HR7536119th CongressWALLET

GRADUATE Act

Sponsored By: Representative Goldman (NY)

Introduced

Summary

Expands the federal tax deduction for education loan payments to include principal and raise the maximum cap. It would broaden who can deduct student loan payments and add an income-based phase-out.

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  • Families with dependents would get a larger deduction. The new maximum is $10,000 plus $500 per dependent.
  • Borrowers could deduct payments made toward both principal and interest on qualified education loans instead of interest alone.
  • Higher-income filers would see the deduction reduced based on a defined modified adjusted gross income measure. The phase-out begins above $125,000 for single filers and $250,000 for joint filers.
  • The deduction is treated as an above-the-line adjustment under section 62(a)(17) and would apply to tax years beginning in 2026 and later.

Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Bigger student loan deduction for borrowers

If enacted, you would be able to deduct payments made that year on qualified student loans, including principal and interest. The deduction would be capped at $10,000 plus $500 per dependent. The deduction would phase out for modified AGI above $125,000 (single) and $250,000 (joint). The phase-out range is $25,000 for singles and $50,000 for joint filers, reducing the deduction proportionally to zero. The bill would define modified AGI for this rule, treat the deduction as an above-the-line adjustment, and apply to tax years beginning after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Goldman (NY)

NY • D

Cosponsors

  • Jacobs

    CA • D

    Sponsored 2/12/2026

  • Garcia (CA)

    CA • D

    Sponsored 2/12/2026

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 2/12/2026

  • Figures

    AL • D

    Sponsored 2/12/2026

  • Pingree

    ME • D

    Sponsored 2/12/2026

  • Garcia (IL)

    IL • D

    Sponsored 2/20/2026

  • Green, Al (TX)

    TX • D

    Sponsored 2/23/2026

Roll Call Votes

No roll call votes available for this bill.

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