WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.), a member of the Senate Finance Committee, led Senators Alex Padilla (D-Calif.), Jeanne Shaheen (D-N.H.), Richard Blumenthal (D-Conn.), Ron Wyden (D-Ore.), Tammy Duckworth (D-Ill.), Kirsten Gillibrand (D-N.Y.), Bernie Sanders (I-Vt.), and Cory Booker (D-N.J.) in reintroducing the Student Loan Deduction Act, legislation to allow households utilizing Supplemental Nutrition Assistance Program (SNAP)—known as 3Squares in Vermont—to deduct monthly payments made on federal and private student loans from their income when calculating eligibility for the food assistance program.
“Nearly 70,000 Vermonters rely on SNAP, called 3Squares in Vermont. It is essential this vital hunger assistance program accurately captures the financial reality of those who need it. Yet we’re seeing SNAP recipients lose out on vital benefits because of outdated income requirements that don’t reflect financial stresses, like high student loan payments,” said Senator Welch. “This legislation aims to expand access to SNAP benefits, so student loan payments don’t impact Vermonters’ ability to feed their families.”
“With the cost of education and grocery bills climbing, vulnerable Californians should not be punished for costs they can’t avoid,” said Senator Padilla. “In the wake of Donald Trump and Republicans’ cruel cuts to nutrition assistance, we must ensure that California families receive the full SNAP benefits they rely on. This bill would finally ensure that monthly student loan payments are treated like housing and child care expenses and deducted from income calculations for determining SNAP benefits.”
“Those with student loan debt are working with tight budgets, made even more slim by the rising cost of living,” said Senator Shaheen. “In the wake of Republican cuts to food assistance programs, I’m glad to join my colleagues in introducing a bill that will improve SNAP support for households with federal or private student loan debt, ensuring they can put enough food on the table for their families.”
“The Student Loan Deduction Act ensures that people are not missing out on essential assistance through SNAP because of student loan payments and the increased cost of living. Outdated SNAP income requirements are preventing families from accessing the SNAP benefits they deserve, putting unnecessary stress on their hard-earned paychecks. This legislation recognizes the financial burdens straining a household’s income and supports families as they overcome obstacles to put food on the table,” said Senator Blumenthal.
“With costs rising by the day, folks walking an economic tightrope like seniors and students shouldn’t have to choose between paying to put food on the table or paying for other necessities,” said Senator Wyden. “This legislation will ensure that these people get the support they need to succeed and thrive. I’m proud to work with Senator Welch and Congresswoman Moore to help make this a reality.”
“As Trump and Republicans gut food assistance and other basic needs programs and make sure even fewer neighbors in need can access these vital benefits, I’m proud to join my colleagues in introducing this legislation that would help reverse that trajectory,” said Senator Duckworth. “We should be making it easier—not harder—for our fellow Americans to put food on the table, and our bill would help to ensure more students and families in need can access the SNAP benefits they deserve so they don’t have to worry about where their next meal is coming from.”
“No one should have to choose food over paying back their student loans,” said Senator Gillibrand. “The Student Loan Deduction Act will ensure that when we calculate eligibility for SNAP, we account for the crushing burden of student debt that millions of families are carrying every month. By treating student debt payments like other essential expenses, we better ensure people have access to the food assistance they need. 2.9 million New Yorkers rely on SNAP, and I won’t stop fighting until every recipient gets the support they need to put food on the table.”
According to the Education Data Initiative, 42.5 million U.S. borrowers have federal student loan debt, averaging $38,375 per borrower, while the average monthly student loan payment is an estimated $536. By permitting a deduction for these payments, the legislation aims to provide a more accurate representation of a household’s available income. Furthermore, this approach aligns with existing practices within SNAP, where various deductions, such as housing and childcare expenses, are already considered in the determination process.
Last year, Vermonters enrolled in SNAP received an average of $184.48 per month, or $6.06 per day, in benefits. According to new data released by Senator Welch, 6,000 Vermonters are at risk of losing some or all of their SNAP assistance as a result of President Trump’s economic policies and Republicans’ so-called One Big Beautiful Bill Act (OBBBA). The average family in Vermont that relies on food assistance will lose $94 every month.
The Student Loan Deduction Act of 2025 is endorsed by the Food Research & Action Center (FRAC); Hunger Free Vermont; and MAZON: A Jewish Response to Hunger.
“SNAP is our nation’s first line of defense against hunger and a lifeline for more than 42 million people. Yet current income rules fail to reflect the real financial burdens families face, including the costs of higher education and student loan debt. The Student Loan Deduction Act of 2025 takes an important step forward by allowing student loan payments to count in SNAP eligibility calculations. This change acknowledges the true expenses households with low incomes carry and will help ensure they receive adequate benefits. We urge Congress to pass this bill without delay,” said Crystal FitzSimons, President, Food Research & Action Center (FRAC).
“Going hungry should never be a consequence of pursuing the American Dream through higher education. Yet thousands of Vermonters with student loan debt—and millions across the U.S.—are unable to access SNAP benefits due to outdated deduction rules that do not recognize the financial burden of student loan payments. By allowing student loan payments to be deducted from income when determining SNAP eligibility, the Student Loan Deduction Act opens the door for more families and individuals to access necessary food support while striving to build a stable economic foundation and repaying their student loans. Passing the Student Loan Deduction Act would be a win for America’s future!” said Anore Horton, Executive Director, Hunger Free Vermont.
“No one should have to choose between getting an education that can lift them out of poverty and feeding themselves or their families. Still, that is the painful reality for millions of Americans. The Student Loan Deduction Act will ensure that those who pursue an education are treated fairly if they seek government assistance,” said Abby J. Leibman, President & CEO, MAZON: A Jewish Response to Hunger. “Especially at this inflection point, when our economy is so uncertain and SNAP and other basic needs programs are facing pernicious attacks, it is vital that we work toward solutions to help families receive the food assistance they need to build a better life for themselves.”
Senator Welch voted against the so-called ‘One Big Beautiful Bill’ Act and was outspoken in his opposition to the cuts and changes to the SNAP program. Senator Welch has been a leading advocate for protecting and expanding access to nutrition programs in the Senate. Last month, the Senator joined nutrition advocates and leaders from across Vermont for a press conference outlining how President Trump and Republicans’ tax and spending bill will hurt SNAP and other hunger and nutrition assistance programs.
In May, Senator Welch hosted a press call with Senators Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Ron Wyden (D-Ore.), Jeff Merkley (D-Ore.), Oregon Governor Tina Kotek, and Hunger Free Vermont on Republicans’ efforts to gut SNAP. Senator Welch also recently joined Senator Kirsten Gillibrand (D-N.Y.) in introducing the Improving Access to Nutrition Act of 2025, legislation to help more Americans access SNAP by lifting Republicans’ punitive time limits on SNAP eligibility requirements.
Learn more about the Student Loan Deduction Act of 2025.
Read and download the full text of the bill.
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