NYC Teachers Could Receive $21 Million in Bonuses Under Class Size Deal
New York City taxpayers may be required to fund up to $21 million in bonus payments for thousands of public school teachers as part of an agreement tied to the easing of classroom-size mandates, according to a new analysis.
Under the agreement, educators working in schools that receive exemptions from mandatory class-size limits will be eligible for salary increases of up to $8,500 during the school year beginning in September and up to $9,500 in the following year. The incentive package was negotiated between the city and the powerful United Federation of Teachers (UFT).
The bonus arrangement was included as part of a broader deal to amend a controversial 2022 state law governing class sizes. In exchange, Mayor Zohran Mamdani and the city’s Department of Education (DOE) were granted an additional two years to fully comply with the law’s requirements.
A report released by the New York City Independent Budget Office (IBO) estimates that at least 2,463 teachers will qualify for the bonuses during the upcoming school year.
The IBO noted that it remains unclear whether the Department of Education will require additional funding to cover the bonus payments. The report added that actual costs could be lower if some teachers receive less than the maximum bonus, student enrollment declines, fewer educators qualify, or school principals reassign students to keep class sizes within required limits.
The original state law required that by next year, 80 percent of New York City public school classrooms meet class-size caps ranging from 20 to 25 students, depending on grade level. Without legislative changes, all classrooms would have been required to comply by the 2027–28 school year, with limits set at 20 students for kindergarten through third grade, 23 students for grades four through eight, and 25 students for high school classes.
Under the revised timeline, however, the Department of Education will have until the 2029–30 school year to fully implement the requirements. City officials have estimated that the extension will save approximately $500 million.
The agreement, reached among Governor Kathy Hochul, the Democrat-controlled state legislature, Mayor Mamdani, and the UFT, establishes phased compliance targets. The city must meet the class-size requirements in 70 percent of classrooms by the 2026–27 school year, 80 percent by 2027–28, and 90 percent by 2028–29.
UFT President Michael Mulgrew said the pay differential was designed as an incentive to ensure the city follows through on its commitment to reduce class sizes and does not retreat from its obligations.
