RAISE Act of 2025

This bill would create a refundable federal tax credit for teachers and early childhood educators to help provide a livable wage. Each eligible educator would get $1,000, plus extra if they work at a qualifying, higher-poverty school. The extra amount can be as much as $14,000—or up to $9,000 for early childhood educators without a bachelor’s degree—based on how far the school’s student poverty rate is above 39 percent, scaled across 36 percentage points .

• Who is affected: Public elementary or secondary school teachers who are the main teacher for a class (teacher of record) and early childhood educators who meet state credential rules. They must work most of the year and have met these requirements for at least one year before the tax year.
• What changes: A $1,000 credit for all eligible educators, plus more if employed at a qualifying school. Qualifying schools include Title I–eligible public schools, Bureau of Indian Education schools, and early childhood programs serving children eligible for child care assistance or the Child and Adult Care Food Program .
• When: The dollar amounts are set to rise with inflation for tax years after 2026.