The TEACH Improvement Act of 2026 significantly amends the Higher Education Act of 1965 to enhance and reform the Teacher Education Assistance for College and Higher Education (TEACH) Grant program. It redefines eligible institutions, requiring them to provide high-quality teacher preparation, be financially responsible, and offer pedagogical coursework and support services. The bill also clarifies definitions for post-baccalaureate programs and teacher candidates. The legislation sets specific grant amounts: $4,000 for the first two years and $5,000 for the second two years for most applicants, with graduate students receiving $5,000 annually. Total grant limits are established at $18,000 for undergraduate or post-baccalaureate study and $10,000 for graduate study. Grants are reduced for part-time students and cannot exceed the cost of attendance. A key provision introduces institutional accountability based on the rate at which TEACH Grants are converted to loans due to unfulfilled service obligations. Institutions with 50 percent or more conversions over three years will be ineligible to offer new TEACH Grants for three years, followed by conditional re-eligibility. Those with 40 percent or more conversions face restrictions, including not offering grants to first-year students, requiring student teaching experience, providing additional financial aid counseling, and establishing a task force to improve conversion rates. Recipients must agree to serve as full-time teachers for at least four academic years within eight years of completing their studies, teaching in high-need fields or schools. The bill specifies eligible high-need fields such as mathematics , science , special education , and foreign language . It also requires a plain-language disclosure form detailing the service obligation and loan repayment consequences. The Act establishes a comprehensive reconsideration process for grants converted to loans, particularly for issues like late certification, administrative errors, or changes in eligible fields. If successful, this process leads to loan discharge, reimbursement of payments, removal of negative credit reporting, and reinstatement of the TEACH Grant with an extended service obligation window. The Secretary is also directed to establish categories for extenuating circumstances that may excuse a recipient from fulfilling their service obligation. Additional administrative provisions include annual communication with recipients about employment certification, maintaining public lists of qualifying schools and high-need fields, and providing alternatives for certification if schools are uncooperative. Finally, the bill mandates regulations to ensure servicer accountability , holding third-party servicers responsible for contractual obligations and any loss of benefits to TEACH Grant recipients due to their failures. The amendments take effect on July 1, 2026, and require the Secretary to submit regular reports on the program's effectiveness and loan conversion rates.