House Bill 3 (HB 3) was passed by the 86th Texas Legislature in 2019 and signed into law. This legislation established the Teacher Incentive Allotment (TIA) to reward, retain, and recruit effective teachers in the classroom. Through the TIA, teachers have the opportunity to earn one of three designations: Recognized, Exemplary, and Master, and the funding pays these highly effective teachers whose students show measurable improvement in academic growth. By statute, the amount of the allotment generated by teacher designations is dependent upon the designation level of the teacher, the social-economic status of the campus where the teacher serves as well as the rural status of the campus. TIA Funding was built into Texas state law as part of House Bill 3. It is a Tier 1 allotment through the Foundation School Program, the system through which the state provides funding to districts.