US states compete for teachers with record salary increases

Teacher shortages are forcing states into a bidding war, with some offering the biggest pay raises in decades

States across America are throwing money at a growing problem: they can’t find enough teachers. From Texas spending $4.3 billion to Utah doubling starting salaries in just four years, governments are getting serious about teacher pay in ways we haven’t seen before.

But here’s the catch – even with these “record” raises, many teachers are still making less money than they did 10 years ago when you factor in inflation. It’s a complicated story that shows just how deep the teacher shortage crisis really goes.

The salary race heats up

This year has been unlike any other for teacher pay. In February, Texas lawmakers unanimously passed what they’re calling “the largest teacher pay raise in state history.” The $4.3 billion plan would bump average teacher salaries from $54,000 in 2019 to $69,000.

Not to be outdone, North Carolina’s governor proposed 10.6% raises in March. Utah announced another $1,446 increase, building on years of growth that took starting salaries from about $44,000 in 2020 to nearly $60,000 today.

It’s not just these states either. Arkansas and South Carolina now offer $50,000 starting salaries. New Mexico goes even higher at $52,000. The competition is real, and it’s happening right now.

What states are offering in 2025

State	Starting salary	Investment	Key features
Texas	$47.5K → $50K	$4.3B	Auto raises; merit pay
Utah	$44K → $60K+	$1.4K boost	Rural bonuses
N. Carolina	+10.6% raise	$876M+	Master’s pay restored
Arkansas	$50K	TBD	Competitive baseline
S. Carolina	$50K	TBD	Regional match
New Mexico	$52K	TBD	Highest in region
Georgia	$43.6K base	$368M	Annual increases

The inflation reality check

Here’s where things get tricky. While states are celebrating these increases, the National Education Association’s report tells a different story. Even though the average teacher salary hit $74,177 this year (up 3%), teachers are actually making 5% less than they did a decade ago when you account for inflation.

It gets worse. Teachers now earn 26.6% less than other college graduates with similar experience – the biggest gap on record. That means a teacher makes about $1 for every $1.36 that other college-educated professionals earn.

Teacher pay vs inflation over time

Year	Avg salary	Real value	Pay gap	Starting
2015	$58K	$58K	17%	$39K
2020	$65K	$62K	19%	$41K
2025	$74K	$55K	27%	$47K
Change	+28%	-5%	+10pts	+18%

This explains why states feel they need to make such big moves. Even the 4.4% increase in starting salaries – the biggest in 15 years of tracking – still leaves new teachers earning $3,728 less than they would have in 2008-2009, adjusted for inflation.

Border wars and billboard recruiting

The competition is getting creative, and sometimes desperate. In Kentucky, school districts near the Tennessee border are putting up highway billboards advertising $50,000 starting salaries. They’re literally trying to poach teachers from neighboring states.

Utah is taking a different approach, offering bigger raises to teachers in rural districts. A teacher with five years of experience in a small district can get $10,000 more, compared to $5,500 in larger districts. It’s their way of trying to solve the urban-rural teacher gap.

Texas has expanded its merit pay program from 300 teachers in 2019 to 30,000 this year. Top performers can earn an extra $32,000, while new bonus tiers offer $3,000 to $9,000 for good teachers who don’t quite make the top tier.

Why this matters beyond teacher pay

The teacher shortage isn’t just about empty classrooms – though there are over 55,000 vacant positions nationwide. What’s really concerning is that 270,000 teaching positions are filled by people who aren’t fully qualified for the job. That’s actually more than the number of empty positions.

The shortage hits some schools harder than others. High-poverty schools are 57% more likely to report being understaffed compared to wealthier schools (42%). Schools with mostly students of color face similar challenges, with 49% reporting staffing problems versus 41% of schools that are mostly white.

This creates a vicious cycle. The schools that need the most help – those serving low-income students and students of color – are the ones most likely to have trouble finding qualified teachers.

Different strategies, same goal

States are trying various approaches to solve their teacher problems. Some focus on across-the-board salary increases, while others use targeted bonuses or performance pay.

Texas combines both strategies – guaranteed raises plus merit pay expansion. The idea is to create a system where good teachers can eventually earn six-figure salaries while staying in the classroom.

Utah emphasizes consistency and rural support. They’ve made steady investments year after year, and their focus on helping smaller districts compete has helped them rank second nationally in education.

Georgia takes a more gradual approach, with Governor Brian Kemp successfully pushing through regular salary increases since 2020. The state has invested $368 million in teacher raises this year alone, plus $242 million more in health benefits.

The sustainability question

While these salary increases are impressive, they raise important questions about the future. Can states keep this up? What happens when budgets get tight or the economy turns down?

The current investments are happening during good economic times, with strong state revenues and federal education funding. But economic downturns could threaten these higher salary levels, potentially creating instability for teachers and school districts.

There’s also the geographic inequality issue. States with stronger economies can afford to engage in these salary wars, but what about less wealthy areas? This could make educational disparities between regions even worse.

Beyond the paycheck

Money matters, but it’s not everything. Research consistently shows that working conditions, administrative support, and professional autonomy are major factors in whether teachers stay or leave. States pouring money into salaries might also need to improve the day-to-day experience of teaching to get the best results.

Some states are recognizing this. North Carolina’s plan includes a $300 stipend for school supplies, acknowledging that teachers shouldn’t have to buy pencils and paper with their own money. Texas is creating liability protections for teachers trying to maintain classroom discipline.

What this means going forward

The current wave of teacher salary increases represents real progress, but it’s happening against a backdrop of serious challenges. States are finally taking teacher pay seriously, with bipartisan support in many places. The competitive pressure between states could ultimately benefit teachers everywhere as compensation standards rise.

However, the focus on big percentage increases can be misleading when you look at inflation and opportunity costs. Even with “record” raises, teaching remains economically challenging compared to other careers requiring similar education.

The timing matters too. These increases are coming during a period of strong state finances. Economic pressures down the road could threaten the sustainability of these compensation levels.

The bigger picture

The interstate teacher salary competition shows both what’s possible and what’s limited about state-level education policy. Individual states can make meaningful improvements, but the national scope of teacher shortages suggests that coordinated approaches might work better than competitive ones.

For this to work long-term, states need to pair salary increases with efforts to improve teaching conditions and professional support. They also need sustainable funding that can weather economic ups and downs. Most importantly, they need to prevent the emergence of a two-tiered system where your zip code determines access to quality education.

The data shows states are taking teacher compensation more seriously than they have in decades. Whether this translates into lasting improvements in educational quality and equity depends on how well policymakers balance competition with collaboration, and salary increases with comprehensive support for the teaching profession.

This analysis draws from current legislative data, NEA reports, and Education Week from 2024-2025, examining state-level education policy trends and their implications for teaching profession sustainability and educational equity.