New Funding Model Is Creating Pathways to Six Figure Salaries for Even More Educators

Quality educators are among the most important in-school factors influencing student success, but research shows that Texas schools struggle to retain effective educators. That’s why the state of Texas rewards its best teachers with significant salary increases through the Teacher Incentive Allotment, or TIA.  

New research from Texas Tech finds that TIA-designated teachers are retained at higher rates and drive stronger student outcomes, underscoring why enhancing TIA is so promising. With updates to the TIA funding model, Texas is unlocking additional resources and establishing criteria that better support educators and, in turn, the students they serve.

This session, House Bill 2 (89R) strengthened the Teacher Incentive Allotment in significant ways. The legislation added a fourth designation tier, Acknowledged, making up to 50% of Texas teachers eligible for designation, and increased the base allotment amounts across all designation levels. Collaboratively, these changes represent a substantial statewide investment in educator compensation, increasing individual educator salaries by as much as $36,000 and creating a path to a six-figure salary.

In addition to expanding TIA statewide, HB2 also created an Enhanced TIA model designed to further strengthen impact that is already being implemented in Dallas County by Dallas ISD, Irving ISD and Uplift Education.

The Enhanced Teacher Incentive Allotment (TIA), passed by the 89th Texas Legislature and signed into law by Gov. Abbott, builds on the expanded TIA framework by increasing funding to school systems that not only offer performance-based bonuses to their most effective educators, but intentionally staff these top teachers in high-need schools and subject areas.

This updated legislation provides school systems with new tools to sustain teacher retention. Through Enhanced TIA, districts can strategically direct Teacher Retention Allotment (TRA) funds, new statewide funding provided by House Bill 2 (89R), to reward experienced educators, support performance, and drive long-term stability. Enhanced TIA’s performance-based approach supports intentional budgeting strategies that benefit students, teachers, and schools.

This funding model establishes greater transparency by requiring districts to incorporate TIA funds into salary schedules, ensuring these investments translate directly into increased pay for educators, regardless of tenure. It also introduces principal performance pay, helping to attract and retain strong school leaders by tying their compensation to student results.  

Beyond compensation, the policy emphasizes impact by requiring districts to strategically place their most effective teachers and school leaders where they can make the greatest difference, keeping the focus on improving student outcomes. With the support of Enhanced TIA, all teachers, regardless of grade level or subject, are eligible to participate, making the benefit accessible across the profession.

Enhanced TIA makes an estimated $900 million in additional funding for teacher pay raises available across the state. This monumental shift in education underscores that strategic investments in teachers are long-term investments in student success.

Enhanced TIA is not just about increasing pay. It is about building compensation systems that districts can maintain, educators can trust, and students can rely on year after year. When funding, flexibility and data are aligned, districts are better positioned to retain experienced teachers, strengthen instruction on high-need campuses, and create more stable learning environments. As districts like Dallas, Irving and Uplift begin implementation, Enhanced TIA can become a leading tool for improving outcomes, helping ensure that strong teaching remains at the center of student success.

If you are interested in seeing Enhanced TIA implemented in your school system, reach out to Chelsea Valdez, Managing Director of Educator Development, at chelsea.valdez@commitpartnership.org.