North Dakota lawmakers and state officials announced a proposal Monday that would award annual bonuses to teachers across the state, including those serving Bismarck and Mandan, in an effort to boost recruitment and retention. The initiative, named the Support Teachers and Youth Succeed stipend, or STAYS, would utilize 10% of the earnings from the Common Schools Trust Fund.
If approved by lawmakers during the 2027 legislative session, estimated bonuses for the first year would be approximately $3,400 per teacher. Rep. Mike Nathe, a Republican from Bismarck, stated the bonuses would be awarded each fall and increase as the fund’s earnings grow.
Speaking at a press conference at the Capitol, Rep. Nathe emphasized the urgency of the situation, calling the teacher shortage in North Dakota "an urgent, statewide workforce issue" that "deserves a statewide response." This issue affects classrooms directly within Burleigh and Morton counties, as schools statewide grapple with staffing challenges.
According to the Department of Public Instruction, more than 230 North Dakota teaching positions remained unfilled in 2025. Superintendent of Public Instruction Levi Bachmeier recounted visiting a Nelson County school where students lacked a science teacher and resorted to online coursework for the subject. Bachmeier stressed that the quality of an instructor is the "single greatest predictor of learning," underscoring the necessity of filling these vacant classrooms.
To qualify for the bonus, full-time teachers would need to fulfill their teaching contract. Rep. Nathe clarified that this means teachers "can’t even leave a day early," requiring completion of their full contractual obligations. The bonuses would be capped at 25% of an average teacher’s base salary.
The proposal has garnered support from Governor Kelly Armstrong’s office and Superintendent Bachmeier. Nick Archuleta, president of North Dakota United, an organization representing teachers and public employees, also expressed support for the STAYS proposal. Archuleta noted a provision in the bill draft designed to prevent school districts from using the bonus program to decrease existing teacher salaries. He stated that teachers he has spoken with are "excited about it" and that the bill aims to recruit and retain the "best and the brightest" into the profession.
The Common Schools Trust Fund, the proposed source for these stipends, was valued at over $9.1 billion as of May 31, according to the North Dakota Treasurer’s Office. This fund generates revenue from various sources, including mineral rights leasing, oil and gas royalties, rent from agricultural land leases, and a portion of the oil extraction tax. State Treasurer Thomas Beadle explained that distributions from the fund are based on a five-year average of earnings and are specifically designated for K-12 education.
For the 2025-27 period, the fund distributed $585 million, which accounted for approximately 24% of the state’s K-12 education budget. Beadle projected increased fund earnings of $715 million to $720 million for 2027-29, assuring that the fund is anticipated to have sufficient earnings to support the teacher bonus proposal without reducing current K-12 education allocations.
Superintendent Bachmeier indicated that these projected increases in the Common Schools Trust Fund could lead to a significant rise in the annual stipend over time. He projected that the annual stipend "could be over $10,000" before his two daughters graduate from a North Dakota high school. Bachmeier said the policy was serious and meaningful, with the potential to change the narrative on education as a financially sustainable profession in North Dakota.
While broadly supported, the inclusion of private school teachers in the bonus program has prompted discussion. Rep. Nathe defended the decision, stating that private school teachers are North Dakota citizens who pay taxes, and that the proposal aimed to avoid creating an "uneven salary field." However, Senate Minority Leader Sen. Kathy Hogan, a Democrat from Fargo, expressed excitement for the proposal’s main goal but questioned the inclusion of private school teachers. Sen. Hogan suggested that private schools might not face the same recruitment challenges as public schools and have "different funding streams and they have different alternatives," indicating that this aspect would warrant further debate during the legislative session.
The proposal emerges against a backdrop of ongoing concerns about teacher compensation and retention in North Dakota. According to the National Education Foundation, North Dakota ranked 41st in the nation for teacher pay in 2024-25. The North Dakota Retention and Recruitment Task Force, established by then-Governor Doug Burgum in 2024, previously recommended improvements to teacher retirement, health benefits, and pay structures to "maximize lifetime earnings." Furthermore, a 2026 North Dakota Community Survey on Education revealed that over 80% of 2,200 respondents believed North Dakota teachers were either somewhat or significantly underpaid.
The bill is expected to be formally introduced when lawmakers convene in January, setting the stage for legislative discussions on this significant investment in the state’s educational workforce.