To assist local educational agencies in providing financial incentives to attract teachers to teach in rural and high-poverty areas.

Amends the Elementary and Secondary Education Act of 1965 to authorize the Secretary of Education to make annually renewable grants to local educational agencies to assist them in recruiting and retaining teachers for high-need elementary or secondary schools that: (1) provide a free public education; (2) at least 75 percent of whose students receive a free or reduced-cost lunch in accordance with the Richard B. Russell National School Lunch Act; and (3) which have been assigned a school locale code of 7 or 8 (rural or high-poverty).

Requires the use of such grants to increase by $5000 the salary of each full-time teacher in such a school.