PolicyBrief
H.R. 2021
119th CongressMar 10th 2025
American Teacher Act
IN COMMITTEE

The American Teacher Act establishes federal grants to incentivize states to set a minimum annual teacher salary of $60,000 and provide inflation adjustments for teacher pay.

Frederica Wilson
D

Frederica Wilson

Representative

FL-24

LEGISLATION

Proposed 'American Teacher Act' Sets $60,000 Minimum Salary for Public School Teachers Starting 2026

The American Teacher Act is a direct shot at the teacher shortage crisis, aiming to put a solid floor under educators’ paychecks. Starting in the 2026–2027 school year, this bill would mandate that every full-time public school teacher in a qualifying school earns an annual base salary of at least $60,000. After that initial year, that $60,000 minimum is protected, meaning it will automatically increase based on the Consumer Price Index for All Urban Consumers—the standard measure of inflation—so the raise keeps pace with the cost of living. This isn’t a one-time bonus; it’s a federal push to establish a professional wage floor for teaching.

The Federal Grant, The State Catch

To make this happen, the Secretary of Education will offer four-year grants to state education agencies. But here’s the smart, and potentially tricky, part: to get the money, states must submit a Sustainability Plan detailing exactly how they will continue paying that $60,000 minimum salary after the four years of federal grant money run out. This forces states to commit to long-term funding instead of relying on a temporary federal handout. Once the state gets the money, they must pass at least 85 percent of it down to local school districts, prioritizing those serving high-poverty or rural areas—the places that often struggle the most with teacher recruitment.

No More Second Jobs? The Real-World Impact

For a teacher currently earning $45,000 a year, this bill could mean an immediate and substantial pay bump, potentially eliminating the need to take on a second job driving for a ride-share service or working retail just to make ends meet. The bill is clear that this federal money must be additive; it can’t replace existing state or local funding for salaries. This is the crucial “anti-supplanting” rule (SEC. 3, paragraph 5), designed to ensure that the grant money goes directly to raising pay, not just freeing up state dollars to be spent elsewhere. If a state tries to cut its existing teacher budget because of this new federal cash, they’re out of compliance.

Protecting the Paycheck from Inflation

Beyond the initial minimum, there’s a second grant program tucked into Section 4 aimed at states that are already paying $60,000 or more. This is for states that meet the minimum but are struggling to keep up with inflation. If a state already hits the $60,000 mark but can’t afford to give cost-of-living adjustments (COLAs) that match the annual inflation rate, they can apply for a grant to cover the difference. This provision acknowledges the reality that a $60,000 salary today won't buy the same amount of groceries or cover the same rent five years from now, giving teachers a measure of financial stability.

The Long-Term Commitment Test

The biggest challenge in this bill falls squarely on state and local governments. While the four years of federal grants provide a generous runway, the requirement for a legally binding Sustainability Plan means states must figure out how to generate the necessary revenue to keep that $60,000 minimum going indefinitely. This is where the rubber meets the road: states will need to make serious, long-term budgetary decisions. If a state fails to plan effectively, teachers could see a significant salary increase followed by a sudden stagnation or even a drop if the state isn't ready to fully take over the funding when the federal grant expires. The bill also authorizes a national awareness campaign (SEC. 5) to attract more people, especially diverse candidates, into teaching, recognizing that better pay needs to be paired with a stronger recruitment pipeline.