Dental Loan Repayment Assistance Act of 2025
- Bill Number
- H.R. 1758
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-02-27: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-10-04T08:06:06Z
AI-Generated Summary
Purpose
The Dental Loan Repayment Assistance Act of 2025 aims to encourage more individuals to serve as faculty in dental schools by making certain federal loan repayments for these faculty members tax-free. This supports the development of dental education and healthcare workforce, particularly in underserved areas, by reducing financial barriers for educators.
Key Provisions
- Tax Exclusion Amendment: Amends Section 108(f)(4) of the Internal Revenue Code (IRC) to expand the exclusion of loan repayment amounts from gross income (taxable income). This now includes repayments under programs funded by grants or contracts awarded under Section 748(a)(2) of the Public Health Service Act, which covers the Dental Faculty Development and Loan Repayment Program.
- Effective Date: The changes apply to amounts received in tax years starting after the bill's enactment.
- GAO Reporting Requirement: Directs the Government Accountability Office (GAO), an independent agency that audits federal programs, to review and report to Congress on participation in the Dental Faculty Development and Loan Repayment Program. The report will assess how many dental providers and faculty remain as full-time educators and practitioners in dental schools, hospitals, or community sites after receiving funding, focusing on retention rates.
Significant Changes to Existing Law
- Expansion of Tax Exclusion: Previously, Section 108(f)(4) of the IRC only excluded loan repayments under the National Health Service Corps program and certain state programs from gross income. This bill broadens it to include the specific federal dental faculty loan repayment program, making those subsidies non-taxable.
- Updated Heading: Changes the subsection's title from "Payments under national health service corps loan repayment program and certain state loan repayment programs" to "Certain federal and state loan repayment programs" for clarity and inclusivity.
- No other major alterations to tax law or public health statutes are introduced, but the GAO report adds a new oversight mechanism to evaluate program effectiveness.
Potential Impacts
- On Government Agencies: The Internal Revenue Service (IRS) will need to adjust tax processing and guidance to implement the exclusion, potentially reducing tax revenue slightly. The Department of Health and Human Services (HHS), which administers the loan program, may see increased applications and participation. The GAO will conduct a one-time review, informing future funding decisions.
- On Citizens: Dental school faculty and providers benefiting from the program will face lower tax burdens on loan repayments (up to the program's subsidy amount), making it more financially attractive to teach and practice in dental education settings. This could indirectly improve access to dental care by strengthening the educator pipeline.
- On International Relations: No direct impacts, as the bill focuses on domestic tax and public health policies.
Main Stakeholders Affected
- Dental School Faculty and Providers: Primary beneficiaries, as they can receive tax-free loan forgiveness for serving in eligible roles.
- Dental Schools and Educational Institutions: Gain from potentially higher retention of full-time faculty, enhancing teaching and clinical training capacity.
- Federal Government Entities: IRS (tax administration), HHS (program funding and oversight), and Congress (informed by GAO report for policy adjustments).
- Taxpayers: May see a minor increase in federal spending or reduced revenue due to the tax exclusion, but overall supports public health workforce goals.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens tax incentives for public service in healthcare education, aligning with existing IRC exclusions for similar programs (e.g., for physicians). It promotes equity in loan forgiveness by extending benefits to dental educators, but could face scrutiny if challenged on equal protection grounds (though unlikely, as it targets a specific workforce shortage area).
- Constitutional Implications: No apparent conflicts with constitutional principles; it falls under Congress's taxing and spending powers (Article I, Section 8). The GAO report enhances congressional oversight without infringing on executive functions.
- Political Implications: Bipartisan sponsorship (by Rep. Van Drew and Rep. Clarke) signals broad support for addressing dental workforce shortages. It could influence future healthcare legislation by highlighting retention issues via the GAO report, potentially leading to program expansions or budget adjustments amid ongoing debates on student debt relief.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Van Drew, Jefferson [R-NJ-2]
Cosponsors (5)
Rep. Clarke, Yvette D. [D-NY-9], Rep. Ross, Deborah K. [D-NC-2], Rep. Sewell, Terri A. [D-AL-7], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Malliotakis, Nicole [R-NY-11]
Recent Actions
- 2025-02-27: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-02-27: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-02-27: Introduced in House
- 2025-02-27: Introduced in House
Bill Versions
- Dental Loan Repayment Assistance Act of 2025 — issued 2025-02-27 — PDF (3 pages)