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RETAIN Act

USA119th CongressS-1676| Senate 
| Updated: 5/8/2025
Richard J. Durbin

Richard J. Durbin

Democratic Senator

Illinois

Cosponsors (1)
Tina Smith (Democratic)

Finance Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
The Retaining Educators Takes Added Investment Now (RETAIN) Act aims to address the critical shortage of educators and school leaders in early childhood, elementary, and secondary education. It proposes a new refundable tax credit for eligible professionals, including early childhood educators, teachers, paraprofessionals, school leaders, and school-based mental health service providers. The primary purpose of this credit is to reward retention and encourage continued service, particularly in high-need educational environments. The tax credit amount is structured to increase with an individual's continuous years of employment in an eligible position. For instance, it starts at $5,800 for the first two years, increases to $7,000 for years three and four, and reaches a peak of $11,600 in the tenth year of continuous service. After the tenth year, the credit gradually decreases, becoming zero after 20 years of employment, and all dollar amounts are subject to inflation adjustment after 2026. To qualify, professionals must be employed in specific roles within "qualifying schools" or "qualifying early childhood education programs," which generally serve high-poverty areas or receive federal assistance. The bill includes a "supplementing, not supplanting" provision, prohibiting State and local educational agencies from reducing existing compensation or loan forgiveness due to an employee's eligibility for this credit. Furthermore, these agencies must demonstrate that the credit does not lead to a reduction in local funding for compensation. Beyond the tax credit, the RETAIN Act also directs the Secretary of Labor, in coordination with the Secretaries of Treasury, Education, and Health and Human Services, to establish and annually update an interagency data series. This series will capture and publish average base salaries for teachers, disaggregated by Title I status and geographic region, and for early childhood educators, disaggregated by their highest degree attained. This provision aims to provide greater transparency and insight into educator compensation trends.
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Timeline

Bill from Previous Congress

S 116-4314
RETAIN Act

Bill from Previous Congress

S 117-686
RETAIN Act

Bill from Previous Congress

S 118-1567
RETAIN Act
May 8, 2025

Latest Companion Bill Action

HR 119-3308
Introduced in House
May 8, 2025
Introduced in Senate
May 8, 2025
Read twice and referred to the Committee on Finance. (text: CR S2839-2841)
  • Bill from Previous Congress

    S 116-4314
    RETAIN Act


  • Bill from Previous Congress

    S 117-686
    RETAIN Act


  • Bill from Previous Congress

    S 118-1567
    RETAIN Act


  • May 8, 2025

    Latest Companion Bill Action

    HR 119-3308
    Introduced in House


  • May 8, 2025
    Introduced in Senate


  • May 8, 2025
    Read twice and referred to the Committee on Finance. (text: CR S2839-2841)

Taxation

Related Bills

  • HR 119-3308: RETAIN Act

RETAIN Act

USA119th CongressS-1676| Senate 
| Updated: 5/8/2025
The Retaining Educators Takes Added Investment Now (RETAIN) Act aims to address the critical shortage of educators and school leaders in early childhood, elementary, and secondary education. It proposes a new refundable tax credit for eligible professionals, including early childhood educators, teachers, paraprofessionals, school leaders, and school-based mental health service providers. The primary purpose of this credit is to reward retention and encourage continued service, particularly in high-need educational environments. The tax credit amount is structured to increase with an individual's continuous years of employment in an eligible position. For instance, it starts at $5,800 for the first two years, increases to $7,000 for years three and four, and reaches a peak of $11,600 in the tenth year of continuous service. After the tenth year, the credit gradually decreases, becoming zero after 20 years of employment, and all dollar amounts are subject to inflation adjustment after 2026. To qualify, professionals must be employed in specific roles within "qualifying schools" or "qualifying early childhood education programs," which generally serve high-poverty areas or receive federal assistance. The bill includes a "supplementing, not supplanting" provision, prohibiting State and local educational agencies from reducing existing compensation or loan forgiveness due to an employee's eligibility for this credit. Furthermore, these agencies must demonstrate that the credit does not lead to a reduction in local funding for compensation. Beyond the tax credit, the RETAIN Act also directs the Secretary of Labor, in coordination with the Secretaries of Treasury, Education, and Health and Human Services, to establish and annually update an interagency data series. This series will capture and publish average base salaries for teachers, disaggregated by Title I status and geographic region, and for early childhood educators, disaggregated by their highest degree attained. This provision aims to provide greater transparency and insight into educator compensation trends.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

S 116-4314
RETAIN Act

Bill from Previous Congress

S 117-686
RETAIN Act

Bill from Previous Congress

S 118-1567
RETAIN Act
May 8, 2025

Latest Companion Bill Action

HR 119-3308
Introduced in House
May 8, 2025
Introduced in Senate
May 8, 2025
Read twice and referred to the Committee on Finance. (text: CR S2839-2841)
  • Bill from Previous Congress

    S 116-4314
    RETAIN Act


  • Bill from Previous Congress

    S 117-686
    RETAIN Act


  • Bill from Previous Congress

    S 118-1567
    RETAIN Act


  • May 8, 2025

    Latest Companion Bill Action

    HR 119-3308
    Introduced in House


  • May 8, 2025
    Introduced in Senate


  • May 8, 2025
    Read twice and referred to the Committee on Finance. (text: CR S2839-2841)
Richard J. Durbin

Richard J. Durbin

Democratic Senator

Illinois

Cosponsors (1)
Tina Smith (Democratic)

Finance Committee

Taxation

Related Bills

  • HR 119-3308: RETAIN Act
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted