House Passes Panetta’s Bipartisan ‘Supporting Early-Childhood Educators’ Deductions Act’

Taxes | April 29, 2026

House Passes Panetta’s Bipartisan ‘Supporting Early-Childhood Educators’ Deductions Act’

Introduced by Rep. Jimmy Panetta (D-CA), the SEED Act would allow early childhood educators to take a tax deduction for classroom supplies, educational materials and professional development opportunities.

By James Herrera
Monterey Daily Herald
(TNS)

MONTEREY, CA — The bipartisan, bicameral Supporting Early-Childhood Educators’ Deductions Act, introduced by Rep. Jimmy Panetta (D-CA), was passed unanimously in the House and is now on its way to the U.S. Senate for consideration.

About a month ago, the SEED Act was unanimously passed out of the House Ways and Means Committee, the first Democrat-led standalone bill to receive a mark-up in the committee. Now the legislation that would allow early childhood educators to take a deduction for classroom supplies, educational materials and professional development opportunities, moves closer to becoming law.

“Early childhood educators often reach deep into their own pockets to cover the cost of classroom materials for their students,” said Panetta in a press release. “The SEED Act would allow pre-K teachers to claim the same tax deduction for those costs that is already available to those who teach K-12. My bipartisan legislation would ensure dedicated pre-K educators have the tools they need to help our children succeed. The House passage of the SEED Act is an important step, and I look forward to the work ahead to ensure that our bipartisan, bicameral legislation is signed into law.”

According to First Five Years Fund, a Washington D.C.-based nonprofit, early childhood educators regularly spend their own money on classroom supplies. It found that educators spend an average of $860 a year of their own money on supplies for their students. More than 90% of early childhood educators report paying out-of-pocket for materials like books, learning tools and supplies for the children in their care.

First Five Years Fund’s stated goal is to ensure that all children, especially those from low-income families have access to early childhood opportunities that support their healthy development and help each child reach their full potential.

Under current law, K-12 teachers are able to take a tax deduction for out-of-pocket costs, but pre-K early childhood educators cannot deduct those out-of-pocket expenses. The SEED Act would correct this and provide tax relief to the teachers.

The SEED Act would expand the above-the-line $300 educator expense deduction, established for K-12 teachers in 2002, to also include pre-K and early childhood educators. This deduction helps offset the hundreds of dollars teachers spend out of their own pockets each year on classroom supplies, books and learning materials.

An “above-the-line” deduction means educators can claim the deduction whether or not they itemize their tax deductions of up to $350 for classroom supplies, educational materials and professional development opportunities, according to First Five Years Fund.

“Teaching is the ultimate act of optimism and safeguard of our democracy. America’s early childhood educators pour their hearts into their work, and far too often, their own money, just to do their jobs,” said Rep. Maggie Goodlander (D-NH) in the release. “These educators deserve the same tax deduction other teachers get, and our commonsense, bipartisan bill will make that happen. Time to right this wrong and get our bill signed into law.”

The SEED Act is supported by a broad coalition of education and child advocacy organizations, including the Center for American Progress, the American Federation of Teachers, Teach For America, the First Five Years Fund and Trying Together.

The Supporting Early-Childhood Educators’ Deductions Act was co-lead by Reps. Goodlander, Brian Fitzpatrick (R-PA) and David Valadao (R-CA).

Senators Michael Bennet (D-CO) and Susan Collins (R-ME) have introduced companion legislation in the U.S. Senate.

Photo caption: Rep. Jimmy Panetta, D-CA (Office of Rep. Jimmy Panetta)

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©2026 MediaNews Group Inc. Visit at montereyherald.com. Distributed by Tribune Content Agency LLC.

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