entity will continue the activities assisted under the grant after the grant period ends;
(9)a description of the State, local, or other public or private funds that will be used to supplement the grant, including funds under part A, and sustain the activities assisted under the grant after the end of the grant period;
(10)a description of—
(A)the rationale for the project;
(B)how the proposed activities are evidence-based; and
(C)if applicable, the prior experience of the eligible entity in developing and implementing such activities; and
(11)a description of how activities funded under this subpart will be evaluated, monitored, and publically reported.
(d)(1)In awarding a grant under this subpart, the Secretary shall give priority to an eligible entity that concentrates the activities proposed to be assisted under the grant on teachers, principals, or other school leaders serving in high-need schools.
(2)To the extent practicable, the Secretary shall ensure an equitable geographic distribution of grants under this subpart, including the distribution of such grants between rural and urban areas.
(e)(1)An eligible entity that receives a grant under this subpart shall use the grant funds to develop, implement, improve, or expand, in collaboration with teachers, principals, other school leaders, and members of the public, a performance-based compensation system or human capital management system consistent with this subpart.
(2)Grant funds under this subpart may be used for one or more of the following:
(A)Developing or improving an evaluation and support system, including as part of a human capital management system as applicable, that—
(i)reflects clear and fair measures of teacher, principal, or other school leader performance, based in part on demonstrated improvement in student academic achievement; and
(ii)provides teachers, principals, or other school leaders with ongoing, differentiated, targeted, and personalized support and feedback for improvement, including professional development opportunities designed to increase effectiveness.
(B)Conducting outreach within a local educational agency or a State to gain input on how to construct an evaluation and support system described in subparagraph (A) and to develop support for the evaluation and support system, including by training appropriate personnel in how to observe and evaluate teachers, principals, or other school leaders.
(C)Providing principals or other school leaders with—
(i)balanced autonomy to make budgeting, scheduling, and other school-level decisions in a manner that meets the needs of the school without compromising the intent or essential components of the policies of the local educational agency or State; and
(ii)authority to make staffing decisions that meet the needs of the school, such as building an instructional leadership team that includes teacher leaders or offering opportunities for teams or pairs of effective teachers or candidates to teach or start teaching in high-need schools together.
(D)Implementing, as part of a comprehensive performance-based compensation system, a differentiated salary structure, which may include bonuses and stipends, to—
(i)teachers who—
(I)teach in—
(aa)high-need schools; or
(bb)high-need subjects;
(II)raise student academic achievement; or
(III)take on additional leadership responsibilities; or
(ii)principals or other school leaders who serve in high-need schools and raise student academic achievement in the schools.
(E)Improving the local educational agency’s system and process for the recruitment, selection, placement, and retention of effective teachers, principals, or other school leaders in high-need schools, such as by improving local educational agency policies and procedures to ensure that high-need schools are competitive and timely in—
(i)attracting, hiring, and retaining effective educators;
(ii)offering bonuses or higher salaries to effective educators; or
(iii)establishing or strengthening school leader residency programs and teacher residency programs.
(F)Instituting career advancement opportunities characterized by increased responsibility and pay that reward and recognize effective teachers, principals, or other school leaders in high-need schools and enable them to expand their leadership and results, such as through teacher-led professional development, mentoring, coaching, hybrid roles, administrative duties, and career ladders.
(f)Each eligible entity that receives a grant under this subpart shall provide, from non-Federal sources, an amount equal to 50 percent of the amount of the grant (which may be provided in cash or in kind) to carry out the activities supported by the grant.
(g)Grant funds provided under this subpart shall be used to supplement, not supplant, other Federal or State funds available to carry out activities described in this subpart.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subpart, as amended by the Every Student Succeeds Act, referred to in subsec. (b)(3), probably means this subpart as enacted by Pub. L. 114–95, title II, § 2002, Dec. 10, 2015, 129 Stat. 1931.

Prior Provisions

A prior section 6632, Pub. L. 89–10, title II, § 2132, as added Pub. L. 107–110, title II, § 201, Jan. 8, 2002, 115 Stat. 1633, related to subgrants to eligible partnerships, prior to repeal by Pub. L. 114–95, § 5, title II, § 2002, Dec. 10, 2015, 129 Stat. 1806, 1913, effective Dec. 10, 2015, except with respect to certain noncompetitive programs and competitive programs.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Dec. 10, 2015, except with respect to certain noncompetitive programs and competitive programs, see section 5 of Pub. L. 114–95, set out as an

Effective Date

of 2015 Amendment note under section 6301 of this title.

Reference

Citations & Metadata

Citation

20 U.S.C. § 6632

Title 20Education

Last Updated

Apr 5, 2026

Release point: 119-73not60