(1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026 only an amount not to exceed $70,000,000.00 to districts, intermediate districts, and consortia of intermediate districts for grow your own programs and educator development programs as described in this section and subject to subsection (5).

    (2) The department shall establish a competitive grant process to distribute funds under this section. A district, intermediate district, or consortium of intermediate districts must apply for funds in a form and manner prescribed by the department. As part of the application described in this subsection, a district, intermediate district, or consortium of intermediate districts must submit the following information and assurances:

    (a) Demonstrated need for funding in the district, intermediate district, or consortium of intermediate districts or the broader community, including projected workforce needs, and a proposed spending plan on how the funds will be utilized that includes, but is not limited to, expected tuition, fees, and books for the program.

    (b) Number of support staff projected to participate in a program described in this section.

    (c) The planned activities for programs described in this section.

    (d) Projected outcomes of programs described in this section, which must include, but are not limited to, the following:

    (i) Teacher and school leader retention and satisfaction.

    (ii) Teacher and school leader efficacy.

    (iii) Anticipated school or district partners, evidenced by signed partnership agreements.

    (e) Assurances that the programs described in this section will be no cost for participants and that participants will be compensated as an employee for the duration of their training, including a paid residency, fellowship, or student teaching.

    (3) Recipients of grants under this section must submit performance reports to the department not less than twice per year. Each report must include the following information:

    (i) The number of program participants served and retention in the program or district.

    (ii) Qualitative and quantitative participant feedback.

    (iii) Evidence of efficacy and progress toward projected outcomes.

    (4) The department shall ensure that all performance reports required under subsection (3) are made publicly available on the department’s website.

    (5) Grant awards under this section must be structured into 3 tiers, as described in subsections (6), (8), and (11). All programs funded under this section must address a measurable and critical problem related to the health and efficacy of this state's education talent working in Michigan schools and be data- and research-driven, demonstrating effectiveness against intended and measurable outcomes.

    (6) Funding for tier 1 grant awards must not exceed $50,000,000.00, unless otherwise directed by the legislature. The department shall allocate at least 1 tier 1 grant of not less than $40,000,000.00. Tier 1 grants must sustain or further scale grow your own programs or educator development programs that meet all of the following criteria:

    (a) Have been in operation in this state for at least 5 years, and evaluated for at least 2 years by a rigorous, independent Michigan-based evaluator, and results of the program have been made publicly available.

    (b) Have at least 2 consecutive years of public financial audits of the program with no material findings.

    (c) Demonstrate broad geographic reach and investment into teachers and school leaders at every experience level, in partnerships established with not fewer than 15 local education agencies across both urban and rural regions, that extend back to the start of the 2023-2024 school year, bound by written agreements that include data sharing with an independent evaluator for evaluation purposes.

    (d) Generate private matching funds.

    (7) Notwithstanding section 18a, funds allocated for programs described in subsection (6) may be available for expenditure until September 30, 2029. A recipient of funding for a program described in subsection (6) must return any unexpended funds to the department in a manner prescribed by the department by not later than October 30, 2029.

    (8) Tier 2 grants must scale or sustain grow your own programs or educator development programs that meet all of the following criteria:

    (a) Have been in operation for at least 3 years.

    (b) Demonstrate promising internal results, but are not yet supported by an independent evaluation.

    (c) Serve a geographically diverse population, including both urban and rural areas.

    (d) Have a demonstrated track record of receiving private philanthropic or corporate funding.

    (9) Grant awards for programs described in subsection (8) must not exceed $12,500,000.00 per year.

    (10) Notwithstanding section 18a, funds allocated for programs described in subsection (8) may be available for expenditure until September 30, 2027. A recipient of funding for a program described in subsection (8) must return any unexpended funds to the department in a manner prescribed by the department by not later than October 30, 2027.

    (11) Tier 3 grants must fund pilot-stage or early-stage grow your own programs or educator development programs that meet all of the following criteria:

    (a) Have been in operation for fewer than 2 years.

    (b) Do not yet have independent evaluation data available.

    (c) Are limited in scope or geography.

    (d) Include a documented path to scale or expand the program to serve more educators or additional districts.

    (12) Grant awards for programs described in subsection (11) must not exceed $5,000,000.00 per year.

    (13) Notwithstanding section 18a, funds allocated for programs described in subsection (11) may be available for expenditure until September 30, 2027. A recipient of funding for a program described in subsection (11) must return any unexpended funds to the department in a manner prescribed by the department by not later than October 30, 2027.

    (14) An individual may not concurrently receive funding for programs under this section and programs funded under sections 27a and 27c.

    (15) Notwithstanding section 17b, the department shall make payments under this section by not later than December 15, 2025.