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Issue Explainer

Teacher Retention Bonus Fund: Questions and Answers

A proposed teacher retention fund could provide annual bonuses to eligible North Dakota teachers, with payments currently estimated at about $3,400 per teacher in 2027. The proposal still needs legislative approval. Find out who could qualify, how the fund would work and how you can help make the case for keeping experienced teachers in North Dakota classrooms.
Published: October 5, 2026

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Who would be eligible for the retention bonuses?

Teachers who have worked in North Dakota for at least one year and have signed a contract at a school district in North Dakota for the following year would be eligible.

Would education support professionals, like paraprofessionals, bus drivers, administrative staff, or other non-teachers, be eligible?

No, only licensed teachers would be eligible. According to the bill sponsor, all non-administrator full-time employees with a teaching license (including those who work as, for example, librarians) will be eligible.

Is this meant to replace K-12 funding?

No. Increases in K-12 education are a top priority for North Dakota United and we will continue to fight for increases in K-12 funding our students and educators deserve.

Would this only apply to public school teachers?

No. Private school teachers would also qualify as long as they are licensed by the state of North Dakota and meet the other qualifications.

How much would the retention bonuses be?

Estimates for the 2027 round of retention bonuses are around $3400 per teacher.

When would retention bonuses be paid out?

The proposal suggests bonuses would be paid in the late fall/early winter every year. Sometime around December 1.

How would the state pay for this?

The North Dakota Common Schools Trust Fund. Several revenue sources contribute to the principal balance of this fund. It earns cash rents from leases of individuals using the lands for production agriculture, sales of the land, leasing of mineral rights, royalties, and bonus payments from the production of minerals, and 10% of the Oil Extraction Taxes collected by the state.

The proposed teacher retention bonuses would be funded by the earnings of this fund, leaving the principal balance untouched to allow for future growth. 10% of the fund’s yearly earnings would be divided up among all the teachers in the state that qualify. Importantly, the 10% stream would be recurring, which means as the fund grows and earnings grow, teacher retention bonuses would grow.

A purposely simplified example: if the fund has $1000 of principal funds and yields $100 year-over-year, 10% of the yield would be $10. If ten teachers qualify for retention bonuses, the $10 would be divided among those teachers, and they would each receive $1.

As of April 30, 2026, the balance of the Common Schools Trust Fund was $8,869,170,327.

More information about the Common Schools Trust Fund available at the following link:

https://www.treasurer.nd.gov/north-dakota-government-funds

Would this be a one-time payment?

The proposal would establish recurring yearly payments. If it’s passed as proposed, it would not expire, and it would require a future legislative body to proactively change the law (rather than having the option to let it expire).

Is this a done-deal?

No. This is the first step in a long process. This proposal could change as it makes its way through the legislature. While there is a lot of support for this bill, including from Governor Kelly Armstrong, State Superintendent Levi Bachmeier, and bipartisan leadership in both chambers of the legislature, it needs to be approved by both chambers and signed into law to take effect. The legislature meets in January 2027.

Is there anything I can do to ensure it passes?

Yes! Call or email your lawmakers and ask them to vote for it! If you’re not sure who your lawmakers are, you can find out here: https://www.reportcard.ndunited.org/find-your-district

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With more than 11,500 members across the state, NDU supports equal opportunities for success for ALL North Dakota students, and respect and support for all educators. NDU members are teachers, community college professors, speech pathologists, bus drivers, secretaries, retired educators and student teachers.