Sponsor
Cleo Fields
Representative · D-LA
Representative · D-LA
The bill increases many K–12 educators' take-home pay—especially those in high-need and rural roles—through a sizable tax exclusion, at the cost of reduced federal revenue and added administrative and eligibility complexity for schools and some teachers.
K–12 public school educators can exclude up to $50,000 of wages (or $65,000 if they qualify) from federal taxable income, lowering their federal tax bills.
Educators in high-need schools (≥75% FRL), rural schools, and those in special education or STEM roles are eligible for the larger $65,000 exclusion, increasing take-home pay for educators serving disadvantaged or underserved communities.
The targeted tax preference may help recruit and retain teachers in rural, high-poverty, STEM, and special education positions by effectively increasing compensation for those roles.
The exclusion reduces federal tax revenue, which could increase deficits or force cuts to other federal programs unless offsets are provided.
The school attestation requirement creates administrative burden for schools (verifying 900 hours and qualifying conditions), requiring staff time and new processes.
Lower-income teachers who owe little or no federal income tax may gain little benefit from the exclusion, limiting the measure's progressivity.
Based on analysis of 2 sections of legislative text.
Excludes up to $50,000 of wages (up to $65,000 for certain educators) from gross income for qualifying eligible educators, reducing their federal income tax liability.
Official title: To amend the Internal Revenue Code of 1986 to exclude from gross income up to the first $50,000 wages from employment as a K-12 public school teacher.
Introduced January 20, 2026 by Cleo Fields · Last progress January 20, 2026
Excludes up to $50,000 of wages (up to $65,000 for certain educators) from gross income for "eligible educators," reducing federal income tax for qualifying public elementary and secondary school teachers and staff. The Treasury must issue rules and implement a school-attestation process to verify eligibility. Effective for taxable years beginning after December 31, 2025. The change creates a new Internal Revenue Code provision that defines eligible educators, wages, rural area status, and public elementary/secondary schools, and adds a conforming table entry to the Code.