H.R. 1611 — RAISE Act of 2025

This section establishes a new refundable tax credit under new Internal Revenue Code section 36C for eligible educators (i.e., elementary or secondary teachers providing direct classroom teaching for at least 75% of full-time hours in public schools, meeting state certification requirements, and having done so for at least one year prior; or early childhood educators with specified credentials, state requirements, and primary responsibility for children's learning for at least 75% of full-time hours for at least one year prior). The credit equals $1,000, plus—for educators at qualifying schools—an applicable amount of up to $14,000 ($9,000 for early childhood educators without a bachelor's degree) based on the school's student poverty ratio exceeding 39 percent (scaled proportionally to 36 percentage points). Qualifying schools include public elementary or secondary schools (or those served by eligible educational service agencies) receiving Title I-A aid under the Elementary and Secondary Education Act; Bureau of Indian Education-funded schools; and early childhood programs serving children eligible for Child Care and Development Block Grant or child care food program services, with student poverty ratios determined using ESEA poverty measures or specified low-income eligibility criteria.

This section modifies the above-the-line deduction for educator expenses under IRC §62(a)(2)(D)—which allows eligible K-12 educators working at least 900 hours in a school year to deduct qualified out-of-pocket classroom expenses (e.g., books, supplies, computer equipment)—by (1) increasing the maximum deduction amount to $500 (from $250); (2) expanding eligibility to early childhood educators, as defined in HEA §200 (20 U.S.C. §1021), who work at least 1,020 hours per year in an early childhood education program, as defined in HEA §103 (20 U.S.C. §1003); and (3) revising the inflation adjustment mechanism in IRC §62(d)(3) to apply to each dollar amount for taxable years beginning after 2025, with a base year of 2025 (from the $250 amount only, after 2014, with a base year of 2014). The changes apply to amounts paid or incurred in taxable years beginning after the date of enactment.

This section revises funding for part A of Title II of the ESEA (20 U.S.C. 6603(a))—state grants to improve teacher and principal quality through professional development, recruitment, and retention—by striking the prior authorization of $2,295,830,000 for FY2017-FY2020 and instead mandating appropriations of $5,200,000,000 for FY2026, with amounts for FY2027 and succeeding years increased annually by the percentage change in the CPI for All Urban Consumers. It further requires the Secretary, after reservations under section 2101(a), to reserve 20% of appropriations exceeding $2,200,000,000 (i.e., $600 million for FY2026; the "teacher salary incentive reservation") for grants allotted to eligible LEAs (those that maintained or increased teacher salary schedules in the prior year) based on their share of children counted under section 1124(c) (Title I concentration grant formula children), upon application. Grant recipients may use funds for (1) specified teacher or principal preparation programs under the Higher Education Act; (2) certifications or credentials in high-need fields or advanced credentials (e.g., National Board for Professional Teaching Standards); (3) teacher leadership programs; (4) induction or mentoring for new educators; (5) research-based professional development; or (6) other Secretary-approved activities to promote, strengthen, diversify, or advance the educator workforce. Funds must supplement, not supplant, state teacher pay efforts.