Creates a new refundable Teacher Tax Credit and boosts the educator expense tax deduction, while guaranteeing annual, inflation‑adjusted funding for teacher quality under federal education law. The credit gives eligible educators $1,000 plus an added amount for teachers in higher‑poverty schools, and the deduction for classroom supplies increases to $500 and now includes certain early childhood educators.

It also locks in annual funding for teacher effectiveness programs and sets aside incentive grants for school districts that maintain or raise teacher salary schedules. The Department of Education must share school poverty data with Treasury, and state or local employers may not cut pay or use the new credit in bargaining or as punishment. Tax changes apply after enactment, and education funding starts in fiscal year 2026 and grows with inflation.