Bill > S1676

This bill introduces the Retaining Educators Takes Added Investment Now Act (RETAIN Act), which aims to address the national teacher and school leader shortage by creating a refundable tax credit that rewards educators for their continued service in high-need educational settings. The tax credit provides increasing financial incentives for educators who remain in their positions, ranging from $5,800 in the first two years to $11,600 in the tenth year of continuous employment, with the goal of retaining experienced teachers, early childhood educators, school leaders, and mental health service providers. The bill recognizes the challenges facing educators, including low pay (noting that the national median pay for early childhood educators was $37,120 in 2024 and the average teacher salary was $72,030), high turnover rates, and difficult working conditions, particularly in high-poverty areas. To be eligible, educators must work in qualifying schools or early childhood education programs, hold appropriate credentials or be working towards them, and meet specific professional standards. The bill also includes provisions to ensure that this tax credit supplements rather than replaces existing compensation and requires agencies to maintain current funding levels. Additionally, the bill mandates the development of a comprehensive data series to track teacher and early childhood educator salaries across different regions and educational settings, which will help inform future policy decisions about educator compensation and retention.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1676/all-info