; and (2) for each succeeding fiscal year, the amount appropriated under this subsection for the preceding fiscal year, increased by the annual adjustment percentage. (b) Special requirement For purposes of any grants awarded under subpart 1 of part B of title II of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6631 et seq. ) with funds made available under subsection (a), the Secretary shall deem the term performance-based compensation system to only mean a system of compensation for teachers, principals, or other school leaders that recognizes skills and knowledge in the manner described in section 2211(b)(4)(B)(ii) of such Act ( 20 U.S.C. 6631(b)(4)(B)(ii) ).