Research shows that teachers of color can benefit all students, particularly students of color, yet only one in five teachers are individuals of color, compared to more than half of K-12 public school students. Increasing the diversity of educators can not only benefit students, but recruiting, preparing, and retaining more teachers of color who are underrepresented in the current teacher workforce can also help to address educator shortages. These are two critical goals many States, districts, and schools across the country are working to address. This non-regulatory guidance highlights actions that State educational agencies (SEAs), local educational agencies (LEAs, hereafter districts), and institutions of higher education (IHEs) can take to increase educator diversity, as well as Federal funding opportunities available to support these actions. This guidance outlines how financial supports and incentives; strategic investments; positive and supportive learning and teaching conditions for candidates enrolled in educator preparation programs (EPPs) and in-service educators; and the collection, analysis, use, and publication of educator diversity data can develop and sustain a diverse educator workforce. This guidance includes research on how a diverse educator workforce can enhance student success in school and beyond, describes strategies for SEAs and districts to consider as they begin or build on ongoing efforts, and outlines Federal funding sources to support these efforts. In addition, this guidance addresses directives in Title III of Division H of the Consolidated Appropriations Act, 2023.