This study examines the implementation of the Special Regional Allowance (SRA) policy and its impact on teachers’ work motivation and performance at Mbung-Mbuang One-Roof Public Middle School, located in Bokan Islands Subdistrict, Banggai Laut Regency, Central Sulawesi Province, a designated 3T area (Underdeveloped, Frontier, and Outermost). A qualitative case study approach was employed to gain a comprehensive understanding of policy implementation at the school level. Data were collected through in-depth interviews with relevant stakeholders, classroom and environmental observations, and document analysis of regulatory and administrative records. The data were analyzed inductively through data reduction, data display, and conclusion drawing. The findings reveal that the implementation of the SRA generally complies with the established regulatory framework, particularly through verification mechanisms based on Dapodik data. However, its effectiveness is influenced by the quality of intergovernmental coordination, administrative capacity, and infrastructural constraints in remote areas. The allowance has positively affected teachers’ work motivation, discipline, loyalty, and instructional preparedness. It has also enhanced teachers’ economic welfare and psychological stability, thereby supporting retention in geographically challenging regions. Nonetheless, challenges persist, including administrative barriers, delays in fund disbursement, changes in employment data, and bureaucratic complexities that affect the consistency and timeliness of distribution. Strengthening vertical coordination, ensuring regular data synchronization, and improving guidance for schools and teachers are recommended to optimize policy implementation.