Grants to support State efforts to increase teacher salaries

(a) Teacher salary incentive grants (1) Purpose The purpose of this section is to ensure that each teacher who is employed full-time at a qualifying school in a State earns an annual salary for any year of employment of not less than $60,000 (adjusted for inflation). (2) Grants for minimum salary threshold (A) In general From amounts made available to carry out this section, the Secretary of Education shall award 4-year grants to State educational agencies. (B) Application To be eligible to receive a grant under this section, a State educational agency shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require, including— (i) the plan required under subparagraph (C); and (ii) the assurances required under subparagraph (D). (C) Sustainability plan The Secretary shall require a State educational agency submitting an application under subparagraph (B) to provide a plan that demonstrates how, following the conclusion of the 4-year grant period, such agency will continue to maintain and adjust the annual base minimum salary in accordance with subsection (b). (D) Required assurances The Secretary shall require a State educational agency submitting an application under subparagraph (B) to provide an assurance in such application that— (i) if necessary to achieve the purpose of this section, the State will enact and enforce legislation to establish a statewide teacher salary schedule or otherwise to establish minimum teacher salary requirements; (ii) each teacher described in paragraph (1) will be compensated on a salary basis at an annual rate per school year that is not less than the salary threshold described in subsection (b); (iii) each teacher who is employed part-time at a qualifying school in a State will be compensated on a salary basis at an annual rate per school year that is not less than the salary threshold described in subsection (b), proportionately reduced in accordance with the number of hours worked by such teacher; (iv) priority will be given to local educational agencies in accordance with subparagraph (E)(ii); and (v) the State educational agency will, upon request by the Secretary, carry out the compliance demonstration in accordance with subsection (c)(3). (E) Subgrants (i) In general A State educational agency awarded a grant under this section shall use not less than 85 percent of the grant funds to award subgrants to local educational agencies to carry out the purpose of this section. (ii) Priority The State educational agency, in allocating funds to local educational agencies under this section, shall give priority to local educational agencies— (I) serving greater numbers or percentages of elementary or secondary schools receiving funds under title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.); or (II) with respect to which all of the schools served by the local educational agency are designated with a locale code of 41, 42, or 43, as determined by the Secretary. (b) Salary threshold (1) In general For school year 2027–2028, the base minimum salary dollar amount shall be $60,000. (2) Inflation adjustment For school year 2028–2029 and each succeeding school year, the dollar amount referred to in paragraph (1) shall be deemed to refer to the dollar amount calculated under this subsection for the preceding school year, increased by a percentage equal to the annual percentage increase in the Consumer Price Index for All Urban Consumers published by the Department of Labor for the most recent calendar year. (3) No salary limit The base minimum salary dollar amount may be greater than the dollar amount described in paragraphs (1) or (2). (c) Supplement, not supplant (1) In general Grant funds received under this section shall be used to supplement and not supplant other Federal, State, and local public funds that would, in the absence of such Federal funds, be made available for teacher base salaries. (2) Maintenance of effort A State educational agency or local educational agency shall not reduce or adjust any teacher pay or State teacher loan forgiveness program due to the eligibility of teachers within the jurisdiction of such agency for pay supplementation under this section. (3) Compliance demonstration to Secretary Each State educational agency and local educational agency, upon request by the Secretary, shall demonstrate that the methodology used to allocate teacher pay and State teacher loan forgiveness (if applicable) to teachers and qualifying schools ensures that each such teacher and school receives the same State and local funds for teacher compensation it would receive if this section had not been enacted.