H.R. 1054: Educators Expense Deduction Modernization Act of 2025

H.R. 1054 raises the cap on the educator expense deduction. Eligible educators can currently write off up to $300 a year — the 2025 inflation-adjusted amount — for supplies they buy themselves. The bill lifts that to $1,000.

This is an above-the-line deduction, so you can claim it even if you don't itemize. It comes straight off your income before your taxable amount is figured, which means every eligible educator can use it.

It isn't only for classroom teachers. The deduction covers K-12 teachers, instructors, counselors, principals, and aides who work at least 900 hours in a school year, and it applies to both classroom supplies and certain professional development courses.

The bill also rebuilds the inflation formula. It moves the indexing base from 2015 to 2026 and the reference figure from $250 to $1,000, so future cost-of-living bumps start from the new, higher number. In plain terms, Congress isn't just raising the cap once — it's resetting the benchmark so the cap keeps pace going forward.

The change would apply to tax years beginning in 2026. It's a tax deduction, not a grant or a check from a federal agency, so the benefit shows up when you file.