Creates a new refundable teacher tax credit worth at least $1,000 for eligible educators and larger amounts for teachers at high-poverty schools, raises the above-the-line classroom expense deduction from $50 to $500 and expands that deduction to some early childhood educators, and provides mandatory annual federal grant funding (starting FY2026) with a set-aside for local education agencies that maintained or increased teacher salary schedules. The bill also requires Education-Treasury data sharing to identify eligible schools, prevents states/agencies and employers from offsetting pay/benefits because of the tax credit, and indexes amounts for inflation.