# Understanding the RAISE Act of 2025

This bill creates a new federal tax credit designed to put money directly into teachers' pockets. Every eligible teacher would get at least $1,000 back on their taxes each year, with teachers at high-poverty schools potentially receiving significantly more—up to $14,000 annually. The goal is straightforward: help teachers earn a livable wage by supplementing what states and local school districts already pay them.

The amount teachers receive depends on where they work. Teachers at schools serving mostly low-income students get the biggest credits. For example, if a school has 75% of its students living in poverty, teachers there would receive the maximum additional amount. Teachers at schools with lower poverty rates would get smaller credits, and those at schools below the 39% poverty threshold would only receive the base $1,000. Early childhood educators without a bachelor's degree can receive up to $9,000 instead of $14,000. The credit applies to elementary and secondary public school teachers, teachers at Bureau of Indian Education schools, and early childhood educators working in programs that serve low-income families.

To prevent schools and districts from using this credit as an excuse to freeze or cut teacher salaries, the bill includes strong protections. School districts that receive federal funding cannot reduce teacher pay or loan forgiveness programs because of this tax credit. Employers also cannot punish teachers by moving them to different schools or assignments to prevent them from getting the credit. Additionally, the bill increases the existing deduction teachers can take for classroom supplies from $250 to $500 and expands it to include early childhood educators. Finally, the bill provides $5.2 billion in new federal funding for school districts that maintain or increase teacher salaries, which can be used for teacher training programs, professional development, and other initiatives to strengthen the teaching profession.

RAISE Act of 2025

Hayes, Jahana

Respect, Advancement, and Increasing Support for Educators Act of 2025 or the RAISE Act of 2025This bill establishes a refundable federal tax credit for eligible educators and increases and expands the federal tax deduction for certain classroom and professional development expenses. The bill also increases federal funding for programs that support effective instruction.Specifically, the bill allows (1) eligible educators (elementary and secondary public school teachers and early childhood educators) to claim a tax credit of $1,000,&nbsp;and (2)&nbsp;eligible educators employed at a qualifying school to claim an additional tax credit of up to $14,000 ($9,000 for an early childhood educator without a bachelor’s degree) based on the qualifying school’s student poverty ratio.The bill generally defines a qualifying school as<ul><li>a public elementary or secondary school served by a local education agency eligible for federal grants that support the education of disadvantaged children,</li><li>an elementary school or secondary school funded by the Bureau of Indian Education, or</li><li>an early childhood education program serving children who are eligible for certain financial or food assistance.</li></ul>Further, the bill increases to $500 ($300 in 2025) and continues to adjust annually the above-the-line tax deduction for certain classroom and professional development expenses of educators. The bill also expands eligibility for the credit to include early childhood educators. (Above-the-line tax deductions are subtracted from gross income to calculate adjusted gross income.)Finally, the bill provides additional funding for&nbsp;education programs, including teacher&nbsp;salary incentive grants and&nbsp;professional development, certificate, and credentialing programs.