RAISE Act of 2025

The RAISE Act of 2025 creates a new tax credit for teachers and early childhood educators, with a base of $1,000 plus additional amounts based on school poverty rates. Teachers working in schools where more than 39% of students live in poverty can receive up to $14,000 more in tax credits, calculated based on how much a school's poverty rate exceeds 39%. The bill also increases the deduction for teachers' classroom expenses from $250 to $500 and requires schools to maintain teacher pay levels to receive certain federal funds. This directly affects public school teachers, early childhood educators, and schools serving communities with high poverty rates.