RAISE Act of 2025

Summary · Congressional Research Service (nonpartisan)

This 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 as a 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, or an 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.