U.S. Departments of Education, Labor Jointly Announce Grant Opportunities for Literacy and Teacher and School Leaders

On April 8, 2026, the U.S. Department of Education and U.S. Department of Labor jointly announced the availability of the following two Federal Fiscal Year 2026 grant opportunities. The U.S. Department of Labor is soliciting applications on behalf of the U.S Department of Education, per the interagency agreement between the two agencies announced in November 2025.

Innovative Approaches to Literacy (IAL):

The $16.8 million IAL grant program supports high-quality programs designed to develop and improve literacy skills for children and students from birth through 12th grade in high-need LEAs. This includes programs that (1) develop and enhance effective school library programs, which may include providing professional development for school librarians, books, and up-to-date materials to high-need schools; (2) provide early literacy services, including pediatric literacy programs through which, during well-child visits, medical providers trained in research-based methods of early language and literacy promotion provide developmentally appropriate books and recommendations to parents to encourage them to read aloud to their children starting in infancy; and (3) provide high-quality books on a regular basis to children and adolescents from low-income communities to increase reading motivation, performance, and frequency. 

Among other eligible applicants, LEAs in which at least 20 percent of students are from families with an income below the poverty line may apply.  The Department of Labor anticipates making 25-35 awards, ranging from $375,000 to $750,000 each with an average award size of $500,000. Applications are due June 9, 2026.

For additional information, please visit the IAL notice on grants.gov.

Teacher and School Leader Incentive Fund (TSL):

The purpose of the $60 million TSL program is to assist States, LEAs, and nonprofit organizations to develop, implement, improve, or expand comprehensive performance-based compensation systems (PBCS) or human capital management systems (HCMS) for teachers, principals, or other school leaders – especially in high needs schools – who raise student growth and academic achievement, support workforce readiness, and close the achievement gap between high- and low-performing students. In addition, a portion of TSL funds may be used to study the effectiveness, fairness, quality, consistency, and reliability of PBCS or HCMS for educators.

Among other eligible applicants, LEAs or consortia of LEAs may apply. The Department of Labor anticipates making 20 awards ranging from $500,000 to $8.5 million each with an average award size of $4.3 million. Applications are due June 9, 2026.

For additional information, please visit the TSL notice on grants.gov.