RAISE Act of 2025

Financial Support for Educators: Eligible educators can receive a refundable tax credit consisting of $1,000 plus an applicable amount based on their school's student poverty ratio (Section 2(a)).

Support for Early Childhood Educators: The bill extends certain tax deductions to early childhood educators serving at least 1,020 hours during a year (Section 3(b)).

Increased Expense Deductions: The deduction for certain expenses of elementary and secondary school teachers is increased from $250 to $500 (Section 3(a)).

Funding for Teacher Development: Local educational agencies that maintain or increase salaries can receive grants to fund teacher preparation, certifications, leadership programs, and professional development (Section 4(a)(2)(E)).

Protection Against Salary Reductions: The bill prohibits state and local agencies from reducing teacher pay or loan forgiveness programs due to the existence of the new tax credit (Section 2(c)).

Protection Against Employer Retaliation: Employers are prohibited from changing a teacher's work assignment or location specifically to prevent them from receiving or increasing their tax credit (Section 2(d)(2)).

Restrictions on Collective Bargaining: Employers engaging in collective bargaining are prohibited from including the teacher tax credit amount when determining salaries or other compensation (Section 2(d)(1)).

Requirements for Information Sharing: To receive the credit, qualifying schools may be required to collect and submit specific information to the Secretary of Education (Section 2(b)(2)).