Bill Summary
The "Dental Loan Repayment Assistance Act of 2025" is a proposed piece of legislation aimed at amending the Internal Revenue Code to provide tax relief for dental school faculty. Specifically, it seeks to exclude certain federally subsidized loan repayments from being counted as gross income for tax purposes. This change would apply to loan repayments received under specific federal and state loan repayment programs, particularly those tied to the Dental Faculty Development and Loan Repayment Program.
The act includes provisions for conforming amendments to the existing tax code and mandates a report by the Government Accountability Office (GAO). This report will assess the participation of dental faculty in programs funded by this initiative, focusing on their ongoing engagement as full-time educators and practitioners following the receipt of these loan repayments. The amendments are set to take effect for taxable years starting after the enactment of the bill.
Possible Impacts
The "Dental Loan Repayment Assistance Act of 2025" could have several effects on individuals and communities. Here are three examples:
1. **Financial Relief for Dental Faculty**: By excluding certain federally subsidized loan repayments from gross income, dental school faculty who participate in these loan repayment programs will see a reduction in their taxable income. This could lead to significant financial relief, allowing them to retain a larger portion of their earnings and potentially invest more in personal or professional development, such as further education or home purchases.
2. **Increased Recruitment and Retention of Dental Educators**: With the financial burden of student loans alleviated, dental schools may find it easier to attract and retain qualified faculty. This could enhance the quality of education and training for dental students, ultimately leading to a better-prepared workforce. As a result, communities could benefit from a higher standard of dental care and more accessible educational resources.
3. **Improved Access to Dental Care in Underserved Areas**: The act encourages dental faculty to engage in teaching and practicing in community clinics, potentially focusing on underserved areas. By incentivizing faculty to remain in these roles after receiving loan repayment assistance, the legislation could help improve access to dental care for populations that otherwise might lack it, thereby addressing oral health disparities in those communities.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1080 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1080
To amend the Internal Revenue Code of 1986 to exclude from gross income
certain federally subsidized loan repayments for dental school faculty.
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IN THE SENATE OF THE UNITED STATES
March 14, 2025
Mr. Wicker (for himself and Mr. Durbin) introduced the following bill;
which was read twice and referred to the Committee on Finance
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A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income
certain federally subsidized loan repayments for dental school faculty.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Dental Loan Repayment Assistance Act
of 2025''.
SEC. 2. EXCLUSION OF CERTAIN FEDERALLY SUBSIDIZED LOAN REPAYMENTS FOR
DENTAL SCHOOL FACULTY.
(a) In General.--Section 108(f)(4) of the Internal Revenue Code of
1986 is amended by inserting ``, under a loan repayment program
receiving a grant or contract under section 748(a)(2) of such Act''
after ``section 338I of such Act''.
(b) Conforming Amendment.--Section 108(f)(4) of the Internal
Revenue Code of 1986 is amended by striking ``National health service
corps loan repayment program and certain state loan repayment
programs'' in the heading thereof and inserting ``certain federal and
state loan repayment programs''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts received in taxable years beginning after the date of
the enactment of this Act.
(d) GAO Report.--The Comptroller General of the United States shall
review and report to the appropriate committees of Congress on the
participation of dental providers and faculty in areas and schools
receiving funding from the Dental Faculty Development and Loan
Repayment Program under section 748(a)(2) of the Public Health Service
Act (42 U.S.C. 293k-2(a)(2)), including the extent to which they remain
full-time faculty teaching and practicing in dental clinics located in
dental schools, hospitals, or community-based affiliated sites after
receiving funding from the program.
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