[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4415 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 4415
To amend the Higher Education Act of 1965 regarding the use of TEACH
grants, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 28, 2026
Mr. Grassley (for himself, Mr. Reed, and Mr. Gallego) introduced the
following bill; which was read twice and referred to the Committee on
Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 regarding the use of TEACH
grants, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``TEACH Improvement Act of 2026''.
SEC. 2. TEACH GRANTS.
Subpart 9 of part A of title IV of the Higher Education Act of 1965
(20 U.S.C. 1070g et seq.) is amended to read as follows:
``Subpart 9--TEACH Grants
``SEC. 420L. DEFINITIONS.
``For the purposes of this subpart:
``(1) Eligible institution.--The term `eligible
institution' means an institution of higher education, as
defined in section 102, that the Secretary determines--
``(A) provides high-quality teacher preparation and
professional development services, including extensive
clinical experience as a part of pre-service
preparation;
``(B) is financially responsible and is not subject
to heightened cash monitoring or provisional
certification;
``(C) provides pedagogical coursework, or
assistance in the provision of such coursework,
including the monitoring of student performance, and
formal instruction related to the theory and practices
of teaching; and
``(D) provides supervision and support services to
teachers, or assistance in the provision of such
services, including mentoring focused on developing
effective teaching skills and strategies.
``(2) Post-baccalaureate.--The term `post-baccalaureate'
means a program of instruction for individuals who have
completed a baccalaureate degree that--
``(A) is offered by an eligible institution that
does not offer a baccalaureate degree in education;
``(B) does not lead to a graduate degree; and
``(C) consists of courses required by a State in
order for a teacher candidate to receive a professional
certification or licensing credential that is required
for employment as a teacher in an elementary school or
secondary school in that State.
``(3) Teacher candidate.--The term `teacher candidate'
means a student or teacher described in subparagraph (A) or (B)
of section 420N(a)(2).
``SEC. 420M. PROGRAM ESTABLISHED.
``(a) Program Authority.--
``(1) Payments required.--The Secretary shall pay to each
eligible institution such sums as may be necessary to pay to
each teacher candidate who files an application and agreement
in accordance with section 420N, and who qualifies under
paragraph (2) of section 420N(a), a TEACH Grant in the amount
of--
``(A) in the case of an applicant who is not an
applicant under section 420N(a)(2)(B)--
``(i) $4,000 for each of the first 2 years
during which that teacher candidate is in
attendance at the institution; and
``(ii) $5,000 for each of the second 2
years during which that teacher candidate is in
attendance at the institution; and
``(B) in the case of an applicant under section
420N(a)(2)(B), $5,000 for each year during which that
individual is in attendance at the institution.
``(2) References.--Grants made under paragraph (1) shall be
known as `Teacher Education Assistance for College and Higher
Education Grants' or `TEACH Grants'.
``(b) Payment Methodology.--
``(1) Prepayment.--
``(A) In general.--Not less than 85 percent of any
funds provided to an eligible institution under
subsection (a) shall be advanced to the eligible
institution prior to the start of each payment period
and shall be based upon an amount requested by the
institution as needed to pay teacher candidates until
such time as the Secretary determines and publishes in
the Federal Register, with an opportunity for comment,
an alternative payment system that provides payments to
institutions in an accurate and timely manner, subject
to subparagraph (B).
``(B) Reimbursement authority.--Subparagraph (A)
shall not be construed to limit the authority of the
Secretary to place an institution on a reimbursement
system of payment.
``(2) Direct payment.--Nothing in this section shall be
interpreted to prohibit the Secretary from paying directly to
teacher candidates, in advance of the beginning of the academic
term, an amount for which teacher candidates are eligible, in
cases in which the eligible institution elects not to
participate in the disbursement system required by paragraph
(1).
``(3) Distribution of grants to teacher candidates.--
Payments under this subpart shall be made, in accordance with
regulations promulgated by the Secretary for such purpose, in
such manner as will best accomplish the purposes of this
subpart. Any disbursement allowed to be made by crediting the
teacher candidate's account shall be used for any component of
the cost of attendance for the teacher candidate, as selected
by the teacher candidate.
``(c) Reductions in Amount.--
``(1) Part-time students.--In any case in which a teacher
candidate attends an eligible institution on less than a full-
time basis (including a teacher candidate who attends an
eligible institution on less than a half-time basis) during any
year, the amount of a grant under this subpart for which that
teacher candidate is eligible shall be reduced in proportion to
the degree to which that teacher candidate is not attending on
a full-time basis, in accordance with a schedule of reductions
established by the Secretary for the purposes of this subpart,
computed in accordance with this subpart. Such schedule of
reductions shall be established by regulation and published in
the Federal Register in accordance with section 482.
``(2) No exceeding cost.--The amount of a grant awarded
under this subpart, in combination with Federal assistance and
other assistance the student may receive, shall not exceed the
cost of attendance at the eligible institution at which that
teacher candidate is in attendance.
``(d) Period of Eligibility for Grants.--
``(1) Undergraduate and post-baccalaureate students.--The
period during which an undergraduate or post-baccalaureate
student may receive grants under this subpart shall be the
period required for the completion of the first undergraduate
baccalaureate or post-baccalaureate course of study being
pursued by the teacher candidate at the eligible institution at
which the teacher candidate is in attendance, except that--
``(A) any period during which the teacher candidate
is enrolled in a noncredit or remedial course of study
as described in paragraph (3) shall not be counted for
the purpose of this paragraph; and
``(B) the total amount that a teacher candidate may
receive under this subpart for undergraduate or post-
baccalaureate study shall not exceed $18,000.
``(2) Graduate students.--The period during which a
graduate student may receive grants under this subpart shall be
the period required for the completion of a master's degree
course of study pursued by the teacher candidate at the
eligible institution at which the teacher candidate is in
attendance, except that the total amount that a teacher
candidate may receive under this subpart for graduate study
shall not exceed $10,000.
``(3) Remedial course; study abroad.--Nothing in this
section shall be construed to exclude from eligibility courses
of study which are noncredit or remedial in nature (including
courses in English language acquisition) that are determined by
the eligible institution to be necessary to help the teacher
candidate be prepared for the pursuit of a first undergraduate
baccalaureate or post-baccalaureate degree or certificate or,
in the case of courses in English language instruction, to be
necessary to enable the teacher candidate to utilize already
existing knowledge, training, or skills. Nothing in this
section shall be construed to exclude from eligibility programs
of study abroad that are approved for credit by the home
institution at which the teacher candidate is enrolled.
``(e) Institutional Eligibility Based on Candidates' Failure To
Complete Service.--
``(1) 50 percent threshold requirements.--Notwithstanding
subsections (a) and (b) and beginning for award year 2026-2027
and each subsequent award year, an institution for which,
during the period of the 3 preceding consecutive award years
(referred to in this subsection as the `applicable period'), 50
percent or more of the covered TEACH grant recipients (defined,
for purposes of this subsection, as TEACH Grant recipients who
graduated from such institution and had an outstanding service
obligation during the applicable period) have had their grant
converted to loans under section 420N(c)(1) during the
applicable period shall--
``(A) for the 3-year period beginning on the last
day of the applicable period, be ineligible to offer
TEACH Grants to students at the institution who did not
receive a TEACH grant from the institution for the
preceding award year; and
``(B) beginning 3 years after the last day of the
applicable period, be eligible to submit an application
to offer TEACH Grants to students but only in
accordance with the requirements of paragraph (2), for
3 award years.
``(2) 40 percent threshold requirements.--Notwithstanding
subsections (a) and (b), an institution for which, during an
applicable period, 40 percent or more of the covered TEACH
Grant recipients have had their TEACH Grants converted to loans
under section 420N(c)(1) shall--
``(A) for a period of 3 award years--
``(i) not be permitted to offer any student
a TEACH Grant during the student's first
academic year attending an institution of
higher education;
``(ii) provide a student with student
teaching experience prior to offering the
student a TEACH Grant; and
``(iii) be required to provide additional
financial aid counseling to students
participating in the TEACH Grant program, or
who express a desire to participate in the
TEACH Grant program; and
``(B) be required to establish a task force that
prepares a plan to--
``(i) identify contributing factors leading
to high loan conversion rates; and
``(ii) establish measurable objectives and
actionable steps, besides counseling students,
to improve the loan conversion rate.
``(3) Reentry into full eligibility.--An institution
subject to the requirements of paragraph (2) (including an
institution subject to such paragraph as required under
paragraph (1)(B)) shall be eligible to apply to the Secretary
to restore full eligibility and remove the restrictions under
paragraph (2) when--
``(A) the institution has completed not less than 3
award years of participating as described in such
paragraph;
``(B) during the period of the 3 immediately
preceding award years of such participation, less than
40 percent of the covered TEACH grant recipients have
had their TEACH grants converted to loans under section
420N(c)(1); and
``(C) the institution has established the task
force and improvement plan as required under paragraph
(2)(B), made demonstrable progress on such improvement
plan, and continues to engage in review and technical
assistance in order to improve the loan conversion
rate.
``(4) Technical assistance and dissemination of best
practices.--The Secretary shall--
``(A) provide technical assistance to institutions
seeking to retain or regain eligibility under this
section; and
``(B) disseminate best practices outlined in
section 420P(b)(7) for minimizing the conversion of
TEACH grants into loans.
``SEC. 420N. APPLICATIONS; ELIGIBILITY.
``(a) Applications; Demonstration of Eligibility.--
``(1) Filing required.--The Secretary shall periodically
set dates by which teacher candidates shall file applications
for TEACH grants. Each teacher candidate desiring a TEACH grant
for any year shall file an application containing such
information and assurances as the Secretary may determine
necessary to enable the Secretary to carry out the functions
and responsibilities of this subpart.
``(2) Demonstration of teach grant eligibility.--Each
application submitted under paragraph (1) shall contain such
information as is necessary to demonstrate that--
``(A) if the applicant is an enrolled student--
``(i) the student is an eligible student
for purposes of section 484;
``(ii) the student--
``(I) has a grade point average
that is determined, under standards
prescribed by the Secretary, to be
comparable to a 3.25 average on a zero
to 4.0 scale, except that, if the
student is in the first year of a
program of undergraduate education,
such grade point average shall be
determined on the basis of the
student's cumulative secondary school
grade point average; or
``(II) displayed high academic
aptitude by receiving a score above the
75th percentile on at least one of the
batteries in an undergraduate, post-
baccalaureate, or graduate school
admissions test; and
``(iii) the student is completing
coursework and other requirements necessary to
begin a career in teaching, or plans to
complete such coursework and requirements prior
to graduating; or
``(B) if the applicant is a current or prospective
teacher applying for a grant to obtain a graduate
degree--
``(i) the applicant is a teacher or a
retiree from another occupation with expertise
in a field in which there is a shortage of
teachers, such as mathematics, science, special
education, English language acquisition, or
another high-need subject;
``(ii) the applicant is or was a teacher
who is using high-quality alternative
certification routes; or
``(iii) the applicant is a practicing
teacher in another field and is pursuing an
additional credential in a field in which there
is a shortage of teachers, such as mathematics,
science, special education, English language
acquisition, or another high-need subject.
``(b) Agreements To Serve.--Each application under subsection (a)
shall contain or be accompanied by an agreement by the applicant that--
``(1) the applicant will--
``(A) serve as a full-time teacher for a total of
not less than 4 academic years within 8 years after
completing the course of study for which the applicant
received a TEACH Grant (referred to in this section as
the `service obligation window');
``(B) teach in a school described in section
465(a)(2)(A);
``(C) teach in any of the following fields--
``(i) mathematics;
``(ii) science;
``(iii) a foreign language;
``(iv) bilingual education;
``(v) special education;
``(vi) as a reading specialist;
``(vii) career and technical education;
``(viii) school mental health; or
``(ix) another field or geographic area
documented as high-need by the Federal
Government, State government, or local
educational agency, and approved by the
Secretary;
``(D) submit evidence of such employment in the
form of a certification of employment by the chief
administrative officer of the school, in accordance
with subsection (d)(5), upon completion of each year of
such service; and
``(E) meet all State certification requirements for
teaching (which may include meeting such requirements
through a certification obtained through alternative
routes to teaching);
``(2) in the event that the applicant is determined to have
failed or refused to carry out such service obligation, an
amount equal to any TEACH Grants received by such applicant,
prorated in accordance with subsection (c)(1)(B), will be
treated as a loan and collected from the applicant in
accordance with subsection (c) and the regulations thereunder;
and
``(3) contains, or is accompanied by, a plain-language
disclosure form developed by the Secretary that clearly
describes the nature of the TEACH Grant award, the service
obligation, and the loan repayment requirements that are the
consequence of the failure to complete the service obligation.
``(c) Repayment for Failure To Complete Service.--
``(1) In general.--In the event that any recipient of a
TEACH grant fails or refuses to comply with some or all of the
service obligation required under the agreement under
subsection (b)--
``(A) the Secretary shall determine the proportion
of the total amount of time of the service obligation
that the recipient has failed or refused to complete;
and
``(B) the Secretary shall--
``(i) determine, on a prorated basis based
on the proportion described in subparagraph
(A), the amounts of any TEACH Grants received
by such recipient that shall, upon a
determination of such a failure or refusal in
such service obligation, be treated as a
Federal Direct Stafford Loan under part D
(except that such loan shall not begin to
accrue interest until the time of conversion);
and
``(ii) ensure that such amounts are subject
to repayment, in accordance with terms and
conditions specified by the Secretary in
regulations under this subpart.
``(2) Reconsideration of conversion decisions.--
``(A) Request to reconsider.--In any case where the
Secretary has determined that a recipient of a TEACH
grant has failed or refused to comply with the service
obligation in the agreement under subsection (b) and
has converted the grant into a Federal loan in
accordance with paragraph (1), (including a TEACH Grant
converted to a loan prior to the date of enactment of
the Consider Teachers Act of 2021, and including cases
where such loans have been fully or partially paid),
the recipient may request that the Secretary reconsider
such initial determination and may submit additional
information to demonstrate satisfaction of the service
obligation. Upon receipt of such a request, the
Secretary shall reconsider the determination in
accordance with this paragraph not later than 90 days
after the date that such request was received.
``(B) Reconsideration.--If, in reconsidering an
initial determination under subparagraph (A) regarding
a conversion of a TEACH grant into a Federal loan in
accordance with paragraph (1) (including
reconsideration related to a TEACH Grant that was
converted to a loan prior to the date of enactment of
the Consider Teachers Act of 2021, and including cases
where such loans were fully or partially paid), the
Secretary determines that the reason for such
determination was the recipient's failure to timely
submit a certification required under subsection
(b)(1)(D) (as in effect on the day before the date of
enactment of the Consider Teachers Act of 2021), an
error or processing delay by the Secretary, a change to
the fields considered eligible for fulfillment of the
service obligation (as described in subsection
(b)(1)(C)), a recipient having previously requested to
have the TEACH Grant converted to a loan, or another
valid reason determined by the Secretary, and that the
recipient has, as of the date of the reconsideration,
demonstrated that the recipient did meet, or is
meeting, the service obligation in the agreement under
subsection (b), the Secretary shall--
``(i) discharge the Federal loan and
reinstate the recipient's TEACH grant under
this subpart;
``(ii) discharge any interest or fees that
may have accumulated during the period that the
grant was converted to such Federal loan;
``(iii) if the recipient has other loans
under part D, apply any payments made for such
Federal loan during such period to those other
loans under part D;
``(iv) if the recipient does not have other
loans under part D, reimburse the recipient for
any amounts paid on such loan during such
period;
``(v) request that consumer reporting
agencies remove any negative credit reporting
due to the conversion of the TEACH Grant to a
Federal loan; and
``(vi) use the additional information
provided under subparagraph (A) to determine
the progress the recipient has made in meeting
the service obligation.
``(C) Extension of time to complete service
obligation.--In the case of a recipient whose TEACH
Grant was reinstated in accordance with subparagraph
(B), the Secretary shall, upon such reinstatement--
``(i) extend the time remaining for the
recipient to fulfill the service obligation
described in subsection (b)(1) to a period of
time equal to--
``(I) 8 years; minus
``(II) the number of full academic
years of teaching that the recipient
completed prior to the reconversion of
the loan to a TEACH Grant under
subparagraph (B), including any years
of qualifying teaching completed during
the period when the TEACH Grant was in
loan status; and
``(ii) treat any full academic years of
teaching described in clause (i)(II) as years
that count toward the individual's service
obligation (regardless of whether the TEACH
Grant funds were in grant or loan status) if
that time otherwise meets the requirements of
this section.
``(d) Additional Administrative Provisions.--
``(1) Change to school or high-need field.--
``(A) Change of high-need field designation after
acquiring degree or expertise.--Notwithstanding
subsection (b), if a recipient of an initial TEACH
grant has acquired an academic degree, or expertise, in
a field that was, at the time of the recipient's
application for that grant, designated as high need in
accordance with subsection (b)(1)(C)(ix), but is no
longer so designated, the grant recipient may fulfill
the service obligation described in subsection (b)(1)
by teaching in that field and completing the required
period of service within the service obligation window.
``(B) Change of high-need field or school
designation after beginning teaching.--Notwithstanding
subsection (b), if a recipient of a TEACH grant on or
after the effective date of the TEACH Improvement Act
of 2026 begins teaching at a school described in
subsection (b)(1)(B) and in a field described in
subsection (b)(1)(C) during the service obligation
window, but such school or field later is no longer
designated under subsection (b), the grant recipient
may fulfill the service obligation described in
subsection (b)(1) by continuing to teach in that school
and field and completing the required period of service
within the service obligation window.
``(2) Extenuating circumstances.--The Secretary shall
establish, by regulation, categories of extenuating
circumstances under which a recipient of a TEACH grant who is
unable to fulfill all or part of the recipient's service
obligation may be excused from fulfilling that portion of the
service obligation.
``(3) Communication with recipients.--The Secretary shall
notify TEACH grant recipients not less than once per calendar
year regarding how to submit the employment certification under
subsection (b)(1)(D) and the recommendations and requirements
for submitting that certification under paragraph (5).
``(4) Qualifying schools and high-need fields.--The
Secretary shall maintain and annually update a list of
qualifying schools as described in subsection (b)(1)(B), and a
list of high-need fields as described in subsection (b)(1)(C),
and shall make such lists publicly available on the
Department's website in a sortable and searchable format.
``(5) Submission of employment certification.--
``(A) Recommended submissions.--The Secretary shall
notify TEACH Grant recipients that the Department
recommends that TEACH Grant recipients submit the
employment certification described in subsection
(b)(1)(D) as soon as practicable after the completion
of each year of service.
``(B) Required submission.--A TEACH Grant recipient
shall be required to submit to the Department
employment certification within the timeframe that
would allow that individual to complete their service
obligation before the end of the service obligation
window.
``(C) Notification.--The Secretary shall notify
TEACH Grant recipients of the required submission
deadlines described in this paragraph.
``(D) Adjustment of deadline.--The Secretary shall
adjust the submission deadline described in
subparagraph (B) to account for a service obligation
window extension.
``(E) Alternative to certification.--The Secretary
shall provide an alternative to the certification of
employment described in subsection (b)(1)(D) for
recipients who cannot obtain such required
certification of employment from the chief
administrative officer of the school because the
recipient can demonstrate the school is no longer in
existence or the school refuses to cooperate.
``SEC. 420O. PROGRAM PERIOD AND FUNDING.
``Beginning on July 1, 2008, there shall be available to the
Secretary to carry out this subpart, from funds not otherwise
appropriated, such sums as may be necessary to provide TEACH Grants in
accordance with this subpart to each eligible applicant.
``SEC. 420P. REPORTS TO AUTHORIZING COMMITTEES.
``(a) Program Reports.--Not later than two years after the date of
enactment of the TEACH Improvement Act of 2026, and every two years
thereafter, the Secretary shall prepare and submit to the authorizing
committees a report on TEACH grants with respect to the schools and
students served by recipients of such grants. Such report shall take
into consideration information related to--
``(1) the number of TEACH grant recipients;
``(2) the degrees obtained by such recipients;
``(3) the location, including the school, local educational
agency, and State, where the recipients completed the service
agreed to under section 420N(b), and the field taught;
``(4) the duration of such service; and
``(5) any other data necessary to conduct such evaluation.
``(b) Annual Reports.--Not later than 1 year after the date of
enactment of the TEACH Improvement Act of 2026, and annually
thereafter, the Secretary shall prepare and submit to the authorizing
committees a report regarding the 1-year period covered by the report,
including the following:
``(1) The number of TEACH grants converted to loans under
section 420N(c)(1)(B).
``(2) The number of institutions that were subject to the
heightened requirements under section 420M(e)(1).
``(3) The number of institutions that were subject to the
heightened requirements under section 420M(e)(2).
``(4) The number of TEACH grants converted to loans under
section 420N(c)(1)(B) that were reconverted to TEACH grants in
accordance with section 420N(c)(2).
``(5) The number of contacts or complaints to the
Department of Education or the Consumer Financial Protection
Bureau (including through any ombudsman) received from a TEACH
grant recipient, and the resolutions of those contacts or
complaints.
``(6) Demographic information about recipients of TEACH
grants, including race, ethnicity, and gender.
``(7) Recommendations on best practices for minimizing the
conversion of TEACH grants into loans.
``SEC. 420Q. SERVICER ACCOUNTABILITY.
``The Secretary shall prescribe such regulations as may be
necessary to ensure accurate administrative oversight and appropriate
penalties for third party servicers in order to ensure that--
``(1) such servicers properly perform their contractual
obligations with respect to this subpart; and
``(2) such servicers are held responsible with respect to
the loss of benefits of TEACH grant recipients due to servicer
failures.''.
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall take effect on July 1, 2026.
<all>