Department of Education

TEACH Grants

Fiscal Year 2025 Budget Proposal

CONTENTS

Page

TEACH Grants

Program Description...............................................................................................................1

FY 2025 Budget Proposal.......................................................................................................2

Program Output Measures......................................................................................................3

Program Performance Information..........................................................................................3
TEACH GRANTS

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TEACH GRANTS

(Higher Education Act of 1965, Title IV, Part A, Subpart 9)

(dollars in thousands)

FY 2025 Authorization: To be determined

Mandatory Budget Authority:1

2024 Annualized CR 2025 Request Change

TEACH new loan subsidies $38,920 $39,188 $268

TEACH net re-estimate 7,318 0 -7,318

TEACH net modification 0 0 0

TEACH Total net subsidy 46,238 39,188 -7,050

PROGRAM DESCRIPTION

The TEACH Grant program is intended to create incentives for postsecondary education 

students to teach in in-demand fields and high-need schools. The program awards annual 

grants of up to $4,000 to eligible undergraduate and graduate students who agree to serve as 

full-time teachers in mathematics, science, foreign language, bilingual education and English 

language acquisition, special education, reading, or other in-demand fields and areas at a highneed school, for not less than 4 years within 8 years of graduation. To be eligible for a TEACH 

Grant award, students must meet certain academic achievement requirements, scoring above 

the 75th percentile on one or more portions of a college admissions test or maintaining a 

cumulative grade point average of at least 3.25. In addition, teachers, retirees from another 

occupation with expertise in a field in which there is a shortage of teachers, or current or former 

teachers using a high-quality alternative route to certification are eligible to receive TEACH 

awards to obtain a graduate degree. 

TEACH Grant recipients are required to meet the service obligation described above and certain

reporting requirements. For students who fail to fulfill these requirements, grants are converted 

to Direct Unsubsidized Stafford Loans with interest accrued from the date the grants were 

awarded. All applicants must sign a TEACH Grant Agreement to Serve acknowledging that 

grants will be converted to loans if the required service obligation is not completed. For all grant 

recipients, loan conversion will occur only if the recipient asks the Secretary to convert their

TEACH Grants to loans, or if the recipient fails to begin or maintain qualifying teaching service 

within a timeframe that would allow the recipient to satisfy the service obligation within the eightyear service obligation period. 

1 For budget and financial management purposes, this program is operated as a loan program under the Federal 

Credit Reform Act of 1990; budget authority reflects the estimated net present value of future Federal nonadministrative costs for awards made in a given fiscal year.
TEACH GRANTS

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Participating institutions of higher education must provide high quality teacher preparation and 

professional development services, including extensive clinical experience as part of preservice

preparation; be financially sound; provide pedagogical coursework, or assistance in the 

provision of such coursework, including the monitoring of student performance, and formal 

instruction related to the theory and practice of teaching; and provide supervision and support 

services to teachers, or assistance in the provision of such services, including mentoring 

focused on effective teaching skills and strategies.

Total net subsidy costs for the past 5 fiscal years were:1

Fiscal Year (dollars in thousands) 

2020 $19,399

2021 149,211

2022 170,480

2023 56,083

2024 46,238

FY 2025 BUDGET PROPOSAL

The estimated loan subsidy amount for fiscal year 2025 is $39.2 million. Aid available in fiscal 

year 2025 is anticipated to reach approximately $72.6 million. By the end of academic year 

2022–2023, the TEACH Grant program was making awards at approximately 716 institutions. 

The fiscal year 2024 net upward reestimate of $7.3 million is due to technical assumption

updates, including death, disability, and bankruptcy. As part of the 2025 request, the 

Administration intends to work with Congress to ensure access to student financial aid for 

Dreamers. 

In 2020, the Department published updated program regulations to codify many of the 

operational changes that allowed for a reconsideration process if a TEACH grant was 

erroneously converted to a loan. The regulations expand the fields in which grant recipients can 

work to fulfill their service obligation, simplify the employment certification requirements, require 

more information to be provided to recipients as part of entrance and exit counseling, create 

conversion counseling to education borrowers when their grants convert to loans, and provide 

processes to correct improper conversions of TEACH grants to loans. The Consider Teachers 

Act of 2021 (P.L. 117-49), signed October 13, 2021, incorporated many of the changes made in 

the final regulations and allowed grant recipients to fulfill their service obligation by working in a 

high need geographic area. 

Consistent with the requirements of the Credit Reform Act of 1990, budget authority for this 

program reflects the estimated net present value of all future non-administrative Federal costs 

associated with awards made in a given fiscal year.

1 Subsidy costs include net reestimates (combined upward and downward) of prior cohorts and net modifications, 

which may produce significant annual fluctuations.
TEACH GRANTS

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PROGRAM OUTPUT MEASURES

Output Measures 2023 2024 2025

Recipients 23,433 23,716 24,003 

Aid available to students (dollars in

thousands) $70,892 $71,749 $72,618

Maximum award (in whole dollars) $4,000 $4,000 $4,000

PROGRAM PERFORMANCE INFORMATION

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data. Achievement of program 

results is based on the cumulative effect of the resources provided in previous years, and those 

requested in fiscal year 2025 and future years, as well as the resources and efforts invested by 

those served by this program. Data on these measures is collected through the National 

Student Loan Data System (NSLDS). 

Performance Measures 

Goal: To ensure the TEACH Grant program helps recruit teachers.

Objective: Ensure that more TEACH Grant recipients are fulfilling their service obligation 

through qualified teaching service.

Measure: TEACH Grant recipients with one or more years of qualified teaching service after 6 

or more years following their last TEACH award. 

Additional Information: The percentage of TEACH Grant recipients with 1 or more years 

qualified teaching service after 6 or more years following their last TEACH award has increased

from under 30 percent before 2011 and surpassed 42 percent in 2016 and 2017. The rates 

observed for 2016 and 2017 are above targets established for this measure. The Department 

believes improvements in the certification process have made it easier for teachers to show 

participation and prevent unwarranted grant to loan conversions. Based on administrative 

program data, the Department projects that 52 percent of TEACH Grants awarded in fiscal year 

Fiscal Year

Target: Total Percentage with 

Teaching Service

Actual: Total Percentage with 

Teaching Service

2016 37.0% 42.8%

2017 39.0 42.4

2018 41.0 37.8

2019 43.0 —

2020 45.0 —

2021 47.0 —
TEACH GRANTS

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2025 will convert to loans. 2019 performance data is expected to be available in December 

2024 and will be included in the fiscal year 2026 Congressional Justification. 

Distribution of TEACH Grant Awards by Type of Institution

The table below shows the award year 2022–2023 distribution of TEACH Grant assistance by 

type of institution for awards, number of recipients, and average award.

Distribution of TEACH Grants by Type of Institution 2022–20231

Institution Type Awards Recipients Average 

Award

Percent of TEACH 

Grant Awards

Public 4-Year $32,252,645 11,228 $2,873 47.16%

Public 2-Year 0 0 0 0.00

Private 4-Year 25,160,767 8,617 2,920 36.79

Proprietary 4-Year 10,973,201 3,375 3,251 16.05

TOTAL 68,386,613 23,220 2,945 100.00

1 Percentage may not total to 100 percent due to rounding.