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Amends section 340H of the Public Health Service Act to (1) require an updated per-resident payment floor for qualified teaching health centers (minimum $170,000 for FY2026 and increases of at least $10,000 each FY beginning FY2027) and (2) add subsection (g)(1) subparagraphs (G)–(P) specifying authorized funding amounts for fiscal years 2026 through 2035.
Adds new provisions at the end of Part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070).
Amends subsection (h) by (1) modifying cross-references in paragraph (4)(F)(i) and paragraph (4)(H)(i) to refer to a new paragraph (11), and (2) adding a new paragraph (11) establishing distribution rules for additional full‑time equivalent residency positions (including total and annual caps, allocation percentages for psychiatry and primary care, application/usage requirements, definitions, notification timing, and aggregation rules).
Modifies clause (v) to include subsection (h)(11) in an existing cross-reference (previously referenced (h)(10) only) and adds a new clause (xiii) specifying how the indirect medical education (IME) adjustment factor is to be computed for additional resident positions provided under new subsection (h)(11) for discharges occurring on or after July 1, 2027.
Amends the provision identified as 1886(h)(7)(E) (captioned here as 'Prohibition on judicial review') by inserting additional text at a specified point. The exact inserted text/content is not included in the provided section excerpt.
Adds a new section 778A to Subpart 2 of part E of title VII of the Public Health Service Act establishing a Rural Relocation Grant Program.
Creates several new and expanded federal supports to grow the health workforce and shift more clinicians into underserved areas. It authorizes new grant programs for health profession schools, raises per‑resident payments and multi‑year funding for qualified teaching health centers, creates up to 50,220 new Medicare-funded residency positions with specialty and distribution rules, updates related Medicare payment rules, and establishes a rural relocation grant program offering up to $20,000 per clinician with a 3‑year service commitment. The bill sets multi‑year funding authorizations from FY2026 through FY2035 and phases some changes to begin FY2026–FY2027.
Adds new grant provisions titled “MED, DENTAL, and NURSE Grants” by amending Part A of Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070) and appending text to that part. The uploaded file indicates the amendment but does not include the appended text.
Adds new provisions titled “Increasing enrollment at health professions schools” by amending Part E of Title VII of the Public Health Service Act (42 U.S.C. 294n et seq.) and appending text to that part. The uploaded file indicates the amendment but does not include the appended text.
Amend Section 340H of the Public Health Service Act by adding a requirement in subsection (c)(2)(B) that the Secretary update the per‑resident payment amount for each qualified teaching health center so that the amount for fiscal year 2026 is not less than $170,000, and for fiscal year 2027 and each fiscal year thereafter is not less than the sum of the amount determined for the previous fiscal year plus $10,000.
Amend subsection (g)(1) of Section 340H by (A) changing punctuation in subparagraph (E) (strike and insert a semicolon), (B) changing punctuation in subparagraph (F) (replace period with semicolon), and (C) adding new subparagraphs (G) through (P) that specify total dollar amounts for each fiscal year 2026 through 2035.
Authorize $892,500,000 for fiscal year 2026 as a new subparagraph (G) under subsection (g)(1).
Who is affected and how:
Hospitals and teaching sites: Community and teaching hospitals that qualify for new Medicare GME slots or that host teaching health center residents will be directly affected. Hospitals will need to meet qualifying requirements to receive awards, manage added residents, and adapt billing/payment practices under revised IME/related payment rules. The new slots and payments are likely to improve financial feasibility of expanding residency programs for many hospitals.
Medical residents/trainees, nursing and dental trainees, and the broader health care workforce: The creation of up to 50,220 new residency FTEs and expanded educational grant authority aims to increase the number of trained clinicians, with explicit targeting to psychiatry and primary care. Trainees will see more training slots and potentially new sites in rural and underserved areas.
Qualified teaching health centers: Will receive higher and floor per‑resident payments, improving revenue predictability and capacity to host residents and provide community‑based training.
Physicians, nurses, and dentists considering rural practice: Eligible clinicians can receive up to $20,000 to relocate, reducing upfront costs and creating incentives to practice in rural areas, in exchange for a 3‑year service commitment or partial repayment.
Rural communities and patients: Intended beneficiaries of increased clinician recruitment and residency distribution. Expanded rural placements and relocation grants should improve access to primary care, behavioral health, and dental services in underserved areas over the medium term.
Federal budgets and Medicare trust funds: The bill authorizes significant multi‑year spending and expands Medicare GME positions and payment floors, which will increase federal outlays. Budgetary impacts depend on award uptake, payment rates, and how IME updates change hospital payments.
Federal agencies and administrators (HHS/CMS): Will face implementation responsibilities including setting award rules and timelines, establishing payment floors and annual increases, defining hospital eligibility and compliance, and integrating new slots into existing GME payment systems. This may require regulatory action, system updates, and monitoring resources.
Potential tradeoffs and risks:
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Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Introduced September 30, 2025 by Bernard Sanders · Last progress September 30, 2025
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Introduced in Senate