S. 2481 — Pay Teachers Act

This section establishes definitions relating to teacher salaries in ESEA Title I-A (i.e., standards, assessments, and accountability provisions), including (1) annual base salary, excluding additional compensation, bonuses, stipends, or awards; (2) minimum salary for teachers, a state-determined annual base salary that local educational agencies must pay full-time teachers, with first-year teachers paid at least $60,000 in FY2026 through FY2030 and, for FY2031-2035 and subsequent five-year periods, an inflation-adjusted amount equal to the prior period's amount increased by the greater of the aggregate annual adjustment percentage (i.e., estimated CPI change) or 2%; and (3) teacher, generally a certified full-time public school teacher (including qualified special education teachers).

This section requires a state receiving assistance under Title I-A of the Elementary and Secondary Education Act of 1965 (ESEA) to submit a State Teacher Pay Plan Addendum to the Secretary not later than one year after the Secretary issues final rules implementing the Pay Teachers Act. The addendum must include (1) a description of the state's plan to provide competitive salaries for public school teachers throughout their careers, including an assurance of compliance with specified timelines in subsection (i)(2)(A)-(B) or a request for an extended timeline under the Teacher Salary Improvement pathway if eligible under subsection (i)(3); (2) a description of the state's plan to increase per-pupil expenditures or aggregate expenditures on free public education to support salary increases for teachers, paraprofessionals, specialized instructional support personnel, classified employees, principals, other school leaders, librarians, bus drivers, and other staff, without increasing class sizes or student-teacher ratios, reducing planning time, or requiring teachers to teach additional classes; (3) identification of average teacher salary baselines for the most recent fiscal year, statewide and for each local educational agency (LEA); (4) the number and percentage of teachers in LEAs earning less than $60,000 annually, disaggregated by service periods in subsection (i)(3)(A)(i), statewide and per LEA; and (5) a description of the state's plan to comply with ESEA requirements for equitable teacher distribution.

This section redesignates subsections (i) through (l) of Section 1111 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311) as subsections (k) through (n), respectively, and inserts a new subsection (i) requiring states receiving Title I-A grants (i.e., formula aid to support effective instruction for disadvantaged students) to ensure that full-time teachers employed by local educational agencies receive (1) a minimum annual base salary as determined by the state, via a statewide salary schedule increasing with experience, a first-year minimum, or a salary increase law; and (2) livable and competitive salaries that are at least the minimum, increase throughout a teacher's career, and are commensurate with regional salaries for college-educated professionals, per Secretary-established procedures. The requirements apply not later than 4 years after final regulations under section 5 of the Pay Teachers Act. States may request an extended timeline via the Teacher Salary Improvement pathway, available to eligible improvement states (i.e., those with average starting teacher salaries below $45,000 in FY2025, where 50% or more teachers earned below $60,000 in FY2025, and demonstrating substantial need due to exceptional circumstances); such states must submit a plan identifying average teacher salary baselines by years of service (0, 3, 5, 10, 15, 20, and 25 years), annual percentage increase goals starting within 2 years, and a 6-year timeline to full compliance, with public reporting. (Thus, noncompliant states risk losing Title I-A funding.)

This section establishes rules of construction in new subsection (j) of ESEA section 1111 (20 U.S.C. 6311) for requirements in subsection (i) (as amended by section 203). Specifically, (1) such requirements do not alter collective bargaining rights, remedies, or agreements under federal, state, or local law but do not exempt states, LEAs, or schools from compliance (including negotiation under state labor laws); (2) states and LEAs may supplement teacher or staff base salaries for additional skills or duties, through non-base supplemental pay systems, or via bonuses, stipends, or awards; and (3) subsection (i) is ineligible for waivers under ESEA section 8401.

This section adds §2251 to Subpart 4 of part B of title II of the Elementary and Secondary Education Act of 1965 (ESEA) to define terms for a new subpart on modernizing the teaching profession, including (1) incorporating the definitions of annual base salary and teacher from ESEA §1120(a); (2) defining career ladder as a staffing system that provides teachers, principals, other school leaders, paraprofessionals, and education support staff with opportunities for additional responsibilities, adjusted roles, salary increases, distributed leadership, shared accountability, collaborative professional learning, role differentiation based on skills and interests, and advancement based on impact on teaching and learning, with levels and associated salary increases specified in a state's plan under §2253; and (3) defining subgroup of students as each subgroup described in ESEA §1111(h)(1)(C)(ii).

This section establishes a competitive grant program to support states in developing and operating State commissions to recommend policies and resource uses (federal, state, local, in-kind, donations, philanthropic grants, and resource inequity reviews under ESEA sec. 1111(d)) for modernizing the teaching profession, including raising standards, status, and salaries; attracting and retaining talent; ensuring student access to qualified teachers; and reforming state, LEA, and school policies. From amounts appropriated under subsection (g), the Secretary reserves (1) 1% to inform stakeholders about state recommendations; (2) 2% for technical assistance and administration; and (3) 3% for grants, contracts, or cooperative agreements to regional educational laboratories (i.e., 10 regional labs established under 20 U.S.C. 9564 to serve geographic regions based on LEAs and school-age children) or qualified nonprofits to assist grantee states with applied research, data analysis, reporting on high-performing international systems, and implementation. Grant recipients (e.g., SEAs, governors, designees, or consortia) must use at least 75% of funds for commissions with specified membership—at least half current or former teachers (diverse by experience, background, urban/suburban/rural); plus representatives (to extent practicable) from the governor, SEA/licensing agency, legislators, principals/superintendents, school boards, teacher unions/paraprofessionals/support staff, civil rights organizations, IHEs, in-demand industries, state labor agency, parents, and school finance experts—and may reserve up to 25% for technical assistance, administration, and public information.

This section establishes the Advancing the Teaching Profession Grants program (new ESEA §2253) to support state-implemented teacher career ladders—incentivizing experienced teachers with additional responsibilities, differentiated roles, and increased compensation—and to provide annual flexible classroom awards of at least $1,200 per eligible teacher in high-need public schools (i.e., those with high numbers or percentages of low-income students, including recent title I-A schools) or $1,000 per eligible teacher in other eligible public schools. From appropriated funds, the Secretary allots grants to approved states (50 states, DC, and Puerto Rico) as follows: (1) for the first award year (July 1-June 30), $1,000 multiplied by the number of eligible teachers (full-time equivalents in eligible public schools); and (2) for subsequent award years, the sum of estimated career ladder award amounts (per level: estimated teachers at that level multiplied by the state's minimum salary increase for the level) plus classroom award amounts ($1,200 multiplied by estimated high-need eligible teachers plus $1,000 multiplied by other estimated eligible teachers). States must provide a 25% non-Federal match.

This section establishes the Pay Paraprofessionals and Education Support Staff Act (new ESEA sec. 2254) to provide grants enabling local educational agencies to pay paraprofessionals and education support staff (i.e., aides and other noncertified personnel who assist teachers and support school operations, often in high-need schools) state-determined minimum annual salaries for full-time staff of $45,000 for FY2026 through 2030 (indexed thereafter every five years to the greater of the aggregate annual adjustment percentage or 2%) or minimum hourly wages for part-time staff of $30.00 for FY2026 through 2030 (similarly indexed). It appropriates $25 billion for FY2026, increased each succeeding year by the annual adjustment percentage, with the Secretary reserving up to 1% for grants to regional educational laboratories or nonprofits for research on staff professional development (e.g., special education or English learner support) and 1% for technical assistance and administration; remaining funds are allotted to applying states proportional to their prior-year allocations under ESEA Title I-A. States must submit applications including a timeline consistent with required goals.

This section adds §2255 to Subpart 5 (Modernizing the Teaching Profession) of title II-B of the ESEA, establishing rules of construction and requirements for grant and pay programs under §§2253 and 2254 as follows: (1) preserves employee rights, remedies, and procedures under federal, state, or local laws and collective bargaining agreements, while requiring compliance with salary or wage requirements therein and state labor laws; (2) permits states and LEAs to supplement annual base salaries for additional skills, duties, or responsibilities, or through supplemental pay systems, bonuses, stipends, or awards; (3) prohibits application of ESEA waiver authority under §8401; and (4) requires federal funds to supplement, not supplant, state and local funds for elementary and secondary education, with the Secretary using funds under §2254(d)(1)(B) for program administration, technical assistance to states, and monitoring and enforcement. This section also updates the ESEA table of contents to reflect the new subpart and §2255.

This section requires states to include additional information in the annual report to the Secretary under ESEA §1111(h)(5) by inserting new subparagraphs (D) and (E) (and making conforming amendments). The new requirements are (1) data demonstrating the state met the accountability requirements of §1111(i)(1)(A) and (B), or an assurance that the state submitted the annual report described in §1111(i)(3)(F); and (2) a description of evidence-based strategies implemented to reduce the number and percentage of teachers and paraprofessionals teaching without full certification and licensure—overall and in schools served by districts with high numbers or percentages of low-income students, racial or ethnic minorities, children with disabilities, or English learners—and to meet the equitable teacher distribution requirements of §1111(g)(1)(B).

This section revises state and local educational agency plans under Title I-A of the Elementary and Secondary Education Act of 1965 (ESEA) to expand equitable teacher distribution requirements beyond low-income and minority students to also include children with disabilities and English learners; defines inexperienced teachers as those with less than 2 years of service; requires evidence-based strategies to reduce out-of-field, uncertified, or unlicensed teachers and paraprofessionals, particularly in high-need schools; and adds reporting on teachers providing language instruction educational services to English learners who are inexperienced, out-of-field, or ineffective. It further requires disaggregation of such data by student subgroup and school type. This section also establishes a new ESEA technical assistance program (to be codified at 20 U.S.C. 7909D) to support states and local educational agencies in achieving teacher equity, including grants for educator quality data systems and biennial reports to Congress on progress, with mandatory appropriations of $3 million for FY2026 and each succeeding fiscal year (adjusted annually by the Consumer Price Index). (As background, Title I-A provides formula grants to states and local educational agencies to support improved academic achievement for disadvantaged students, including requirements for equitable distribution of effective teachers.)

This section amends state plan requirements under Section 1111(d) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(d))—which requires states receiving Title I-A grants to identify low-performing schools serving disadvantaged students and develop support plans—to strengthen measures addressing resource inequities, as follows: (1) requires state plans to propose plans that shall mitigate resource inequities and increase educational opportunities, including equitable access to qualified teachers, for students in identified schools (revising prior optional language); (2) requires comprehensive support and improvement plans for lowest-performing schools to identify and propose mitigation of resource inequities, including teacher access and a review of local educational agency and school-level budgeting, and changes the relevant Secretarial review from "may" to "shall"; and (3) requires states periodically to review resource allocation to ensure equitable access to qualified teachers. This section further adds a new subsection (l) requiring states receiving Title I-A grants, not less frequently than every five years, to examine fiscal inequities by identifying (1) the quartile of schools serving the greatest number and percentage of low-income students and (2) the average per-pupil expenditures of the quartile of local educational agencies with the greatest such expenditures, and to implement state and local actions—in consultation with the Governor, State legislature, State board of education, affected agencies, and the public—to increase per-pupil expenditures at high-need schools to not less than that average.

This section requires states to include in their report cards, for the preceding fiscal year, per-pupil expenditures of Federal, State, and local funds—including actual personnel and nonpersonnel expenditures disaggregated by source—for each local educational agency and school in the state. It further requires schools served by a local educational agency receiving Title I-A funds to provide each parent with per-pupil expenditure information for the school and agency (per state report card standards) and whether those amounts are below the respective local educational agency and state averages.

This section revises state administration funding reservations under the Elementary and Secondary Education Act of 1965 (ESEA) as follows: (1) increases the minimum amount each state may reserve for administrative duties under ESEA title I parts A (grants to local educational agencies), C (migrant education), and D (neglected and delinquent) from the greater of 1% of allocations or $400,000 to the greater of 1% or $1,200,000 ($50,000 for outlying areas); and (2) requires each state receiving title I-A funds to reserve not more than 0.5% of such funds, in addition to amounts under (1), to monitor implementation of ESEA section 1111(i); support state public school funding commissions or finance system reviews with specified stakeholder engagement to identify and address fiscal and resource adequacy/equity gaps among and within local educational agencies; provide related technical assistance; and expand public transparency on school finance systems. (Thus, states gain additional administrative flexibility while dedicating title I-A funds specifically to school funding equity efforts.)

This section directs the Secretary of Education, not later than 240 days after enactment, to enter into an agreement with the National Academies of Sciences, Engineering, and Medicine to conduct a study on improving federal requirements under Title I-A of the Elementary and Secondary Education Act of 1965 (i.e., aid to local educational agencies for disadvantaged students) to ensure equitable State and local funding for schools serving high numbers or percentages of underserved students, including low-income students, students of color, English learners, children with disabilities, homeless students, and foster care youth. The study must (1) examine disparities in per-pupil expenditures and full-time equivalent staff between Title I-A schools and non-Title I-A schools; (2) identify options to improve comparability requirements; (3) identify options to improve supplement-not-supplant requirements; and (4) recommend federal and state policies for equitable fund distribution. Not later than three years after the agreement, the National Academies must submit the report to the Secretary and relevant congressional committees and make it publicly available. The section provides a mandatory appropriation of $1.5 million for FY2026.