Statement on Congressional Passage of the SEED Act, Including Early Educators in the Educator Expense Deduction

OMAHA, Neb.—Walter Gilliam, executive director, Buffett Early Childhood Institute at the University of Nebraska, released the following statement after the bipartisan Supporting Early-Childhood Educators’ Deductions (SEED) Act cleared Congress on Sept. 16, following a final House vote on the legislation. The bill will allow early educators to join K–12 teachers in deducting up to $350 in unreimbursed out-of-pocket expenses they spend on classroom materials, supplies, and professional development.

“In March 2025, I made a clear, data-backed recommendation that the 119th Congress amend the Internal Revenue Service Code of 1986 to include early educators in the educator expense deduction. Congress has now acted on this recommendation, and after passage in both houses, the SEED Act is now set to become law.

“Our research on this issue showed that 91% of early educators routinely spend their own money on classroom materials—despite earning significantly less than their K–12 counterparts.

"For 24 years, early educators have been excluded from the Educator Expense Deduction, which allows K–12 teachers to deduct unreimbursed classroom and professional development expenses from their federal taxable income. This bill levels the playing field among educators, regardless of the ages or grades they teach, and corrects a longstanding discrepancy.

"This tax reform will provide early childhood educators with a modest tax break while, more importantly, recognizing the value of the essential work they do on behalf of our youngest learners.

"Child care shortages affect families and employers, and bipartisan solutions like this legislation provide a measure of support for our nation's early childhood workforce and can help keep them in the field.

"The Buffett Institute is proud to contribute early childhood research and policy expertise to this work, and we are grateful to Congress—especially its champions in the House and Senate, Representatives Brian Fitzpatrick (PA-1) and Jimmy Panetta (CA-19), and Senators Michael Bennet (CO) and Senator Susan Collins (ME)—for taking action."