Grassley, Reed Introduce Legislation to Modernize TEACH Grants, Increase Accountability for Higher Education Institutions

Grassley, Reed Introduce Legislation to Modernize TEACH Grants, Increase Accountability for Higher Education Institutions

Click HERE for audio

WASHINGTON - Sens. Chuck Grassley (R-Iowa) and Jack Reed (D-R.I.) introduced the TEACH Improvement Act to strengthen the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program by increasing financial support and training for future educators, while improving institutional accountability and reducing unintended loan conversions.

The Department of Education's TEACH Grant Program provides undergraduate and graduate students with federal grants to pursue coursework and teaching certifications. Over 400,000 TEACH Grants have been disbursed since the program was created in 2008.

"As the son of a schoolteacher, I learned the value of education from an early age. I want to make sure we have enough teachers to foster the next generation of leaders. My bipartisan bill improves access to federal resources so more people can establish a meaningful career in education," Grassley said.

"Good teachers encourage students and help them unlock and achieve their full potential. TEACH grants encourage and incentivize promising young educators to take their talents to schools and areas that often have trouble attracting teachers. This bill will strengthen and streamline TEACH grants to ensure they work well for teachers and meet the needs of schools, taxpayers, and the communities they serve. I'm proud to introduce this bipartisan bill with Senator Grassley to better support America's teachers and help them go the extra mile for students across the country," Reed said.

Click HERE for audio of Grassley discussing the legislation.

The bipartisan legislation has been endorsed by the following organizations: the University of Northern Iowa, the American Association of State Colleges and Universities (AASCU), Deans for Impact (DFI), the National Center for Teacher Residencies (NCTR), the American Association of Colleges for Teacher Education (AACTE), the National Association of Independent Colleges and Universities (NAICU) and the American Council on Education (ACE).

"At the University of Northern Iowa, the TEACH Grant is critical to recruiting and preparing future educators for high-need fields and underserved communities. The TEACH Improvement Act represents an important step forward - strengthening the program, increasing support for future educators, and ensuring clearer accountability so students can fulfill their service without unintended financial consequences. We are grateful to Senators Chuck Grassley and Jack Reed for their leadership in sustaining this pipeline into the teaching profession. At a time of persistent teacher shortages - especially in high-need areas - this legislation will help more talented students answer the call to teach and stay in the classroom," said Mark Nook, President of the University of Northern Iowa.

"Teacher preparation programs are at the heart of what it means to be one of the 520 regional public universities across the country. The TEACH Grant is an important tool that helps more students get the education they need to be excellent teachers. It increases the pipeline of highly effective teachers in communities that need them most. We commend Senators Grassley and Reed for their continued leadership in strengthening the teachers' pipeline and for their commitment to this vital program," said Charles L. Welch, President and CEO of AASCU.

"The TEACH Improvement Act is an important step toward making high-quality pathways into teaching more accessible. By holding teacher training programs responsible for lowering grant-to-loan conversion rates, the legislation helps ensure aspiring educators can count on TEACH grants without the fear of falling into repayment without support from their programs. At the same time, its focus on high-quality preparation through hands-on experience, effective coursework, and ongoing mentorship will help more teachers enter the classroom ready to support student success. Together, these changes will expand access to teaching while ensuring a more effective, well-prepared educator workforce for students and communities nationwide," said Valerie Sakimura, Executive Director of DFI.

"Every student deserves a well-prepared, highly supported teacher-and that starts with meaningful investments in the educator workforce. Increasing the TEACH Grant through the TEACH Improvement Act is a critical step toward making high-quality preparation programs, including teacher residencies and apprenticeships, more accessible and affordable to aspiring educators. These investments not only strengthen the teaching profession but also help ensure that our most underserved schools can attract and retain talented educators who reflect and value the communities they serve," said Kathlene Campbell, Ph.D., CEO of NCTR.

"For too many prospective teachers, financial barriers stand in the way of entering and completing preparation programs - particularly during the clinical experiences that are essential to becoming effective educators and are often unpaid. AACTE is pleased to endorse the TEACH Improvement Act, which strengthens financial support for teacher candidates at this critical stage and establishes clear, reasonable requirements to help ensure participants meet the program's service commitments. We thank Senators Grassley and Reed for their longstanding support of the educator workforce," said Cheryl Holcomb-McCoy, Ph.D., President and CEO of AACTE.

Background:

Over 400,000 teacher positions, or about 1 in 8 of all positions nationally, were either unfilled or filled by teachers who were not fully certified, according to a 2025 analysis from the Learning Policy Institute.

The TEACH Grant Program aims to fix this by providing grants to study and gain a certification in teaching. In addition, the program requires recipients to complete four years of teaching in a high-need field and in a school that serves low-income students within eight years of completing their coursework.

If a recipient does not complete the required teaching, their grant is converted into a Direct Unsubsidized Loan that must be repaid in full, including interest that would have accrued. A significant portion of recipients fall into this category. The Department of Education estimates 52% of students receiving a TEACH Grant in Fiscal Year 2025 will fail to complete their service obligation and see their grants converted to loans. Additionally, 63% of recipients who started their eight-year service period prior to July 2014 saw their grants converted to loans.

The TEACH Improvement Act would improve the TEACH Grant Program by:

• Increasing the total lifetime cap of the loans by $2,000 to:
• • $18,000 for undergraduates/post-baccalaureate ($4,000 annually in the first two years, and $5,000 annually in the last two years).
  • $10,000 for graduate level ($5,000 annually).
• Strengthening accountability measures for institutions by establishing performance thresholds tied to loan conversion rates:
• • If 50% of grants are converted to loans, institutions lose eligibility to offer TEACH Grants for a 3-year period.
  • If 40% of grants are converted to loans, institutions face restrictions and additional requirements. This includes additional financial aid counseling as well as establishing an improvement plan and task force.
  • The legislation also provides a pathway for institutions to regain eligibility based on performance improvements.
• Enacting improved protections for grant recipients:
• • If a recipients' service obligations are partially unmet, the bill allows for pro-rated loan conversion, rather than full conversion.
  • It also creates a formal reconsideration process for wrongful or erroneous loan conversions.
• Allowing flexibility while maintaining clear service requirements:
• • The legislation expands and clarifies eligible high need subject areas, including in STEM, special education and bilingual education.
  • It also maintains the service obligation of four years of teaching within eight years of completing the course of study where the applicant received a TEACH grant.
• Requiring strong oversight and reporting through regular reports to Congress:
• • The reports would include information on grant usage, loan conversion rates, program outcomes and demographics, as well as recommendations on best practices for minimizing conversion into loans.

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