Teacher Incentive Fund, Recovery Act

To support projects that develop and implement performance-based teacher and principal compensation systems in high-need schools that must include gains in student academic achievement as well as classroom evaluations conducted multiple times during each school year, among other factors.

The compensation
systems may also provide educators with incentives to take on additional responsibilities and leadership roles.
Related Programs

Examples of Funded Projects

Fiscal Year 2008: Among the grants awarded in 2006 were the following: $34 million over 5 years to the South Carolina Department of Education, which has been working with the Teacher Advancement Program (TAP) to implement a performance-based compensation system to address problems with recruitment and retention in 23 high-need schools in 6 districts.

The project has the potential to affect more than 60,000 children and 5,000 teachers and principals.

Strategies include higher and varied teacher bonuses, the introduction of principal and assistant principal bonuses, raising the value-added percentage in performance pay from 50 percent to 60 percent, and using tests to give K-3 teachers an individual value-added score.

$6.8 million to the Eagle County (CO) School District, which, in the 5 years before receiving the grant, had already invested over $4.5 million (not including performance awards) to implement a performance-based compensation system for teachers and principals.

The TIF grant is allowing the district to expand the program and improve the quality of Master and Mentor teachers through increased salary augmentations and training.

The project affects 13 high-need schools.

$1.1 million over 5 years to the Edward W.

Brooke Charter School, a charter school for students in kindergarten through grade 8 in Boston, Massachusetts.

The school is using its grant to offer teachers and principals annual bonuses tied to student performance during the previous academic school year.

The compensation plan also offers differentiated base salaries for teachers who have proven expertise in high-need subject areas, such as mathematics and science.

In addition, the school also will use TIF funds as a retention tool by awarding incentives only to teachers who commit to returning to the school for the following year.

Fiscal Year 2009: No information available.

Fiscal Year 2010: No information available.

Agency - Department of Education

The Department of Education ensures equal access to education and promotes educational excellence through coordination, management and accountability in Federal education programs. The Department works to supplement and complement educational efforts on all levels, encouraging increased involvement by the public, parents and students.

Program Accomplishments

Not Applicable.

Uses and Use Restrictions

Successful applicants must use these funds to carry out the activities described in their approved applications.

Grantees may use the funds to develop and implement performance-based compensation systems, including incentives to take on individual responsibilities and leadership roles.

Eligibility Requirements

Applicant Eligibility

Local (includes State-designated lndian Tribes, excludes institutions of higher education and hospitals: Elementary/Secondary Education.

Quasi-public nonprofit institution/organization: Elementary/Secondary Education

Beneficiary Eligibility

State; Local; Public nonprofit institution/organization; Other public institution/organization; Private nonprofit institution/organization; Quasi-public nonprofit organization; Education Professional; School; Education (0-8); Education (9-12); Education (13+)


No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.


Application Procedures

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Applicants must prepare and submit applications in accordance with the notice published in the Federal Register. By the due date, eligible applicants must submit to the U.S. Department of Education, Application Control Center, a complete application that addresses the purposes of the program, the selection criteria, and the competitive priority (if applicable) included in the application notice, and includes all required assurances and signatures. Required assurances and certifications include: Assurances for Non-Construction programs (SF 424B); Certifications regarding Lobbying, Disbarment; Suspension and other Responsibility Matter, and Drug-Free Workplace Requirements (ED Form 80-00013); Disclosure of Lobbying Activities (SF LLL) (if applicable); Response to Notice to All Applicants (Section 427, GEPA). Applications should also include a Cover Page (SF 424); the required Budget Form (ED Form 524); an itemized budget and other budget information; a project abstract; and a program narrative that includes responses to selection criteria. Applicants are encouraged to submit one original and two copies of the application.

Award Procedures

If an applicant is successful, the Department of Education notifies the applicant s U.S. Representative and U.S. Senators and will send the successful applicant a Grant Award Notification (GAN). The Department of Education may also notify the successful applicant informally.


Contact the headquarters or regional office, as appropriate for application deadlines.


Elementary and Secondary Education Act, Title V, Part D, Subpart I and the American Recovery and Reinvestment Act of 2009, Public Law 111-5.

Range of Approval/Disapproval Time

From 90 to 120 days. The range of approval/disapproval time is approximately 60 to 120 days following the application deadline.


Not Applicable.


Renewals are subject to the availability of appropriations.

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program. Each applicant must demonstrate a significant investment in, and ensure the sustainability of, its project by committing to pay for an increasing share of the project, for each year of the grant, with State, local, or other non-Federal funds. The applicant will annually increase its share of the project. In the final year of the grant, the grantee must ensure that at least 75 percent of the compensation costs are not paid by the grant. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

The application notice will specify the length of the project period[T4] Renewals are subject to the availability of funds and a grantee s satisfactory progress. See the following for information on how assistance is awarded/released: No Information Provided.

Post Assistance Requirements


No program reports are required.

No cash reports are required.

Annual performance reports must be submitted for each project year.

Final performance reports and the final evaluation report must be submitted after the end of the grant period.

Grantees under this competition should anticipate having to report, at a minimum[T6][N7], at the end of each quarter on the amount of grant funds obligated and expended; all activities for which those funds were obligated and expended; the completion status of those activities; the estimated number of jobs created or retained by the project and those activities; and detailed information on any contracts awarded with grant funds.

No expenditure reports are required.

No performance monitoring is required.


In accordance with the provisions of OMB Circular No. A-133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that receive financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have


In accordance with the General Education Provisions Act and The Education Department General Administrative Regulations (EDGAR), certain records must be retained for three years.

Financial Information

Account Identification



(Salaries) FY 08 $0; FY 09 est $200,000,000; FY 10 est $0

Range and Average of Financial Assistance

Estimated range of awards: $239,000 to $10,366,000.

Regulations, Guidelines, and Literature

Education Department General Administrative Regulations (EDGAR), Parts 74, 75, 77, 79, 80, 81, 82, 84, 85, 97, 98, and 99. Contact program office for additional information.

Information Contacts

Regional or Local Office


Headquarters Office

April Lee Headquarters Office: Office of Elementary and Secondary Education, Department of Education, 400 Maryland Ave., S.W., , Washington 20202 Email: april.lee@ed.gov Phone: (202) 401-2266

Criteria for Selecting Proposals

The selection criteria will be included in the full application package and published in the Federal Register notice. Contact the program office for more information.

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