The quality of the teacher in front of a classroom continues to be one of the top three contributors or predictors of student achievement. While individual student factors are crucial, the environment created by educators and support networks plays a substantial role in academic achievement. Yet the challenge of identifying, recruiting, and retaining K-12 teachers and support staff has become increasingly difficult, particularly in the post-COVID era. This challenge has impacted all 50 states and prompted a variety of policy and funding responses from state legislatures across the United States.
Compensation & Recruitment the Focus in 2025
Teacher workforce issues were front and center in state policy agendas throughout 2025, with at least 26 governors prioritizing educator recruitment, retention, and compensation in their legislative sessions. From substantial salary increases to innovative housing solutions, states demonstrated a renewed commitment to strengthening the teaching profession amid persistent nationwide shortages.
According to the Education Commission of the State’s Education Policy Tracking Database, 1,036 education-specific policy or appropriation bills made it through the legislative process in 2025 in the United States and three territories. That represents 17.8% of all bills introduced in state legislatures in 2025 (5,788). Of those education-oriented measures, eighty bills from 31 states (approximately 8% of bills passed) dealt specifically with the teaching profession on issues ranging from licensure to recruitment, educator preparation programs to teacher compensation, and more.
A National Groundswell for Teacher Pay
The momentum for competitive teacher compensation reached unprecedented levels in 2025. Governors across the political spectrum acknowledged that competitive salaries remain fundamental to building a stable educator workforce. Florida Governor Ron DeSantis highlighted his state's record $4.6 billion investment in teacher salaries, while Texas Governor Greg Abbott championed pathways to six-figure salaries for exemplary teachers. In West Virginia, Governor Patrick Morrissey emphasized the strategic importance of outpacing neighboring states' compensation to attract high-quality educators.
Several states confronted unique workforce challenges requiring creative solutions. Hawaii Governor Josh Green directly connected his state's teacher shortage to the affordable housing crisis, prioritizing housing construction for educators. Maryland Governor Wes Moore announced plans for a national recruitment campaign and debt-free pathways into teaching, recognizing that traditional in-state pipelines alone cannot meet demand. Pennsylvania Governor Josh Shapiro celebrated the expansion of student teacher stipends, acknowledging that financial barriers during clinical preparation deter many candidates from pursuing education careers.
Spotlight States: Five Lead the Way
Indiana's Comprehensive Compensation Reform (SB 146): Indiana enacted one of the most significant teacher compensation packages in the nation through Senate Bill 146, which passed with overwhelming bipartisan support—47-0 in the Senate and 90-1 in the House. Effective June 30, 2025, the legislation increased the state's minimum teacher salary from $40,000 to $45,000 and elevated the required school expenditure threshold for teacher compensation from 62% to 65% of state tuition support. The bill also established the Indiana Teacher Recruitment Program and removed prohibitions on ranking teacher preparation programs, creating greater transparency in educator training quality. The legislation reflected Governor Mike Braun's commitment to making teaching financially viable for early-career educators while ensuring that state funding directly benefits classroom professionals rather than administrative costs.
Texas Delivers Historic Investment (HB 2): Texas Governor Greg Abbott signed House Bill 2 into law in June 2025, authorizing a record $8.5 billion investment in public education with $4 billion dedicated specifically to teacher compensation. The centerpiece of the legislation is the Teacher Retention Allotment (TRA), which provides tiered salary increases based on years of experience and district size. Teachers with five or more years of experience in small districts (fewer than 5,000 students) receive $10,000 annual increases, while those in larger districts receive $5,500 increases. The legislation also expanded the Teacher Incentive Allotment, Texas's performance-based compensation system, raising stipends for master teachers from $32,000 to $36,000 annually and creating a new "acknowledged" designation worth $3,000. Importantly, the bill prioritizes rural and high-poverty communities by providing higher compensation multipliers for educators serving in these critical areas.
Pennsylvania Expands Student Teacher Support: Pennsylvania's 2025-26 budget, signed into law on November 12, 2025, allocated $30 million to the Pennsylvania Student Teacher Support Program—a 50% increase over the previous year. The program provides $10,000 stipends to eligible student teachers during their required 12-week placements, with additional $2,500 grants available for cooperating teachers who supervise them.
Despite the increased appropriation, approximately 3,500 student teachers applied for stipends during the 2025-26 academic year, exceeding available funding. The Pennsylvania Higher Education Assistance Agency (PHEAA) is working to determine provisional eligibility and distribute funds to school districts for remittance to qualifying candidates. Advocacy organizations, including the Pennsylvania State Education Association and Teach Plus Pennsylvania, continue pushing for full funding at $50 million to ensure universal access to this career-entry support. The program addresses a critical barrier to teacher recruitment: student teachers typically cannot maintain paid employment during their full-time clinical placements, creating financial hardship that disproportionately impacts candidates from lower-income backgrounds. This is an issue that a number of other states are looking to tackle including neighboring Ohio.
Maryland Accelerates "Grow Your Own" Initiatives: In December 2025, Maryland Governor Wes Moore announced $19 million in grants to expand the state's Grow-Your-Own Educators Program, a cornerstone of the Blueprint for Maryland's Future education reform package. The initiative recruits aspiring teachers from within school communities—paraprofessionals, support staff, and community members—providing financial support and preparation pathways to earn teaching credentials while remaining employed in their districts. Maryland's comprehensive approach to the teacher shortage has shown measurable results: teacher vacancies declined from 1,619 in the 2024-25 school year to 886 in 2025-26, a reduction of nearly 50%. In November 2025, the Maryland Board of Public Works approved a $2.8 million contract with TEACH.org to launch a statewide and national recruitment campaign targeting high-quality educators. The state's Blueprint legislation also established a teacher career ladder with performance-based advancement and salary increases, though implementation of some components—including expanded teacher collaborative planning time—has been adjusted to address current workforce capacity constraints.
Hawaii Invests in Educator Housing: Hawaii took an unconventional but essential approach to teacher retention by directly addressing the state's housing affordability crisis. In May 2025, the Hawaii State Department of Education broke ground on a $20 million, 47-unit rental housing development in Lahaina, Maui, specifically for educators. The project, scheduled for completion in December 2025, prioritizes teachers displaced by the devastating 2023 wildfires and those working in West Maui schools. The state's employee survey revealed that nearly one-third of Maui educators faced housing displacement following the fires, and more than 20% of Lahaina teachers considered leaving Hawaii entirely due to housing costs. While two bills proposing $500 monthly housing vouchers for teachers (HB 89 and HB 323) failed to pass during the 2025 legislative session, the Lahaina project represents a concrete commitment to linking educator retention with housing stability. According to online news sources, a second teacher housing project in Mililani is progressing toward a 2029 opening.
Broader State Actions and Emerging Trends to Monitor
Beyond the five highlighted states, numerous others advanced teacher workforce legislation:
South Dakota (though passed in 2024) implemented its minimum $45,000 teacher salary requirement beginning in fiscal year 2025, with future increases tied directly to state aid funding growth. The law includes accountability provisions beginning in fiscal year 2026-27, with $500 penalties per teacher for districts failing to meet compensation requirements. Find more information here.
Colorado passed Senate Bill 25-154, creating flexible pathways for licensed secondary teachers to earn early childhood and elementary endorsements through demonstrated competencies rather than solely through traditional coursework. This approach expands the pool of qualified educators in high-demand areas while recognizing the expertise of experienced teachers. Find more information here.
Oklahoma enacted multiple workforce bills during its 2025 session, including Senate Bill 235, which established a Grow-Your-Own Educator Program providing matching funds for school districts to support paraprofessionals and support staff in earning teaching degrees. The legislature also passed House Bill 1087, extending salary step increases for 10 additional years beyond the previous 25-year ceiling, rewarding veteran educators who remain in the classroom. Click the following links for SB 235 and HB 1087.
Florida maintained its commitment to teacher pay, budgeting $1.36 billion for salary increases in fiscal year 2025-26—an increase of nearly $101.6 million over the previous year—while preserving the state's $47,500 minimum starting salary established in 2020.
Next Steps: The Road Ahead
While significant progress occurred in 2025, challenges remain. According to reports, eacher attrition continues to drive 90% of annual hiring demand, with fewer than one-fifth of departures due to retirement. Declining enrollment in teacher preparation programs nationwide compounds recruitment difficulties. Several states—including North Carolina, Arizona, and Kentucky—debated substantial compensation increases but had not finalized legislation as of December 2025. ESA advocates should continue to monitor these issues in their respective states.
The 2025 legislative year demonstrated that states recognize teacher compensation and workforce stability as non-negotiable investments in educational quality. As competition for talented professionals intensifies across all sectors, the question for state policymakers is not whether to act, but whether current investments will prove sufficient to build the stable, highly qualified teacher workforce that students deserve. The evidence from Maryland's dramatic reduction in vacancies and the overwhelming demand for Pennsylvania's student teacher stipends suggests that when states commit meaningful resources to comprehensive workforce strategies, measurable progress follows. ESA advocates should incorporate this into their messaging.
Educational Service Agencies play a critical role in supporting schools and districts, yet their unique needs and challenges often require tailored advocacy approaches. The recently released AESA Advocacy Guide recognizes the distinct position of ESAs and offers targeted strategies to help you navigate the complex landscape of education policy and funding.