[Congressional Record Volume 171, Number 77 (Thursday, May 8, 2025)]
[Senate]
[Pages S2839-S2841]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. DURBIN (for himself and Ms. Smith):
S. 1676. A bill to amend the Internal Revenue Code of 1986 to address
the teacher and school leader shortage in early childhood, elementary,
and secondary education, and for other purposes; to the Committee on
Finance.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1676
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Retaining Educators Takes
Added Investment Now Act'' or the ``RETAIN Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to create a refundable tax
credit for early childhood educators, teachers, early
childhood education program directors, school leaders, and
school-based mental health services providers in early
childhood, elementary, and secondary education settings that
rewards retention based on the time spent serving high-need
students.
[[Page S2840]]
SEC. 3. FINDINGS.
Congress finds the following:
(1) The shortage of experienced, qualified early childhood
educators and elementary school and secondary school teachers
is a national problem that compromises the academic outcomes
and long-term success of students.
(2) The shortage is the result of many factors including
low pay, frequent turnover in school leadership, poor
teaching conditions, and inadequate teacher supports.
(3) The shortage is worse in high-poverty areas where the
factors contributing to the shortage are particularly acute
and have an increased negative impact on teachers of color
remaining in the field.
(4) A child's access to high-quality early childhood
education is critical to supporting positive outcomes, and
early childhood educators--
(A) play an important role in setting the foundation for
future learning, and
(B) promote the development of vital skills, habits, and
mindsets that children need to be successful in school and in
life.
(5) In 2024, the national median pay of early childhood
educators was a mere $37,120, with many early childhood
educators relying on government assistance programs such as
Medicaid, the supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.), or the temporary assistance for needy
families program established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), and struggling
to provide for their own families.
(6) Studies have demonstrated that well-qualified,
experienced teachers are the single most important school-
based element contributing to a child's academic achievement
and success.
(7) In the 2023-2024 academic year, the average teacher
salary in public elementary schools and secondary schools was
only $72,030. When adjusted for inflation, the average
teacher salary has declined by 5 percent over the past
decade.
(8) On average, public elementary school and secondary
school teachers were paid 23.5 percent less than other
college graduates working in non-teaching fields, and many
teachers struggle with large amounts of student loan debt.
(9) In the 2023-2024 academic year, the average teacher
salary for a first-year teacher in a public elementary school
or secondary school was $46,526.
(10) An experienced, well-qualified education workforce
must also be reflective of the diversity of the student body
across race, ethnicity, and disability.
(11) Higher pay for teachers can result in a more diverse
teacher workforce, and minority students often perform better
on standardized tests, have improved attendance, and are
suspended less frequently when they have at least one same-
race teacher.
(12) Experienced, well-qualified school leaders and school-
based mental health service providers are essential for
providing strong educational opportunities and services for
students and promoting teacher retention through improved
professional supports and teaching conditions.
(13) In 2024, the teaching profession experienced the
lowest levels of employment in 50 years.
SEC. 4. REFUNDABLE TAX CREDIT FOR TEACHER AND SCHOOL LEADER
RETENTION.
(a) In General.--Subpart C of part IV of subchapter A of
chapter 1 of subtitle A of the Internal Revenue Code of 1986
is amended by inserting after section 36B the following new
section:
``SEC. 36C. TEACHER AND SCHOOL LEADER RETENTION CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual who is
employed in a position described in paragraph (2) during a
school year ending with or within the taxable year, there
shall be allowed as a credit against the tax imposed by this
subtitle for the taxable year an amount equal to the
applicable amount (as determined under subsection (b)).
``(2) Eligible positions.--The positions described in this
paragraph shall consist of the following:
``(A) An eligible early childhood educator.
``(B) An eligible early childhood education program
director.
``(C) An eligible early childhood education provider.
``(D) An eligible teacher.
``(E) An eligible paraprofessional.
``(F) An eligible school-based mental health services
provider.
``(G) An eligible school leader.
``(b) Applicable Amount.--
``(1) In general.--For purposes of this section, the
applicable amount shall be an amount determined based on the
number of school years for which the individual has been
continuously employed in any position described in subsection
(a)(2), as follows:
``(A) Subject to paragraph (2), for the first year of
employment, $5,800.
``(B) For the second continuous year of employment, $5,800.
``(C) For the third and fourth continuous year of
employment, $7,000.
``(D) For the fifth, sixth, seventh, eighth, and ninth
continuous year of employment, $8,700.
``(E) For the tenth continuous year of employment, $11,600.
``(F) For the eleventh, twelfth, thirteenth, fourteenth,
and fifteenth continuous year of employment, $8,700.
``(G) For the sixteenth continuous year of employment,
$7,000.
``(H) For the seventeenth, eighteenth, nineteenth, and
twentieth continuous year of employment, $5,800.
``(2) First year.--For purposes of the first year of
employment ending with or within a taxable year, an
individual must have been so employed for a period of not
less than 4 months before the first day of such taxable year.
``(3) Limitation based on total number of school years.--In
the case of any individual who has been employed in any
position described in subsection (a)(2) for a total of more
than 20 school years, the applicable amount shall be reduced
to zero.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2026, each of the dollar amounts in
subsection (b)(1) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting
`calendar year 2025' for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(2) Rounding.--If any increase determined under paragraph
(1) is not a multiple of $100, such increase shall be rounded
to the nearest multiple of $100.
``(d) Supplementing, Not Supplanting, State and Local
Education Funds.--
``(1) In general.--A State educational agency or local
educational agency shall not reduce or adjust any
compensation, or any assistance provided through a loan
forgiveness program, to an employee of the State educational
agency or local educational agency who serves in any position
described in subsection (a)(2) due to the individual's
eligibility for the credit under this section.
``(2) Methodology.--Upon request by the Secretary of
Education, a State educational agency or local educational
agency shall reasonably demonstrate that the methodology used
to allocate amounts for compensation and for loan forgiveness
to the employees described in paragraph (1) at qualifying
schools or qualifying early childhood education programs
ensures that employees at each qualifying school or
qualifying early childhood education program in the State or
served by the local educational agency, respectively, receive
the same amount of State or local funds for compensation and
loan forgiveness that the qualifying school or qualifying
early childhood education program would receive if the credit
under this section had not been enacted.
``(e) Information Sharing.--The Secretary of Education and
the Secretary of Health and Human Services shall provide the
Secretary with such information as is necessary for purposes
of determining whether an early childhood education program
or an elementary school or secondary school satisfies the
requirements for a qualifying early childhood education
program or a qualifying school, respectively.
``(f) Definitions.--For purposes of this section--
``(1) ESEA definitions.--The terms `elementary school',
`local educational agency', `secondary school', `State
educational agency', and `educational service agency' have
the meanings given the terms in section 8101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
``(2) Eligible early childhood education program
director.--The term `eligible early childhood education
program director' means an employee or officer of a
qualifying early childhood education program who is
responsible for the daily instructional leadership and
managerial operations of such program.
``(3) Eligible early childhood education provider.--The
term `eligible early childhood education provider' means an
individual--
``(A) who--
``(i) has an associate's degree or higher degree in early
childhood education or a related field, or
``(ii) is enrolled during the taxable year in a program
leading to such an associate's or higher degree and is making
satisfactory progress toward such degree, and
``(B) who is responsible for the daily instructional
leadership and managerial operations of a qualifying early
childhood education program in a home-based setting.
``(4) Eligible early childhood educator.--The term
`eligible early childhood educator' means an individual--
``(A) who--
``(i) has an associate's degree or higher degree in early
childhood education or a related field, or
``(ii) is enrolled during the taxable year in a program
leading to such an associate's or higher degree and is making
satisfactory progress toward such degree,
``(B) who has credentials or a license under State law for
early childhood education, as applicable, and
``(C) whose primary responsibility is for the learning and
development of children in a qualifying early childhood
education program during the taxable year.
``(5) Eligible paraprofessional.--The term `eligible
paraprofessional' means an individual--
``(A) who is a paraprofessional, as defined in section 3201
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7011),
[[Page S2841]]
``(B) who meets the applicable State professional standards
and qualifications pursuant to section 1111(g)(2)(M) of such
Act (20 U.S.C. 6311(g)(2)(M)),
``(C) whose primary responsibilities involve working or
assisting in a classroom setting, and
``(D) who is employed in a qualifying school or a
qualifying early childhood education program.
``(6) Eligible school-based mental health services
provider.--The term `eligible school-based mental health
services provider' means an individual--
``(A) described in section 4102(6) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7112(6)), and
``(B) who is employed in a qualifying school or a
qualifying early childhood education program.
``(7) Eligible school leader.--The term `eligible school
leader' means a principal, assistant principal, or other
individual who is--
``(A) an employee or officer of a qualifying school, and
``(B) responsible for the daily instructional leadership
and managerial operations in the qualifying school.
``(8) Eligible teacher.--The term `eligible teacher' means
an individual who--
``(A) is an elementary school or secondary school teacher
who, as determined by the State or local educational agency,
is a teacher of record who provides direct classroom teaching
(or classroom-type teaching in a nonclassroom setting) to
students in a qualifying school, and
``(B)(i) meets applicable State certification and licensure
requirements, including any requirements for certification
obtained through alternative routes to certification, in the
State in which such school is located and in the subject area
in which the individual is the teacher of record, or
``(ii) is enrolled during the taxable year in a program
leading to State certification and licensure as described in
clause (i) and is making satisfactory progress toward such
certification and licensure requirements.
``(9) Qualifying early childhood education program.--
``(A) In general.--The term `qualifying early childhood
education program' means an early childhood education
program, as defined in section 103 of the Higher Education
Act of 1965 (20 U.S.C. 1003), that, regardless of setting--
``(i) serves children who receive services for which
financial assistance is provided in accordance with the Child
Care and Development Block Grant Act of 1990 (42 U.S.C. 9857
et seq.), the Head Start Act (42 U.S.C. 9831 et seq.), or the
child and adult care food program established under section
17 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1766), and
``(ii) participates in a State tiered and transparent
system for measuring program quality.
``(B) Special rule.--Notwithstanding subparagraph (A), an
early childhood education program that does not satisfy the
requirements of subparagraph (A)(ii) shall be deemed to be a
qualifying early childhood education program until September
30, 2025, if the program--
``(i) satisfies all requirements of subparagraph (A) except
for clause (ii) of such subparagraph, and
``(ii)(I) meets the Head Start program performance
standards described in section 641A(a) of the Head Start Act
(42 U.S.C. 9836a(a)), if applicable, or
``(II) is accredited by a national accreditor of early
learning programs as of the date of enactment of the
Retaining Educators Takes Added Investment Now Act.
``(10) Qualifying school.--The term `qualifying school'
means--
``(A) a public elementary school or secondary school that--
``(i) is in the school district of a local educational
agency that is eligible for assistance under part A of title
I of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311 et seq.), or
``(ii) is served or operated by an educational service
agency that is eligible for such assistance, or
``(B) an elementary school or secondary school that is
funded by the Bureau of Indian Education and that is in the
school district of a local educational agency that is
eligible for such assistance.''.
(b) W-2 Reporting of Continuous Employment for Certain
Positions at Qualifying Early Childhood Education Programs or
Qualifying Schools.--Section 6051(a) of the Internal Revenue
Code of 1986 is amended by striking ``and'' at the end of
paragraph (16), by striking the period at the end of
paragraph (17) and inserting ``, and'', and by inserting
after paragraph (17) the following new paragraph:
``(18) in the case of an employee who is employed in a
position described in subsection (a)(2) of section 36C, the
number of school years for which such employee has been
continuously employed in any such position.''.
(c) Conforming Amendments.--
(1) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of subtitle A of the Internal
Revenue Code of 1986 is amended by inserting after the item
relating to section 36B the following:
``Sec. 36C. Teacher and school leader retention credit.''.
(2) Section 6211(b)(4)(A) of such Code is amended by
inserting ``36C,'' after ``36B,''.
(3) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``36C,'' after ``36B,''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2025.
SEC. 5. DEVELOPING INTERAGENCY DATA SERIES.
The Secretary of Labor, in coordination with the Secretary
of Treasury, the Secretary of Education, and the Secretary of
Health and Human Services, shall--
(1) develop and publish on the internet website of the
Bureau of Labor Statistics a data series that captures--
(A) the average base salary of teachers in elementary
schools and secondary schools, disaggregated by--
(i) employment in public elementary schools and secondary
schools that receive assistance under part A of title I of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311 et seq.),
(ii) employment in public elementary schools and secondary
schools that do not receive such assistance, and
(iii) geographic region, and
(B) the average base salary of early childhood educators,
disaggregated by highest level of degree attained, and
(2) update the data series under paragraph (1) on an annual
basis.
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