HB 2: Teacher Retention Allotment and Support Staff Retention Allotment

During the 2025 regular session, the Texas Legislature passed House Bill (HB) 2, a comprehensive school finance and reform bill that also addresses compensation. HB 2 provides for educator pay raises through Texas Education Code (TEC) § 48.158, the Teacher Retention Allotment (TRA), and TEC § 48.1581, the Support Staff Retention Allotment (SSRA). The goal of these allotments is to recognize, support, and retain educators who instruct and support our Texas students. These changes reflect the state’s growing efforts to address teacher shortages, improve compensation equity, and retain qualified staff in both instructional and support roles across Texas school systems.

Teacher Retention Allotment

Texas Education Code § 48.158 creates the Teacher Retention Allotment (TRA). It is available to classroom teachers at rates depending on a teacher’s employment with a small or large school system and overall years of teaching experience. The law states that a school system is entitled to an annual allotment for each classroom teacher who is employed by, or contracts with, the system as follows:

• If a school system has 5,000 or fewer students enrolled for the school year, the system receives:
  • $4,000 for a classroom teacher who has at least three but fewer than five years of teaching experience.
  • $8,000 for a classroom teacher who has five or more years of teaching experience.
• If a school system has more than 5,000 students enrolled for the school year, the system receives:
  • $2,500 for each classroom teacher who has at least three but fewer than five years of teaching experience; and
  • $5,000 for each classroom teacher who has five or more years of teaching experience.

Classroom teachers are eligible for the introductory pay increase ($4,000 or $2,500) after they complete their third year of experience as a classroom teacher. They will receive the funds as they enter their fourth year of teaching experience. The increased pay raise amount ($8,000 or $5,000) applies after classroom teachers have completed their fifth year as a classroom teacher and enter their sixth year of teaching experience.

The TRA is permanent, meaning the allotment is provided to school systems each year so the funds become a part of a teacher’s base pay in a school system’s salary schedule. For example, in 2025-26, a teacher should receive the pay raise amount in addition to what they earned or would have earned in their current school system during the 2024-25 school year. For the 2026-27 school year and beyond, they should receive the eligible pay amount as part of their salary, but increases for a specific year or step may be less than the total TRA amount.

Who Is Eligible for the TRA?

Educators are eligible for the TRA if they meet the definition of a classroom teacher as noted in TEC §§ 48.158(a) (1) and (2). The TRA relies on the standard definition of a classroom teacher as noted in TEC § 5.001(2):

“’Classroom teacher’ means an educator who is employed by a school district and who, not less than an average of four hours each day, teaches in an academic instructional setting or a career and technology instructional setting. The term does not include a teacher’s aide or a full-time administrator.”

The TRA also expands on this definition by noting that “classroom teacher” also includes:

• An uncertified individual who is performing the work of a classroom teacher as defined by TEC § 5.001(2); and
• A person, certified or uncertified, who otherwise meets the definition of a classroom teacher and is employed by an entity with which a school district has entered a contract with, such as a charter management organization and shared service arrangement.

The Texas Education Agency (TEA) has provided guidance noting that “classroom teacher” is not limited to teachers of record. It adds that the definition includes “any individual who meets the instructional requirement noted” in the TRA statute. An educator’s entitlement to TRA funds is not based on a job title or contract or how the educator may have previously been paid (any previous PEIMS coding). Instead, a school system should look at whether an educator teaches in an academic instructional setting or a career and technology setting for at least four hours per day, whether they are certified or uncertified and engaged in this instruction work, or if they are performing this work through a contract with another entity.

Additionally, TEA has clarified that instructional planning time (such as a planning conference or passing period) counts toward the four hours of daily instruction for classroom teacher qualification.

One important exception to consider regarding classroom teacher eligibility is for those working for school systems that have been approved by TEA for the “Enhanced Teacher Incentive Allotment” designation. These school systems do not have to pay the TRA increase. They may instead distribute TRA funds based on performance rather than years of experience.

Can the TRA Change Due to More or Fewer Days Worked?

Classroom teachers are only eligible to receive up to the noted allotments—$4,000 or $8,000 for smaller school systems, or $2,500 or $5,000 for larger school systems. They may not earn more through the TRA for additional days worked beyond 187 workdays.

However, school systems may prorate TRA funds and pay less for late starts or early resignations based on the percentage of time worked by a classroom teacher for the school year. For example, TEA has noted that a teacher who leaves during the contract year would not receive any additional TRA payments upon departure from the school system.

What About Classroom Teachers in Federally Funded Positions?

Texas classroom teachers in federally funded positions must receive the TRA because it is a state-mandated requirement that school systems provide this pay to those who are eligible. These individuals would then receive the rest of their salary through federal funding. Per TEA FAQ documentation, a situation like this one would not require additional time or effort.

Support Staff Retention Allotment

Texas Education Code § 48.1581 creates the Support Staff Retention Allotment for “non-administrative staff.” This funding provides an allotment of $45 for each student in adjusted average attendance, except for students who live outside of the school system and attend virtual-only programs.

For the 2025-26 school year, a school system shall use SSRA money to increase the salaries provided to non-administrative staff. For the 2026-27 school year and each subsequent school year, a school system shall use SSRA money to maintain the salary increases provided during the 2025-26 school year.

Any additional money a school system receives through the SSRA may only be used for the compensation of non-administrative staff. This means that school systems should spend SSRA monies on full-time and part-time hourly and salary employees who are “non-administrative staff” and not eligible for TRA pay.

The law, however, does not dictate how a school system must distribute SSRA funds. As a result, school systems have broad discretion in determining which positions or employees to include, often based on locally chosen criteria such as years of experience. It’s important to note that while some employees may qualify for the SSRA, this does not guarantee a raise—unlike the TRA, which provides more specific eligibility and funding requirements.

The statute lists the following “non-administrative staff” positions:

• Teachers who are not eligible for TRA pay;
• School counselors;
• Librarians;
• School nurses;
• Teacher’s assistants;
• Custodial staff;
• Food services staff;
• Bus drivers;
• Administrative assistants; and
• Other support staff.

This list is not exhaustive as it notes “other support staff.” Teachers can be eligible for SSRA funds if they are not eligible for the TRA, such as those teachers with one to two years of experience or those with less than a daily four-hour average of teaching in an academic instructional setting. It is important to note that a position or title is not necessarily indicative of whether an educator is eligible for one fund or the other. The work an educator performs for a school system will matter most for eligibility purposes.

The SSRA law specifically excludes a superintendent of a school district or other administrator serving as educational leader and chief executive officer, an assistant superintendent or a person in an equivalent role, a principal or assistant principal, and an employee in a centralized supervisory role. Individuals in these categories may not receive SSRA funds, but school systems may provide pay increases to them through local funds.

TRA and SSRA Similarities

The TRA and SSRA require that school systems implement the pay increases during the 2025-26 school year. Additionally, the schools must maintain these pay increases for the 2026-27 school year and beyond. These are not one-time pay raises.

Both funds may incur additional payroll tax and benefit obligations due to increased base pay and salaries. However, TRA and SSRA funds may only be used to increase base pay for eligible employees. School systems may turn to the Basic Allotment Fund to cover such expenses instead (TEC § 48.161). 

Educator eligibility may change with additional years of experience or changes in assignments to roles that meet classroom teacher, support staff, or non-eligible administrator positions. An educator who is not eligible this school year may qualify next year with an additional year of experience. Meanwhile, an educator moving into an administrator role will lose eligibility.

TEA Continues to Release Guidance While ATPE Monitors

The TRA and SSRA are new laws that have prompted TEA to issue guidance as quickly as possible to ensure school systems can apply these pay raises to eligible employees. ATPE is closely monitoring this information as educators learn about their eligibility for these funds.

TEA issued a memo and a Frequently Asked Questions document on June 12, 2025, providing clarification in various areas. The FAQ document has been revised several times with the most recent revision on Sept. 4, 2025. TEA also shared data reporting information on Sept. 2, 2025, to enable school systems to confirm educators’ current-year eligibility for the TRA per TEC §48.158 requirements.

New information includes a temporary data standard indicator, LEADeterminedTRAEligibility, for TRA calculation purposes and clarification on how to report contracted staff in classroom teacher roles.

Educators should make sure they are aware of their eligibility status for either the TRA or SSRA based on the duties they perform in their assignments as well as years of experience for school systems. Eligible educators with legal questions regarding their status should contact ATPE Member Legal Services for assistance.