---
kind: "section"
citation: "20 U.S.C. § 6632"
title: "20"
title_heading: "Education"
number: "6632"
heading: "Teacher and school leader incentive fund grants"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/6632"
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"
---

# §6632. Teacher and school leader incentive fund grants

- (a) **Grants authorized—** From the amounts reserved by the [Secretary](/usc/20/7801.md?p=46) under [section 6621(1) of this title](/usc/20/6621.md?p=1), the [Secretary](/usc/20/7801.md?p=46) shall award grants, on a competitive basis, to [eligible entities](/usc/20/6631.md?p=b-1) to enable the [eligible entities](/usc/20/6631.md?p=b-1) to develop, implement, improve, or [expand](/usc/20/7221i.md?p=7) [performance-based compensation systems](/usc/20/6631.md?p=b-4) or [human capital management systems](/usc/20/6631.md?p=b-3), in schools served by the [eligible entity](/usc/20/6631.md?p=b-1).
- (b) **Duration of grants—**
  - (1) **In general—** A grant awarded under this subpart shall be for a period of not more than 3 years.
  - (2) **Renewal—** The [Secretary](/usc/20/7801.md?p=46) may renew a grant awarded under this subpart for a period of not more than 2 years if the grantee demonstrates to the [Secretary](/usc/20/7801.md?p=46) that the grantee is effectively using funds. Such renewal may include allowing the grantee to scale up or [replicate](/usc/20/7221i.md?p=9) the successful program.
  - (3) **Limitation—** A [local educational agency](/usc/20/7801.md?p=30-A) 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,[^1] only twice.
- (c) **Applications—** An [eligible entity](/usc/20/6631.md?p=b-1) desiring a grant under this subpart shall submit an application to the [Secretary](/usc/20/7801.md?p=46) at such time and in such manner as the [Secretary](/usc/20/7801.md?p=46) may reasonably require. The application shall include—
  - (1) a description of the [performance-based compensation system](/usc/20/6631.md?p=b-4) or [human capital management system](/usc/20/6631.md?p=b-3) that the [eligible entity](/usc/20/6631.md?p=b-1) proposes to develop, implement, improve, or [expand](/usc/20/7221i.md?p=7) through the grant;
  - (2) a description of the most significant gaps or insufficiencies in student access to effective teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) in [high-need schools](/usc/20/6631.md?p=b-2), including gaps or inequities in how effective teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) are distributed across the [local educational agency](/usc/20/7801.md?p=30-A), 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](/usc/20/7801.md?p=44), which may include [charter school](/usc/20/7221i.md?p=2) leaders, in the school (including organizations representing teachers, principals, or other [school leaders](/usc/20/7801.md?p=44)), the community, and the [local educational agency](/usc/20/7801.md?p=30-A) to the activities proposed under the grant;
  - (4) a description of how the [eligible entity](/usc/20/6631.md?p=b-1) will develop and implement a fair, rigorous, valid, reliable, and objective process to evaluate teacher, principal, or other [school leader](/usc/20/7801.md?p=44) 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](/usc/20/7801.md?p=30-A) or schools to be served under the grant, including such student academic achievement, demographic, and socioeconomic information as the [Secretary](/usc/20/7801.md?p=46) may request;
  - (6) a description of the effectiveness of teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) in the [local educational agency](/usc/20/7801.md?p=30-A) 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](/usc/20/7801.md?p=44) in such schools;
  - (7) a description of how the [eligible entity](/usc/20/6631.md?p=b-1) 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](/usc/20/6631.md?p=b-1) will continue the activities assisted under the grant after the grant period ends;
  - (9) a description of the [State](/usc/20/6602.md?p=2), 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](/usc/20/7801.md?p=21-A); and
    - (C) if applicable, the prior experience of the [eligible entity](/usc/20/6631.md?p=b-1) 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) **Award basis—**
  - (1) **Priority—** In awarding a grant under this subpart, the [Secretary](/usc/20/7801.md?p=46) shall give priority to an [eligible entity](/usc/20/6631.md?p=b-1) that concentrates the activities proposed to be assisted under the grant on teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) serving in [high-need schools](/usc/20/6631.md?p=b-2).
  - (2) **Equitable distribution—** To the extent practicable, the [Secretary](/usc/20/7801.md?p=46) shall ensure an equitable geographic distribution of grants under this subpart, including the distribution of such grants between rural and urban areas.
- (e) **Use of funds—**
  - (1) **In general—** An [eligible entity](/usc/20/6631.md?p=b-1) that receives a grant under this subpart shall use the grant funds to develop, implement, improve, or [expand](/usc/20/7221i.md?p=7), in collaboration with teachers, principals, other [school leaders](/usc/20/7801.md?p=44), and members of the public, a [performance-based compensation system](/usc/20/6631.md?p=b-4) or [human capital management system](/usc/20/6631.md?p=b-3) consistent with this subpart.
  - (2) **Authorized activities—** 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](/usc/20/6631.md?p=b-3) as applicable, that—
      - (i) reflects clear and fair measures of teacher, principal, or other [school leader](/usc/20/7801.md?p=44) performance, based in part on demonstrated improvement in student academic achievement; and
      - (ii) provides teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) with ongoing, differentiated, targeted, and personalized support and feedback for improvement, including [professional development](/usc/20/7801.md?p=42) opportunities designed to increase effectiveness.
    - (B) Conducting outreach within a [local educational agency](/usc/20/7801.md?p=30-A) or a [State](/usc/20/6602.md?p=2) to gain input on how to construct an evaluation and support system described in [subparagraph (A)](#e-2-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](/usc/20/7801.md?p=44).
    - (C) Providing principals or other [school leaders](/usc/20/7801.md?p=44) 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](/usc/20/7801.md?p=30-A) or [State](/usc/20/6602.md?p=2); 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](/usc/20/6631.md?p=b-2) together.
    - (D) Implementing, as part of a comprehensive [performance-based compensation system](/usc/20/6631.md?p=b-4), a differentiated salary structure, which may include bonuses and stipends, to—
      - (i) teachers who—
        - (I) teach in—
          - (aa) [high-need schools](/usc/20/6631.md?p=b-2); or
          - (bb) high-need subjects;
        - (II) raise student academic achievement; or
        - (III) take on additional leadership responsibilities; or
      - (ii) principals or other [school leaders](/usc/20/7801.md?p=44) who serve in [high-need schools](/usc/20/6631.md?p=b-2) and raise student academic achievement in the schools.
    - (E) Improving the [local educational agency](/usc/20/7801.md?p=30-A)’s system and process for the recruitment, selection, placement, and retention of effective teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) in [high-need schools](/usc/20/6631.md?p=b-2), such as by improving [local educational agency](/usc/20/7801.md?p=30-A) policies and procedures to ensure that [high-need schools](/usc/20/6631.md?p=b-2) 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](/usc/20/6602.md?p=1) and [teacher residency programs](/usc/20/6602.md?p=5).
    - (F) Instituting career advancement opportunities characterized by increased responsibility and pay that reward and recognize effective teachers, principals, or other [school leaders](/usc/20/7801.md?p=44) in [high-need schools](/usc/20/6631.md?p=b-2) and enable them to [expand](/usc/20/7221i.md?p=7) their leadership and results, such as through teacher-led [professional development](/usc/20/7801.md?p=42), [mentoring](/usc/20/7801.md?p=31), coaching, hybrid roles, administrative duties, and career ladders.
- (f) **Matching requirement—** Each [eligible entity](/usc/20/6631.md?p=b-1) 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) **Supplement, not supplant—** Grant funds provided under this subpart shall be used to supplement, not supplant, other Federal or [State](/usc/20/6602.md?p=2) funds available to carry out activities described in this subpart.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 89–10, title II, § 2212, as added Pub. L. 114–95, title II, § 2002, Dec. 10, 2015, 129 Stat. 1932.)

## Notes

### 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.