---
kind: "section"
citation: "20 U.S.C. § 6631"
title: "20"
title_heading: "Education"
number: "6631"
heading: "Purposes; definitions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/6631"
units:
  - "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"
---

# §6631. Purposes; definitions

- (a) **Purposes—** The purposes of this subpart are—
  - (1) to assist [States](/usc/20/6602.md?p=2), [local educational agencies](/usc/20/7801.md?p=30-A), and nonprofit organizations to develop, implement, improve, or [expand](/usc/20/7221i.md?p=7) comprehensive [performance-based compensation systems](#b-4) or [human capital management systems](#b-3) for teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) (especially for teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) in [high-need schools](#b-2)) who raise student academic achievement and close the achievement gap between high- and low-performing students; and
  - (2) to study and review [performance-based compensation systems](#b-4) or [human capital management systems](#b-3) for teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) to evaluate the effectiveness, fairness, quality, consistency, and reliability of the systems.
- (b) **Definitions—** In this subpart:
  - (1) **Eligible entity—** The term “eligible entity” means—
    - (A) a [local educational agency](/usc/20/7801.md?p=30-A), including a [charter school](/usc/20/7221i.md?p=2) that is a [local educational agency](/usc/20/7801.md?p=30-A), or a consortium of [local educational agencies](/usc/20/7801.md?p=30-A);
    - (B) a [State educational agency](/usc/20/7801.md?p=49) or other [State](/usc/20/6602.md?p=2) agency designated by the chief executive of a [State](/usc/20/6602.md?p=2) to participate under this subpart;
    - (C) the Bureau of [Indian](/usc/20/7491.md?p=3) Education; or
    - (D) a partnership consisting of—
      - (i) 1 or more agencies described in subparagraph [(A)](#b-1-A), [(B)](#b-1-B), or [(C)](#b-1-C); and
      - (ii) at least 1 nonprofit or for-profit entity.
  - (2) **High-need school—** The term “high-need school” means a public [elementary school](/usc/20/7801.md?p=19) or [secondary school](/usc/20/7801.md?p=45) that is located in an area in which the percentage of students from families with incomes below the [poverty line](/usc/20/7801.md?p=41) is 30 percent or more.
  - (3) **Human capital management system—** The term “human capital management system” means a system—
    - (A) by which a [local educational agency](/usc/20/7801.md?p=30-A) makes and implements human capital decisions, such as decisions on preparation, recruitment, hiring, placement, retention, dismissal, compensation, [professional development](/usc/20/7801.md?p=42), tenure, and promotion; and
    - (B) that includes a [performance-based compensation system](#b-4).
  - (4) **Performance-based compensation system—** The term “performance-based compensation system” means a system of compensation for teachers, principals, or other [school leaders](/usc/20/7801.md?p=44)—
    - (A) that differentiates levels of compensation based in part on measurable increases in student academic achievement; and
    - (B) which may include—
      - (i) differentiated levels of compensation, which may include bonus pay, on the basis of the employment responsibilities and success of effective teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) in hard-to-staff schools or high-need subject areas; and
      - (ii) recognition of the skills and knowledge of teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) as demonstrated through—
        - (I) successful fulfillment of additional responsibilities or job functions, such as teacher leadership roles; and
        - (II) evidence of professional achievement and mastery of content knowledge and superior teaching and leadership skills.

## Source credit

(Pub. L. 89–10, title II, § 2211, as added Pub. L. 114–95, title II, § 2002, Dec. 10, 2015, 129 Stat. 1931.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 6631, Pub. L. 89–10, title II, § 2131, as added Pub. L. 107–110, title II, § 201, Jan. 8, 2002, 115 Stat. 1633, defined terms in subpart 3 of part A of former subchapter II of this chapter, 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.

A prior section 2211 of Pub. L. 89–10 was classified to section 6651 of this title, prior to the general amendment of this subchapter by Pub. L. 107–110.

### 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.