American Dental Association announces $20M budget cut, ends multiple programs

The American Dental Association (ADA) recently announced a $20 million expense reduction as a part of their 2025 budget plan. The exigency for such drastic cuts stem from years of deficit spending, including $142 million from its reserve funds between March of 2022 and March of 2025.¹

What's changing

Multiple ADA programs will be changing or disappearing altogether, and funding for initiatives like the Dentist and Dental Hygienist Compact and the Large Group/Multi-site Practice Engagement Task Force will cease. Programs in the works-such as the AFI Certified program and ADA Loyalty program-will also be discontinued.¹

In addition, there will be reductions to staff, marketing, and a significant reduction in operational and volunteer expenses. Moving forward, the ADA will only be offering CE courses at annual scientific sessions. The ADA Success Program and their November 2025 meeting will become virtual, too.¹

ADA president Brett Kessler believes the organization's cuts are necessary to achieve a balanced budget for the long-term future. He said: "These strategic initiatives were designed to help modernize and grow the Association; however, the Board acknowledges that implementing large-scale changes very quickly has placed unintended financial strain on the ADA."¹

Where the money is going

The $142 million from their reserve funds was used to upgrade organizational systems, strengthen advocacy efforts, and support a new management system. The ADA broke down the allocation of their funds in an open letter to members published on August 7. According to ADA data, the three biggest expenditures went towards the association management system (AMS), relieving 2023-2024 debt, and the ADA Forsyth Institute integration.²

Overall, revenue has been down by 6% since April of last year and membership market shares are down 53.5% (as of the end of 2024). Projections indicated the ADA's market share would be less than 50% in 2026 unless things drastically change.²

In their open letter, the ADA noted: "As we move forward, we are committed to placing transparency at the heart of our decision-making and to prioritizing collaboration at every step. We value your trust, and we are dedicated to rebuilding and strengthening it together."²

References

1. Gansky K. ADA Board implements $20 million in cuts from 2025 budget. ADA News. August 7, 2025. https://adanews.ada.org/ada-news/2025/august/ada-board-implements-20-million-in-cuts-from-2025-budget/

1. ADA Board provides information on finances, association management system. ADA News. July 10, 2025. https://adanews.ada.org/ada-news/2025/july/ada-board-provides-information-on-finances-association-management-system/