The Texas Education Agency (TEA) has announced updates to its Teacher Incentive Allotment (TIA) program, aiming to expand opportunities for performance-based teacher raises and create a standardized statewide evaluation system.
The TIA program, initially established through House Bill 3 during the 86th Legislative Session, was designed to help school districts recruit promising new teachers, retain high-performing educators, and encourage teachers to work in high-needs or hard-to-staff schools. Funding for the program was later expanded under House Bill 2 in the 89th Legislative Session.
Under the newly updated TIA system, teachers will be evaluated using a two-part process that combines classroom observation data with student growth metrics. Previously, school districts could determine their own weighting for these factors, but the new rules standardize scoring across the state.
Four Performance Categories Introduced
The updated program also introduces a fourth performance category. Previously, teachers were ranked as Recognized, Exemplary, or Master. The new “Acknowledged” category is for teachers who score at least 70 percent on classroom observations and demonstrate that at least half of their students meet growth targets.
Statewide rankings now break down as follows:
Acknowledged: Bottom 50 percent
Recognized: Top 33 percent
Exemplary: Top 20 percent
Master: Top 5 percent
Beginning in the 2026–2027 school year, National Board Certified (NBC) teachers will receive their own designation for performance-based raises. The State Board of Education is required to review the NBC certification process by December 31, 2026, to ensure it aligns with state law. If it does not, NBC teachers could lose automatic eligibility for TIA raises.
Funding and Local Flexibility
TIA funding is distributed to districts with qualifying teachers, which must develop a “local spending plan” for how the money is used. At least 90 percent of the allotment must benefit teacher compensation at the campus where the designated teacher works, although the TEA clarified that the money does not necessarily have to go directly to the teacher. “The percentage of allotment funds awarded directly to the designated teacher is a local decision and will vary by district,” the TEA said on its website.
Funding levels for next school year will increase, with allotments ranging as follows:
Acknowledged & NBC teachers: $3,000–$9,000
Recognized: $5,000–$15,000
Exemplary: $9,000–$25,000
Master: $12,000–$36,000
Teachers at high-needs and rural campuses will also receive additional funding through an increased multiplier under the updated system.
Houston Controversy Highlights TIA Debate
The TIA program has recently drawn attention in Houston, where the Houston Independent School District (HISD) used the performance-based system to distribute HB 2 teacher raises funded through the Teacher Retention Allotment. In response, the Houston Federation of Teachers filed a lawsuit against Superintendent Mike Miles and the state-appointed board of managers, arguing that HISD teachers should receive experience-based raises like their peers in other Texas school districts.
