This report provides an update on current grant projects funded through the Improving Teacher Quality State Grants Program. These include grants targeted to academic literacy in secondary education and to the retention of science and mathematics teachers. The Commission also received information on plans for the 2007 competition process, which will focus on teacher professional development in early elementary grades. The contents of this report are arranged as follows: (1) Overview; (2) Grants that Closed in 2006; (3) First Year of ITQ-02; (4) Launching of ITQ-03 Grants; (5) Plans for 2007 RFP; and (6) Other Program Activities.