RAISE Act of 2025
Congress proposes refundable teacher tax credit and $5.2B in school grants tied to teacher pay
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- Creates a new refundable federal tax credit for teachers and early childhood educators: $1,000, with extra credit for those working in higher-poverty schools.
- The extra credit is tied to how high a school’s student poverty rate is, up to an added $14,000 (or $9,000 for some early childhood educators without a bachelor’s degree).
- Raises the existing teacher classroom-supply deduction from $250 to $500 and expands it to cover early childhood educators who work enough hours.
- Requires states, school districts, and early-childhood program funders not to cut teacher pay or loan forgiveness just because educators qualify for this federal tax break.
- Sets mandatory federal funding for grants to school districts that maintain or increase teacher salary schedules, with $5.2 billion for fiscal year 2026 and annual increases tied to inflation after that.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
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Source Information
Document Type
Congressional Bill
Official Title
RAISE Act of 2025
Data Sources
Sponsor
Cosponsors
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