The LEARNS Act (Act 237 of the 2023 Regular Session) established the Merit Teacher Incentive Fund Program—commonly known as Merit Pay—to recognize and reward Arkansas’s outstanding educators. The program is designed to retain high-performing teachers in classrooms across the state and to improve recruitment and retention in critical shortage areas and priority roles like mentor teachers.
The Arkansas Department of Education Office of Educator Effectiveness and Licensure has posted helpful materials about the Merit Pay program here.
Research suggests that well-designed merit pay programs can positively impact student outcomes by improving teacher recruitment and retention. We are partnering with the Arkansas Department of Education (ADE) to support implementation, assess early results and long-term impacts, and identify opportunities for improvement along the way.
Merit Pay provides educators with annual bonuses of up to $10,000 across multiple categories. For the 2024–25 school year, the legislature and ADE allocated $14.24 million for educator bonuses, along with additional funding to cover fringe benefits such as retirement. That means that Arkansas educators are receiving an extra $14.24 million in bonus pay this year through the Merit Pay program.
In its first year, the program awarded bonuses to 2,937 teachers, with an average award of $3,299.
In its second year, Merit Pay is expanding. A total of 4,283 teachers will receive bonuses in 2024–25, an increase of 1,346 educators over the previous year. The average bonus has also risen slightly, reaching $3,325.
To help teachers, administrators, and other stakeholders understand how Merit Pay works and the results of the program, this blog post:
- Provides an overview of the Merit Pay program;
- Explains 2025 eligibility criteria and bonus amounts; and
- Shares a summary of the 2025 bonus distribution.
Minimum Requirements to Qualify for a Bonus
All K–12 classroom teachers, special education teachers, library media specialists, and school counselors were eligible for merit pay. To qualify in one of the three categories above, educators had to meet the following minimum requirements:
- Be one of the following:
- A classroom teacher who works directly with students for at least 70% of their contracted time (validated by districts);
- A library media specialist; or
- A school counselor;
- Hold a current Arkansas license;
- Have three or more years of total experience;
- Have no ethics violations;
- Demonstrate positive student growth through one of the following:
- For those with student growth scores (i.e., who teach in tested grades and subjects):
- Have a three-year average student growth score of 80 or above, and
- An annual rating of “effective” or higher in the Educator Effectiveness System across four or more components.
- For those without student growth scores:
- Have an annual rating of “highly effective” in the Educator Effectiveness System across four or more components, and
- Have at least one growth artifact in the Educator Effectiveness System.
- For those with student growth scores (i.e., who teach in tested grades and subjects):
Merit Pay Bonus Categories and Eligibility Criteria
The Merit Pay program includes three bonus categories:
- Category 1: Demonstrate Outstanding Growth in Student Performance
- Category 2: Teach in Critical Shortage Areas
- Category 3: Serve as a Mentor to Aspiring Teachers Participating in Yearlong Residencies
To qualify for a bonus, educators had to meet the minimum eligibility requirements listed above and satisfy specific criteria within at least one category. The criteria and bonus amounts outlined below reflect the second year of implementation (2024–25) and are subject to change in future years.
Category 1: Demonstrate Outstanding Growth in Student Performance
Eligibility for this category is based on a teacher’s average student growth scores, which reflect the academic progress of their students relative to peers with similar test score histories. Because student growth is compared to peers with similar prior achievement, teachers serving both low- and high-achieving students have an equal opportunity to demonstrate effectiveness.
A teacher’s average student growth score above 80 indicates their students grew more than expected compared to statewide peers with similar prior performance. A score greater than or equal to 80 is used as the threshold for positive student growth in the minimum eligibility requirements above. This category, however, rewards teachers who have consistently demonstrated outstanding student growth—defined as an average growth score well above 80 across multiple school years.
The Outstanding Growth category includes four bonus levels, with teachers receiving only the highest award for which they qualify. Eligibility is based on each teacher’s three-year average student growth score, calculated using data from the 2021–22, 2022–23, and 2023–24 school years. Teachers qualified for each bonus level based on how their three-year average growth scores ranked relative to all eligible teachers statewide. This structure is designed to reward sustained excellence in advancing student learning.
For the top three composite bonus levels, scores were averaged across ELA, math, and science. Teachers who taught more than one subject during the three-year period had all available growth scores included in their composite average. The fourth bonus level is based on subject-specific growth scores.
Outstanding Growth bonus levels and amounts are as follows:
Composite 3-Year Average Growth Score Bonus Levels and Amounts:
- Top 0.5% – $10,000
- Top 1% – $9,000
- Top 5% – $6,000
Subject-Specific 3-Year Average Growth Score Bonus Level and Amount:
- Top 25% in ELA, Math, or Science – $3,000
Category 2: Teach in Critical Shortage Areas
Each year, the Division of Elementary and Secondary Education (DESE) identifies critical shortage areas based on subject needs, geographic staffing challenges, and licensure designations. Educators who met the minimum merit pay requirements and served in one or more of these areas were eligible for additional bonuses.
This category includes three distinct shortage bonus criteria, and teachers could qualify for multiple bonuses if they met the requirements for more than one area.
1. Subject Shortage – $2,500 bonus
Eligibility Criteria:
- Taught in one of the state’s designated high-need subject areas; and
- Held the appropriate license for that subject.
Eligible Subjects:
- Foreign Language
- Middle School Math
- Middle School Science
- Secondary Math
- Secondary Science
- Special Education
2. Geographic Shortage – $1,500 bonus
Eligibility Criteria:
- High- or moderate-need Education Service Cooperative region; or
- High-need district identified by DESE
Eligible Geographic Areas:
- Arkansas River ESC
- Great Rivers ESC
- Pulaski County
- South Central ESC
- Southeast ESC
- Southwest ESC
- Other districts designated as shortage areas
3. Lead or Master Professional Educator License – $1,500 bonus
Teachers who hold these designations are eligible for the bonus. These advanced licensure designations are prioritized because they are important for:
- Mentoring yearlong residents (goal: 2,000 mentors by 2027); and
- Supporting students not meeting grade-level standards in math or reading
Category 3: Serve as a Mentor to Aspiring Teachers Participating in Yearlong Residencies
The LEARNS Act requires that by 2027 all aspiring teachers in Arkansas educator preparation programs complete a one-year residency with a mentor. This creates a growing need for additional mentor teachers.
Teachers who met the minimum merit pay requirements and served as mentors were eligible for a $3,000 bonus if they:
- Held a Lead or Master Professional Educator license;
- Completed ADE-recognized coaching training; and
- Served as a mentor to a yearlong resident who completed a DESE-approved residency program in calendar year 2024.
Merit Pay Criteria and Bonus Amounts Overview
The table below provides a condensed summary of all merit pay categories, eligibility criteria, and associated bonus amounts.
| Criteria | Bonus |
| Category 1: Demonstrate outstanding growth in student performance. | |
| Top 0.5% 3-Year Average Student Growth Score Across Subjects | $10,000 |
| Top 1% 3-Year Average Student Growth Score Across Subjects | $9,000 |
| Top 5% 3-Year Average Student Growth Score Across Subjects | $6,000 |
| Top 25% 3-Year Average Student Growth Score in ELA, Math, or Science | $3,000 |
| Category 2: Teach in subject, geographic, and other shortage areas. | |
| Subject Shortage Area | $2,500 |
| Geographic Shortage Area | $1,500 |
| Lead or Master Designation Shortage Area | $1,500 |
| Category 3: Serve as a mentor to aspiring teachers participating in yearlong residencies. | |
| Mentor for a Yearlong Resident | $3,000 |
While educators receive only the highest award within the Outstanding Growth category, bonuses from other categories can be stacked. For example, Ms. Ozark, a secondary math teacher in a geographic shortage area, ranked in the top 25% statewide for 3-year average student growth in math. As a result, she qualified for a $7,000 total bonus—$3,000 for student growth, $2,500 for subject shortage, and $1,500 for geographic shortage. Many educators qualified for and received bonuses across multiple categories, reflecting their contributions across several state priorities.
Program Outcomes
As discussed above, the Merit Teacher Incentive Fund Program was created to retain high-performing teachers in Arkansas classrooms and to strengthen recruitment and retention in critical shortage and priority areas—such as subject and geographic shortage areas.
The eligibility criteria were intentionally designed to support these goals by recognizing educators who demonstrate outstanding student growth, serve in high-need subjects or locations, or take on important advanced professional roles.
To determine whether the program is achieving its intended impact, it is important to assess who received bonuses and how those patterns align with statewide staffing priorities. While this post provides an initial look at bonus recipients, future research will evaluate the program’s effects on recruitment and retention, helping ensure that the Merit Pay program continues to support Arkansas’s long-term teacher workforce strategy.
Educators Across Arkansas Received Bonuses in 2025
In 2025, 4,283 educators received Merit Pay bonuses—representing more than 10% of the teacher workforce. Of these, over 800 teachers received a bonus of $5,000 or more, and 76 teachers earned the maximum bonus of $10,000, often by qualifying in multiple categories.
Bonus recipients were widely distributed across the state, with particularly high concentrations in geographic shortage areas.
Use the interactive map below to explore district-level results and see how bonus recipients were distributed across Arkansas.
Teachers in Districts of All Sizes Received Bonuses
Our analysis of district size among Merit Pay recipients shows that bonuses were distributed widely across Arkansas’s school districts (see graph below). Notably, half of the 2025 recipients worked in districts with fewer than 3,753 students, reflecting the inclusion of many of the state’s small and rural districts. This broad distribution underscores the program’s statewide reach and impact, demonstrating that teachers are being recognized and rewarded regardless of district size or location.
2025 Merit Pay Teachers’ District Size
Teachers in a Wide Variety of Subjects and School Levels Received Bonuses
Merit pay recipients represented a broad range of subjects and educator roles (see table below). For example, 10% of recipients were special education teachers, 8% were K–2 teachers, and 5% were either counselors or library media specialists. This broad distribution underscores that the Merit Pay program recognizes excellence across a wide spectrum—not just among teachers in tested subjects and grades.
The table below highlights the diversity of bonus recipients, with substantial representation from core academic subjects as well as specialized areas such as special education, physical education, fine arts, and career and technical education. This inclusive approach reinforces the program’s commitment to elevating effective teaching in all areas of education and addressing critical teacher shortages in high-need subjects and geographic regions.
| Subject | Teachers Receiving a Bonus | Percentage of Merit Pay Recipients Teaching at Least One Course in the Area |
| Middle School (5–8) | 1,452 | 34% |
| Secondary (9–12) | 1,105 | 26% |
| Elementary (3–4) | 789 | 18% |
| Special Education | 444 | 10% |
| Elementary (K–2) | 324 | 8% |
| Physical Education and Health | 218 | 5% |
| Fine Arts | 130 | 3% |
| Career & Technical | 127 | 3% |
| Counselor | 111 | 3% |
| Foreign Language | 87 | 2% |
| Library Media Specialist | 85 | 2% |
More Experienced Teachers Were More Likely to Receive Bonuses
The Merit Pay program recognized educators with a range of experience levels, though a substantial share of recipients were veteran teachers. The median experience among recipients was 14 years, meaning half had more than 14 years in the classroom.
Because eligibility required at least three years of experience, no first-, second-, or third-year teachers received bonuses. While the program was not explicitly designed to prioritize veteran educators, the data show that more experienced teachers were more likely to qualify. In fact, approximately 70% of bonus recipients had 10 or more years of experience.
2025 Merit Pay Teachers’ Experience Distribution
The Number of Bonus Payments Expanded Significantly in 2025
The figure below shows the number of teachers who received merit pay in 2024 and 2025 (each square represents one teacher), along with a breakdown of the bonus categories they received. In 2024, the Merit Pay program awarded bonuses to 2,937 teachers. In 2025, the program expanded to reach 4,283 teachers, an increase of 1,346 educators over the previous year.
In both years, the majority of bonuses were awarded to teachers working in critical shortage areas— 69% in 2024 and 85% in 2025. This demonstrates how the state is prioritizing efforts to address persistent shortages in high-need subjects, geographic areas, and important roles.
2024 vs 2025 Number of Educators Receiving Merit Pay by Category
Educators who Earned Bonuses in Multiple Categories Received the Largest Bonuses
Educators who qualified for multiple bonus categories received the highest total awards in 2025. The average bonus increased with each additional bonus type earned, reflecting the cumulative value of stacking bonuses. For example, teachers who earned both an Outstanding Growth and a Shortage Area bonus received significantly more than those who earned only one of these awards. The Merit Pay program was intentionally structured to provide larger amounts to educators who contribute in multiple high-priority areas.
2025 Average Bonus Amount by Category
The Merit Teacher Incentive Fund Program is a promising strategy for advancing Arkansas’s educator workforce goals.
In its first two years, the program has shown strong potential in achieving its core objectives: retaining high-performing teachers and improving recruitment and retention in critical shortage areas and priority roles. The program expanded significantly in its second year, awarding bonuses to 4,283 educators—an increase of 1,346 recipients compared to the first year. This included more than 800 teachers who received bonuses of $5,000 or more and 76 teachers who earned the maximum $10,000 bonus. These substantial awards are likely to influence educators’ employment decisions and support the state’s efforts to strengthen the teacher workforce where it is most needed.
The broad distribution of bonuses across districts of all sizes—particularly in small and rural areas— demonstrates the program’s reach and its ability to recognize outstanding educators beyond larger, urban systems. Additionally, the inclusion of teachers across a wide range of subjects and roles highlights the program’s commitment to rewarding excellence across the full spectrum of teaching, not just in tested grades or subjects.
While the program has made meaningful progress in identifying and rewarding outstanding educators, it will be essential to continue monitoring its long-term impact on teacher retention and recruitment— especially in high-need areas. Ongoing analysis will help ensure the program remains aligned with Arkansas’s educational priorities and continues to strengthen the state’s teaching workforce in the years ahead.