US HB7157

Excludes up to $50,000 of wages from federal gross income for K-12 public school teachers, instructors, counselors, and aides who work at least 900 hours during a school year

Increases the exclusion to $65,000 for educators at high-poverty schools (75%+ students eligible for free/reduced lunch), rural schools, or those teaching special education or STEM subjects

Applies only to public elementary and secondary schools, including charter schools, that operate at public expense without tuition charges

Requires the Secretary to establish a process for schools to provide verification statements to eligible educators and the IRS

Takes effect for taxable years beginning after December 31, 2025