# DIPLOMA Act Summary
The DIPLOMA Act (Developing Innovative Partnerships and Learning Opportunities that Motivate Achievement Act) authorizes a new federal grant program to improve student outcomes by funding partnerships between schools and community organizations. The legislation recognizes that addressing students' comprehensive needs—including academics, health, mental health, and social services—requires coordinated efforts across multiple sectors.
The bill establishes two funding pathways. When appropriations exceed $200 million annually, the Department of Education allocates funds to states through a formula based on Title I poverty funding. States must develop comprehensive five-year strategies with measurable goals for student achievement, school readiness, graduation rates, and other outcomes. States then award subgrants to local consortiums (school districts partnered with community organizations, nonprofits, colleges, businesses, and other local entities) to implement coordinated services. When appropriations fall below $200 million, the department awards grants directly to local consortiums on a competitive basis.
Funds support a wide range of services including tutoring and academic support, early childhood programs, health and mental health services, youth development activities, family engagement programs, and summer learning opportunities. At least 90 percent of state allocations must go to local subgrants, with up to 5 percent each allowed for educator recruitment and retention activities and administrative costs. Rural areas receive priority consideration with at least 5 percent of subgrant funding reserved for them.
The legislation requires annual reporting on progress toward established goals and includes accountability measures, allowing the Department of Education to terminate funding if recipients fail to make adequate progress or misuse funds. The bill authorizes appropriations through fiscal year 2032 but does not specify a dollar amount.
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