Senate HELP and Finance Committees Release Reconciliation Texts
On June 11, 2025, the U.S. Senate Health, Education, Labor and Pensions (HELP) Committee released its portion of the budget reconciliation bill, which includes several provisions mirroring those in the reconciliation bill passed by the U.S. House of Representatives on May 22. Both bills would eliminate the GRAD Plus loan program and revise the Public Service Loan Forgiveness Program (PSLF) to exclude medical and dental internships and residency programs from qualifying repayment for new borrowers. While both versions of the reconciliation text propose limits on unsubsidized Stafford loan borrowing, the Senate version sets fixed annual and aggregate caps by degree level, whereas the House version ties annual limits to the median cost of the student’s program of study. The Senate bill proposes an aggregate borrowing cap of $200,000 for individuals pursuing professional degrees, while the House version sets this cap at $150,000.
On June 16, 2025, the Senate Finance Committee released its portion of the budget reconciliation package. While largely aligned with the House-passed version, the Senate text includes key changes relevant to general dentists. Notably, the House-passed bill would eliminate the ability of small business dental practices to deduct state-level pass-through entity taxes (PTET) on their federal returns. The Senate bill, however, contains a modified deduction, allowing practices to deduct the unused portion of their SALT deduction plus the greater of $40,000 or 50 percent of their PTET allocation.
The Senate HELP Committee reconciliation text can be found here.
The Senate Finance Committee reconciliation text can be found here.
This will prove to be a pivotal week for the reconciliation bill as it undergoes Parliamentarian review and finalization of text. Senate Republican leaders hope to begin the process to advance the bill on the floor this week and pass it shortly thereafter in order to send it back to the House of Representatives for final approval. This would meet President Trump’s goal to sign the bill before July 4th. However, this ambitious timeline may slip.
Impact on General Dentistry: The proposed elimination of the Grad PLUS loan program and changes to PSLF would significantly increase the financial burden on future dental professionals, potentially discouraging entry into the field. With dental school debt already averaging over $312,000, these changes could reduce access to dental care in underserved areas. Additionally, limiting the PTET deduction would raise taxes for small business dental practices. On June 9, 2025, the AGD signed onto a coalition letter urging Senate leadership to protect PTET deductibility. The AGD also published a Call to Action urging its membership to contact their U.S. Senators and tell them to protect the PTET deduction.
As the budget reconciliation package moves to the Senate floor for further consideration, the AGD will continue its advocacy on behalf of general dentists and their patients.
On June 16, 2025, the Senate Finance Committee released its portion of the budget reconciliation package. While largely aligned with the House-passed version, the Senate text includes key changes relevant to general dentists. Notably, the House-passed bill would eliminate the ability of small business dental practices to deduct state-level pass-through entity taxes (PTET) on their federal returns. The Senate bill, however, contains a modified deduction, allowing practices to deduct the unused portion of their SALT deduction plus the greater of $40,000 or 50 percent of their PTET allocation.
The Senate HELP Committee reconciliation text can be found here.
The Senate Finance Committee reconciliation text can be found here.
This will prove to be a pivotal week for the reconciliation bill as it undergoes Parliamentarian review and finalization of text. Senate Republican leaders hope to begin the process to advance the bill on the floor this week and pass it shortly thereafter in order to send it back to the House of Representatives for final approval. This would meet President Trump’s goal to sign the bill before July 4th. However, this ambitious timeline may slip.
Impact on General Dentistry: The proposed elimination of the Grad PLUS loan program and changes to PSLF would significantly increase the financial burden on future dental professionals, potentially discouraging entry into the field. With dental school debt already averaging over $312,000, these changes could reduce access to dental care in underserved areas. Additionally, limiting the PTET deduction would raise taxes for small business dental practices. On June 9, 2025, the AGD signed onto a coalition letter urging Senate leadership to protect PTET deductibility. The AGD also published a Call to Action urging its membership to contact their U.S. Senators and tell them to protect the PTET deduction.
As the budget reconciliation package moves to the Senate floor for further consideration, the AGD will continue its advocacy on behalf of general dentists and their patients.