Over $3 million in federal funding for Perry teachers’ bonus pay in jeopardy after grant terminated

A student wearing a red shirt sits at a desk with an open book and worksheet on the top.
Teacher and School Leader grants were among those terminated in February as part of the U.S. Department of Education’s moves to cancel federal funding for programs that it says supported improper DEI initiatives. (Aleksandra Appleton / Chalkbeat)

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Grant funding that supported bonuses for effective teachers at MSD Perry Township schools, as well as literacy positions at the district, is at risk due to the Trump administration’s cuts to federal funding seen to support diversity, equity, and inclusion programs.

Perry was just one of 29 districts nationwide, and the only one in Indiana, to receive a Teacher and School Leader (TSL) grant from the U.S. Department of Education in 2023. Through the funding, the district hoped to retain effective teachers, address learning gaps, and narrow achievement gaps, according to its application.

But the TSL grants were among those terminated in February as part of the U.S. Department of Education’s moves to cancel federal funding for programs that it says supported improper DEI initiatives.

The district was due to receive a total of $6.4 million through the grant over three school years, starting with 2023-24. The district received the grant funding for the first year, but the grant for the second and third years, or around $3.5 million, is now in limbo.

The district has appealed the loss of the grant to the U.S. Department of Education but is still awaiting a decision, according to district spokesperson Elizabeth Choi.

In a press conference when they announced the grant in 2023, district leaders said they intended to use the bulk of the grant funding — more than $5 million — on performance bonuses for teachers rated as highly effective, or those who mentored and provided professional development to other educators.

The rest of the funding was supposed to fund two new literacy coach positions. One coach would help teachers work with older students, including Perry’s large population of older English learner and immigrant students, and another coach would analyze literacy data for all students. (The Trump administration gutted the federal Office of English Language Acquisition earlier this year.)

Representatives for the federal Education Department did not respond to a request for comment regarding what the department objected to about Perry’s plans for the grant.

The district’s application included a reference to “improving classroom instruction and building school cultures that support equity, inclusion, and student ownership of their own learning.” Department officials have previously said “objectionable material associated with DEI” has led to grants being canceled.

Still, the district believes its programs are in line with new federal and state goals outlined by the Trump administration and Gov. Mike Braun that prioritize “merit.”

“The funding … allows the district to create performance incentives as well as retain top talent,” Choi said in a statement to Chalkbeat last week. “We believe this grant promotes merit in Perry Township Schools rather than fund illegal programs.”

No positions have been eliminated at this point due to the loss of the grant, Choi said.

Aleksandra Appleton covers Indiana education policy and writes about K-12 schools across the state. Contact her at aappleton@chalkbeat.org.

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