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119-s-1697119th CongressWALLET

RAISE Act of 2025

Sponsored By: Senator Booker, Cory A. [D-NJ]

Introduced

Summary

A refundable teacher tax credit targeted to teachers at higher-poverty schools and new federal funding to support teacher pay. The bill would expand educator deductions and link extra credit amounts to a school’s student poverty level.

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  • Educators: Eligible elementary, secondary, and early childhood teachers would be able to claim a refundable credit starting at $1,000 plus an additional amount tied to their school’s student poverty ratio. Teachers must be the school’s “teacher of record” and provide at least 75% of standard classroom hours to qualify, and early childhood educators have a lower $9,000 baseline for the extra amount.
  • Local school systems: States and local educational agencies would get mandatory, formula-driven funding under the Elementary and Secondary Education Act to maintain or raise teacher pay. The bill creates a separate teacher salary incentive reserve and requires funding beginning in fiscal year 2026.
  • Employers and labor relations: The credit could not be used in collective bargaining salary calculations or as punishment for eligible educators. The Federal Labor Relations Authority could enforce violations as unfair labor practices.

*The bill would reduce federal revenue through a refundable tax credit and authorize mandatory federal funding for teacher salaries starting in fiscal year 2026.*

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Bill Overview

Analyzed Economic Effects

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

Refundable teacher tax credit

This bill would create a refundable federal tax credit for eligible educators. The base credit would be $1,000. If you work at a qualifying school, you would get extra money based on the school's poverty rate. The extra is (school poverty rate minus 39 points) divided by 36, capped at 1, times $14,000. Early childhood educators without a bachelor's degree would use $9,000 instead. The credit would apply for school years ending with or within the taxable year for taxable years beginning after enactment. Starting after 2026, dollar amounts would be adjusted yearly for inflation and rounded to the nearest $50. The Department of Education would collect and give Treasury the school data needed to decide who and how much.

Protections for teachers' pay and jobs

This bill would stop State and local education agencies from cutting teacher pay or loan forgiveness because teachers qualify for the credit. Agencies would have to show, if asked by Treasury, that school pay money stayed the same. Employers that bargain with eligible educators could not include the credit amount when setting salary. Employers also could not reassign or move a teacher mainly to stop them getting the credit. The Federal Labor Relations Authority would be able to investigate and enforce complaints.

Sponsors & CoSponsors

Sponsor

Booker, Cory A. [D-NJ]

NJ • D

Cosponsors

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 5/8/2025

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 5/8/2025

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 5/8/2025

  • Sen. Rosen, Jacky [D-NV]

    NV • D

    Sponsored 5/8/2025

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 5/8/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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