The plan will involve up to 40 schools, and will focus on raising the quality of teaching through sharing expertise with successful schools.
First Minister Carwyn Jones said: "If we’re to raise standards and performance in education in Wales across the board we need to boost attainment levels of schools which are underperforming and we know could do better. The significant funding we’ve announced today is going to make a huge difference to those schools chosen to take on Schools Challenge Cymru."
The winners of the 2026 Education Business Awards have been unveiled, shining a spotlight on the outstanding achievements and dedication of schools and academies across the UK.
Initial Teacher Training (ITT) providers are urging schools to prioritise mentor support and release time, as new survey findings reveal pressures across the sector.
The Welsh Government has announced over £1.6m in new funding to provide additional mental health and wellbeing support in schools over the next three years.