WASHINGTON, D.C. — Schools and education groups will have new opportunities to compete for federal funding aimed at improving teaching quality and student literacy under fiscal year 2026 grant programs announced by the Departments of Education and Labor.
What This Means for You
- Schools and nonprofits can apply for funding to improve literacy and teacher performance
- Grants will support programs tied to workforce needs and student outcomes
- Applications are available now through grants.gov
The Department of Education and the Department of Labor released two major grant competitions: the Teacher and School Leader Incentive Program and the Innovative Approaches to Literacy Program.
The Teacher and School Leader Incentive Program supports efforts to improve how schools recruit, evaluate, and compensate educators, including performance-based pay systems. Performance-based compensation ties part of a teacher’s pay to measures such as student outcomes or evaluations.
The Innovative Approaches to Literacy Program funds initiatives designed to improve reading and writing skills for students from early childhood through 12th grade, particularly in high-need school districts.
Coordination Between Agencies
The two agencies are coordinating the grant process as part of a broader effort to align education programs with workforce needs.
Under the arrangement, awards will be managed through the Department of Labor’s GrantSolutions platform, a system used to administer federal grants and provide oversight.
Officials said the partnership is intended to better connect classroom learning with job skills and workforce demands.
“By investing in effective educator development programs and proven literacy models, we are elevating innovative solutions that directly shape student outcomes,” said Assistant Secretary Kirsten Baesler.
“By integrating education with employment and occupational needs, we avoid aimless drift and empower individuals to live with purpose,” said Assistant Secretary for Employment and Training Dr. Henry Mack.
Policy Direction and Priorities
Federal officials said the current funding priorities will emphasize academic achievement, teacher retention, and programs that align education with industry needs.
The grants will also support initiatives such as at-home learning strategies, workforce development models, and approaches designed to give states greater flexibility in education systems.
Background and Next Steps
The effort builds on a partnership formalized in 2025 between the two departments through an interagency agreement, which allows federal agencies to share resources and coordinate programs more efficiently.
Officials said additional K-12 grant competitions are expected later this spring and summer.
Details and application materials for both programs are available at grants.gov.
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