In recent times, graph-based semi-supervised learning proved to be a powerful paradigm for processing and mining large datasets. The main advantage relies on the fact that these methods can be useful in propagating a small set of known labels to a large set of unlabeled data. The scarcity of labeled data may affect the performance of the semi-learning. This paper introduces a new semi-supervised framework for simultaneous linear feature extraction and label propagation. The proposed method simultaneously estimates a discriminant transformation and the unknown label by exploiting both labeled and unlabeled data. In addition, the unknowns of the learning model are estimated by integrating two types of graph-based smoothness constraints. The resulting semi-supervised model is expected to learn more discriminative information. Experiments are conducted on six public image datasets. These experimental results show that the performance of the proposed method can be better than that of many state-of-the-art graph-based semi-supervised algorithms.