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119-s-1676119th CongressWALLET

RETAIN Act

Sponsored By: Senator Durbin, Richard J. [D-IL]

Introduced

Summary

A refundable tax credit to keep teachers and school leaders in high-need settings. The RETAIN Act would create a per-year retention credit for eligible early childhood staff, K-12 teachers, paraprofessionals, school-based mental health providers, and school leaders.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Federal retention tax credit for educators

If enacted, you would be able to claim a new refundable retention tax credit if you worked in an eligible early childhood or K–12 role during the school year. The credit amount would depend on how many continuous school years you served. Yearly amounts range from $5,800 up to $11,600 (peak in the 10th year), with the full schedule and a rule that the credit becomes $0 after more than 20 total school years. A first-year credit would require at least four months worked before the tax year's first day. Employers would have to put your continuous years on your W-2, and State or local education agencies could not cut pay or loan-forgiveness because you are eligible. The Treasury would get program and school information from Education and HHS to check who qualifies. The credit would apply for tax years beginning after December 31, 2025, and the dollar amounts would be indexed for cost-of-living increases after 2026.

Annual teacher and early educator salaries

If enacted, the Secretary of Labor would publish an annual data series on the BLS website. The series would show average base teacher salaries by Title I status and region, and early childhood educator salaries by highest degree. The data would be updated every year to help states, schools, and the public understand pay patterns.

Sponsors & CoSponsors

Sponsor

Durbin, Richard J. [D-IL]

IL • D

Cosponsors

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 5/8/2025

Roll Call Votes

No roll call votes available for this bill.

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