ADA sends Advocacy Update on reconciliation bill
Expresses support for pass-through entity tax deduction, concern for other provisions
The American Dental Association sent an Advocacy Update to members July 10 on the implications of President Donald Trump’s One Big Beautiful Bill Act, H.R. 1. The update expressed support for certain provisions, such as the pass-through entity tax deduction, and concern for other provisions, such as those negatively impacting the dental workforce and access to care.
The final budget reconciliation bill included full restoration of the pass-through entity tax deduction, the ADA noted in the message, which avoids a nearly 5% tax increase on dental practices and preserves tax parity for small business dentists. Elimination of the deduction for specific service trades or businesses, like small dental practices, was initially proposed in the House version of the bill.
“Fortunately, the ADA’s lobbying team uncovered this quickly and mobilized to protect dentistry from this targeted and discriminatory tax hike,” the Advocacy Update said. “The comprehensive grassroots lobbying effort leveraged key relationships and resulted in more than 11,000 letters sent to Capitol Hill urging the restoration of [the pass-through entity tax deduction]. Your support made all the difference.”
The bill includes a permanent 20% small business income deduction, restoration of 100% bonus depreciation, new domestic research tax incentives, the preservation of a 21% corporate tax rate, and a $40,000 individual state and local tax deduction.
However, it also included several provisions that will negatively impact the dental workforce and access to care, such as potentially forcing states to reduce adult dental benefits and the elimination of the GradPLUS loan program.
“The ADA remains concerned about the regressive student loan provisions that eliminate the GradPLUS loan program and cap lifetime financial aid amounts for undergraduate and professional school students. Limited loan repayment options will place new barriers for current and future dental students that may exacerbate workforce shortages, particularly in rural and underserved areas,” the update said.
Senate Republicans passed the bill July 1 in a 51-50 vote, with three Republicans and all Democrats voting against final passage and Vice President JD Vance breaking the tie. The U.S. House of Representatives then passed the legislation July 3 in a vote of 218-214, with two Republicans joining every Democrat in voting against the bill. Mr. Trump signed the bill into law July 4.
