H.R. 7536

119 HR 7536 IH: Generating Relief for Academic Debt Using Assisted Tax Efficiency Act
 U.S. House of Representatives
 2026-02-12
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  2d Session  H. R. 7536  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.
1.
Short title
This Act may be cited as the   Generating Relief for Academic Debt Using Assisted Tax Efficiency Act   or the   GRADUATE Act  .
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.