This bill revises the Teacher Education Assistance for College and Higher Education (TEACH) grant program. The TEACH program awards grants to undergraduate and graduate students who commit to teaching in a high-need field and in an elementary or secondary school that serves low-income students.

First, the bill raises the maximum amount for TEACH grants.

Second, the bill allows TEACH grants to cover the full cost of attendance. Currently, these grants may be used only for tuition, fees, and on-campus housing.

The bill allows teaching in a high-need early childhood education program to count toward service requirements for the program.

Next, the bill eliminates the process for converting a TEACH grant to a loan if a recipient does not complete the requirements of the program. Further, the bill prohibits the Department of Education (ED) from instituting or creating a monetary penalty for failure or refusal to complete the service requirement.

In addition, the bill requires ED to send an electronic certificate to grant recipients who have completed their service requirement.

The bill also exempts the TEACH program from sequestration, which is a process of automatic, usually across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals.