RETAIN Act

The RETAIN Act creates a refundable tax credit for early childhood educators, teachers, school leaders, and mental health providers who work in high-poverty schools for multiple years. It provides cash payments (ranging from $5,800 to $11,600 annually) based on continuous service, with higher amounts for longer tenure (e.g., $11,600 after 10 years). The credit directly affects educators in qualifying schools - those serving high-poverty students, as defined by Title I funding eligibility - and is designed to reduce turnover by rewarding retention. Schools cannot reduce other compensation for staff receiving this credit, and the credit applies to all eligible roles in public elementary/secondary schools or qualifying early childhood programs.