PRIA Logo™
119-hr-3308119th CongressWALLET

RETAIN Act

Sponsored By: Representative Schneider, Bradley Scott [D-IL-10]

Introduced

Summary

Would create a refundable tax credit to retain educators who serve high‑need students. The bill would target early childhood through K–12 staff and scale credit amounts by years of continuous service.

Show full summary
  • Early childhood educators, program directors, and providers would get a refundable credit that rises with tenure and can reach $11,600 in the tenth year and goes to zero after 20 years.
  • Teachers, paraprofessionals, school leaders, and school‑based mental health staff would be eligible when they serve qualifying high‑need schools, including many Title I and certain Bureau of Indian Education schools. Employers would report continuous school years on Form W‑2 to verify eligibility.
  • State and local agencies would be barred from reducing pay or loan‑forgiveness because an employee claims the credit and must show allocations stay the same if asked by the Secretary of Education. The bill would also require the Bureau of Labor Statistics to publish annual salary series for teachers by Title I status and region and for early childhood educators by highest degree.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Refundable tax credit for educators

If enacted, you could get a refundable tax credit for working as a teacher, paraprofessional, school leader, school mental health provider, or early childhood educator at a qualifying program or school, starting with tax years after December 31, 2025. The credit would be $5,800 in years 1–2, $7,000 in years 3–4, $8,700 in years 5–9, $11,600 in year 10, $8,700 in years 11–15, $7,000 in year 16, and $5,800 in years 17–20; more than 20 years pays $0. Your first counted year would only qualify if you worked at least 4 months before the tax year starts. The dollar amounts would rise with inflation for tax years after 2026. Employers would have to list your continuous school years on your W-2 to help you claim and verify the credit.

Protects pay and loan relief for educators

If enacted, state and local education agencies could not cut your pay or loan-forgiveness help because you qualify for the federal credit. If asked, they would have to show you get the same state or local money you would have received without the credit. This protection would start with tax years after December 31, 2025.

Data to verify schools and track pay

If enacted, Education and Health and Human Services would share data with Treasury to decide if schools and early childhood programs qualify for the credit, starting with tax years after December 31, 2025. The Labor Department would publish yearly reports on educator base pay, showing teacher pay in Title I vs. non-Title I schools and early childhood pay by highest degree. The pay data series would begin at enactment and update each year.

Sponsors & CoSponsors

Sponsor

Schneider, Bradley Scott [D-IL-10]

IL • D

Cosponsors

  • Rep. Stevens, Haley M. [D-MI-11]

    MI • D

    Sponsored 5/8/2025

  • Rep. Craig, Angie [D-MN-2]

    MN • D

    Sponsored 6/9/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation