Texas launches major investment awarding over 481 million dollars in merit pay to high performing teachers
Austin, Texas – In a bold move to strengthen Texas classrooms and reward the state’s most effective educators, Governor Greg Abbott has announced that over $481 million in Teacher Incentive Allotment (TIA) funding will be distributed to more than 42,000 designated teachers for the 2024–25 school year.
“Teachers play a key role in the success of Texas students and our great state,” said Governor Abbott. “With this over $481 million in merit pay, Texas is awarding thousands of teachers from every corner of our state with the pay raise they deserve—putting them on a path to earning a six-figure salary. And soon, Texas will invest even more in teachers, providing permanent pay raises for experienced classroom teachers. With empowered parents, exemplary teachers, and exceptional academics, Texas is on a path to be No. 1 in educating our children.”
Since its launch in 2019, the TIA program has awarded more than $1 billion to high-performing teachers. This incentive-based initiative was crafted to ensure that Texas retains top teaching talent by offering them a direct path to higher earnings. According to the Texas Education Agency (TEA), teacher retention has significantly improved, especially in districts that have expanded their designation systems. Teachers recognized through the TIA program were retained at rates nine percentage points higher than those who were not designated.
Designations Tailored to Classroom Impact
The process for determining TIA designation is based on a mix of classroom evaluations and student academic growth metrics. Teachers who maintain their designation and continue teaching in classrooms help generate annual funding used directly for their compensation.
Districts implementing the TIA can begin by designating all teachers at once or may opt to phase in the system, focusing first on select departments such as fine arts, career and technical education, or special education. This flexibility has allowed schools to adapt the program to fit their unique structures while keeping the core focus on classroom effectiveness.
Historically, teachers could be awarded one of three designations: Recognized, Exemplary, or Master. However, a new designation band—Acknowledged—is being introduced under House Bill 2. This addition will expand eligibility, making it possible for more teachers to qualify for incentive funding. At the same time, the bill increases funding amounts tied to the Recognized, Exemplary, and Master levels.
With more money in the hands of educators and increased efforts to retain qualified teachers, the state is pushing forward with renewed focus on academic outcomes and teaching quality.
To view the full list of school districts participating in the program or to learn more about eligibility requirements, visit the Texas Teacher Incentive Allotment page online.
