What’s Changing with Indiana’s Teacher Appreciation Grant (TAG)?
06/04/2025

Starting in the 2025–26 school year, Indiana’s Teacher Appreciation Grant (TAG) program will look very different.

Previously, most teachers rated effective or highly effective received a stipend. But under changes passed in the state budget (HEA 1001), the program is shifting to a more selective model. Instead of recognizing teachers meeting evaluation benchmarks, the new TAG program limits awards to no more than 20% of certified teachers in a district each year, based on a combination of student outcomes and additional performance criteria.

The Indiana Department of Education (IDOE) is currently developing the guidance and rubric that will determine how districts implement the program.

Who qualifies under the new TAG rules?

To be eligible for a TAG stipend under the new law, a teacher must:

• Have taught students in the same school or district for at least one school year prior to the award year
• Remain employed at the same school or district at the time the grant is distributed
• Be identified as having a “significant impact on student outcomes”, based on national, state or local assessment data

These stipends are no longer tied to annual evaluation ratings alone.

How will teachers be selected for each stipend level?

Under the new TAG system, a recipient teacher will be selected for one of three stipend levels, depending on the criteria the teacher meets. All levels require demonstrating strong performance based on student outcomes. Additional requirements apply as follows:

• Recognition ($3,500): Awarded to teachers who demonstrate high performance based on student outcomes.
• Exemplary ($5,000): Awarded to teachers who meet the above standard and one of the following:
  • Mentor or coach another teacher to improve student outcomes
  • Work in a high-need subject or geographic shortage area (as determined by IDOE)
• Exemplary Plus ($7,500): Awarded to teachers who meet all of the following:
  • Demonstrate high performance on student outcomes
  • Serve as a mentor or instructional leader
  • Work in a high-need or shortage area

Districts may also choose to add additional local criteria on top of the state’s requirements.

These designations, and how they are determined, will be guided by a statewide rubric developed by the IDOE. While that rubric has not yet been released, it is expected to influence how teachers are selected and how local evaluation systems may be adjusted to align with TAG.

Another key change is when teachers receive stipends. In the past, TAG stipends were typically distributed in early December. Under the new program, the state is required to send funds to districts by April 15, and districts have up to 60 business days to issue stipends, meaning most teachers will not receive a payment until late spring or early summer.

What about the old TAG program?

The previous TAG program, in place for nearly a decade, awarded stipends to most teachers rated effective or highly effective. Educators across the state supported the program because it recognized the collective efforts of teachers meeting high standards.

In most districts, TAG stipends ranged from $250 to $600 per teacher, depending on district size and the number of eligible educators.

By contrast, the new program offers larger stipends to a much smaller group of teachers, based on stricter criteria. Some educators have expressed concern that this new approach could disrupt collaboration necessary in teaching and learning and create an unhealthy dynamic among staff.

ISTA’s position

ISTA opposed the legislative changes to the TAG program. While we support meaningful recognition for great teaching, the new model raises concerns about fairness, the erosion of collaboration and the exclusion of many deserving educators.

As is the case with most state grant programs, the current law includes a sunset date of June 30, 2027. Unless the General Assembly renews it, the program will end after two years. In the meantime, ISTA will monitor implementation closely, advocate for improvements and ensure that educators’ experiences are heard and elevated.

UPDATE: SEPTEMBER 2025

The IDOE has released new guidance on the TAG program. Here’s what’s new:

• Districts and charter schools must notify IDOE by Oct. 3, 2025 if they plan to participate. If they opt out, no educators in that district will receive a stipend.
• Timeline clarified:
• Oct. 31 – IDOE shares district allocations.
• Jan. 30, 2026 – Districts submit names and evidence for selected teachers.
• Apr. 15, 2026 – IDOE distributes funds to districts.
• Within 60 business days – Districts must pay stipends to teachers.
• Assessments defined: IDOE says “student outcomes” may include national (AP, IB, Cambridge, NAEP), state (IREAD, ILEARN, Formative Grant-funded tests), and local assessments (common formative assessments tied to curriculum like NWEA and others).
• “Significant impact” defined: IDOE interprets this as more than one year of student growth in one year’s time (districts can set the specifics).
• Mentoring clarified: Only teachers in formal, district-supported mentoring programs will qualify for Exemplary and Exemplary Plus stipends. Informal support does not count.
• High-need areas clarified: Includes special education, English learners, STEM or any certified role left unfilled for 90+ days. Districts may also document a geographic shortage.

ISTA will continue to monitor how districts implement these requirements and provide locals with resources to ensure plans are as fair and inclusive as possible.