RAISE Act of 2025
RAISE Act of 2025
Plain Language Summary
# Summary of the RAISE Act of 2025 The RAISE Act would provide financial support to teachers and early childhood educators through tax credits and increased funding. Specifically, it would give eligible educators a $1,000 federal tax credit, plus an additional tax credit of up to $14,000 (or $9,000 for early childhood educators without a bachelor's degree) if they work at schools serving low-income students.
The bill would also expand the existing tax deduction for classroom and professional development expenses and increase federal funding for programs that improve teaching quality. **Who it affects:** The bill targets public school teachers, early childhood educators, and the students they serve—particularly in schools with higher poverty rates. **Current status:** The bill is currently in committee (S 1697 in the Senate) and has not yet been voted on or passed.
CRS Official Summary
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, and (2) 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 asa public elementary or secondary school served by a local education agency eligible for federal grants that support the education of disadvantaged children,an elementary school or secondary school funded by the Bureau of Indian Education, oran early childhood education program serving children who are eligible for certain financial or food assistance.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 education programs, including teacher salary incentive grants and professional development, certificate, and credentialing programs.
Latest Action
Read twice and referred to the Committee on Finance.