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To amend the Internal Revenue Code of 1986 to expand the deduction for student loan interest to include payments toward principal, and to increase the value of the deduction.
Summary
This bill would expand the student loan tax deduction to include both principal and interest payments on qualified education loans, rather than limiting it to interest only. The maximum deduction would increase to $10,000 per year, plus $500 for each dependent, significantly higher than the current $2,500 limit. Income thresholds for the deduction would rise from $65,000/$130,000 to $125,000/$250,000 for single filers and joint filers respectively, allowing more taxpayers to claim the full deduction. The phase-out range for higher-income earners would also expand, making the deduction available to a broader income range. These changes would take effect for tax years beginning after December 31, 2025.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
8 cosponsors
- Del. Norton, Eleanor Holmes [D-DC-At Large] (D-DC)
- Rep. Figures, Shomari [D-AL-2] (D-AL)
- Rep. García, Jesús G. "Chuy" [D-IL-4] (D-IL)
- Rep. Garcia, Robert [D-CA-42] (D-CA)
- Rep. Green, Al [D-TX-9] (D-TX)
- Rep. Jacobs, Sara [D-CA-51] (D-CA)
- Rep. Pingree, Chellie [D-ME-1] (D-ME)
- Rep. Schakowsky, Janice D. [D-IL-9] (D-IL)
Actions (2)
- Feb 12, 2026 Referred to the House Committee on Ways and Means. · house
- Feb 12, 2026 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE HOUSE OF REPRESENTATIVES
February 12, 2026
Mr. Goldman of New York (for himself, Ms. Jacobs, Mr. Garcia of California, Ms. Norton, Mr. Figures, and Ms. Pingree) introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to expand the deduction for student loan interest to include payments toward principal, and to increase the value of the deduction.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Generating Relief for Academic Debt Using Assisted Tax Efficiency Act” or the “GRADUATE Act”.
SEC. 2. EDUCATION LOAN DEDUCTION.
(a) In General.—Section 221 of the Internal Revenue Code of 1986 is amended—
(1) in the heading, by striking “interest on education loans” and inserting “education loans”,
(2) by amending subsection (a) to read as follows:
“(a) Allowance of Deduction.—In the case of an individual, there shall be allowed as a deduction for the taxable year an amount equal to the amounts paid by the taxpayer during the taxable year on any qualified education loan.”,
(3) by amending subsection (b) to read as follows:
“(b) Maximum Deduction.—
“(1) In general.—Except as provided in paragraph (2), the deduction allowed by subsection (a) for the taxable year shall not exceed an amount equal to the sum of—
“(A) $10,000, plus
“(B) $500 multiplied by the number of dependents of the taxpayer for such taxable year.
“(2) Limitation based on modified adjusted gross income.—
“(A) In general.—The amount which would (but for this paragraph) be allowable as a deduction under this section shall be reduced (but not below zero) by the amount determined under subparagraph (B).
“(B) Amount of reduction.—The amount determined under this subparagraph is the amount which bears the same ratio to the amount which would be so taken into account as—
“(i) the excess of—
“(I) the taxpayer’s modified adjusted gross income for such taxable year, over
“(II) $125,000 ($250,000 in the case of a joint return), bears to
“(ii) $25,000 ($50,000 in the case of a joint return).
“(C) Modified adjusted gross income.—The term ‘modified adjusted gross income’ means adjusted gross income determined—
“(i) without regard to this section and sections 85(c), 911, 931, and 933, and
“(ii) after application of sections 86, 135, 137, 219, and 469.”, and
(4) in subsection (f)(1)—
(A) by striking “after 2002” and inserting “after 2026”,
(B) by striking “$50,000 and $100,000” and inserting “$125,000 and $250,000”, and
(C) in subparagraph (B), by striking “calendar year 2001” and inserting “calendar year 2025”.
(b) Conforming Amendment.—Section 62(a)(17) of such Code is amended to read as follows:
“(17) Education loan payments.—The deduction allowed by section 221.”.
(c) Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025. <all>
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