ADA Says Impact of Big, Beautiful Bill on Dentistry Is Significant
The American Dental Association released a 3-page summary of the effects of this legislation on the practice of dentistry.
President Trump’s One Big Beautiful Bill Act HR1 was signed into law on July 4, 2025. The American Dental Association (ADA) has since done a deep dive to determine its impact on dentistry. The effects are threefold, impacting taxation, education, and Medicaid coverage.
The effect on taxation appears to be positive. According to the ADA, the pass-through entity tax deduction has been maintained, which will prevent dentists from experiencing a 1.5% to 5% tax increase. The bill also affords a 20% deduction for small business income, the ability to write off 100% of new equipment or property expenses, new deductions for conducting research, a 21% corporate tax rate, reduced from 35%, the ability to write off post-secondary credentialing costs, and the option to deduct the cost of eligible assets from taxable income.
Regarding education, future oral health professionals may face more difficulty in funding their education. The bill eliminated the Graduate PLUS Loan program, which many dental students use to pay for dental school. There are also new restrictions on the amount that parents can borrow for their children’s education as well as overall reductions in the availability of federal student loans.
Many individuals who are covered by Medicaid may face hurdles in continuing their coverage due to new work requirements and the need to consistently prove eligibility. While pediatric dental benefits remain, adult benefits may fall by the wayside as states take on a greater proportion of Medicaid costs. Caps on state-directed payments may reduce reimbursement for dental practices. Click here to read more.
