Education (Student Financial Aid)

The RETAIN Act creates a refundable tax credit for educators in high-need schools, including early childhood educators, teachers, school leaders, and school-based mental health providers. The credit amount increases with years of continuous service, ranging from $5,800 for the first two years to $11,600 after 10 years of service. It is refundable (meaning it pays out even if no income tax is owed) and applies to those working in qualifying schools serving high-poverty areas or meeting Title I eligibility criteria. The credit aims to address retention challenges by rewarding long-term service in under-resourced educational settings.

HR 5351, the NSF AI Education Act of 2025, creates new funding mechanisms to expand artificial intelligence education. It authorizes scholarships and fellowships covering tuition, fees, and stipends for undergraduate and graduate students in AI-related fields, with priority for programs teaching AI in K-12 schools, advanced manufacturing, and agriculture. The bill also establishes up to eight regional "Centers of AI Excellence" at community colleges and career schools to develop AI curricula, build industry partnerships, and create student job pathways. Additionally, it funds research grants to develop K-12 AI teaching materials and supports professional development for educators and industry professionals to integrate AI into classrooms.

This bill would terminate the U.S. Department of Education by October 1, 2026, and transfer its education-related functions to other federal agencies. It would move K-12 education programs to the Office of Education within Health and Human Services, student loans to the Treasury Department, vocational education to the Labor Department, and civil rights enforcement to the Justice Department. The bill also specifies that certain education programs would be terminated after October 1, 2036, and includes provisions to ensure continuity of existing grants, contracts, and legal proceedings during the transition. It directly affects federal education programs, agencies handling education funding, and recipients of education-related grants and services.