Sponsors (2)
The bill invests federal resources to expand and target residency training—especially for rural and shortage areas—to grow the physician workforce, but it increases federal spending, may leave many areas underfunded, and creates implementation and equity challenges that could limit who benefits.
Hospitals and patients in underserved areas will gain more physicians as the bill creates new Medicare-funded residency slots and supports creation of rural-focused residency programs.
Rural and Health Professional Shortage Areas are prioritized for new slots and grants, likely improving primary care and other high-need services where shortages are worst.
Hospitals and training programs receive financial support (Medicare per-resident payments plus grants and technical assistance) that lowers the startup and operating barriers for GME expansion.
Taxpayers face higher federal spending because expanding Medicare-funded residency positions and new programs increase Medicare outlays and may require additional federal funds.
Many rural areas and eligible applicants may remain unsupported because the dedicated grant funding ($12.7M/year) is limited relative to nationwide demand for rural training expansion.
Smaller hospitals and clinics may struggle to meet the required expansion, five‑year training commitments, or the administrative requirements to apply, limiting who can benefit.
Based on analysis of 4 sections of legislative text.
Adds up to 2,000 new Medicare-supported residency positions per year (FY2026–2032), creates rural residency planning and TA grants, and authorizes $12.7M/year for FY2026–2030.
Official title: To amend title XVIII of the Social Security Act to provide for the distribution of additional residency positions, and for other purposes.
Introduced June 10, 2025 by Terri Sewell · Last progress June 10, 2025
Increases the number of Medicare-supported residency positions and creates grant programs to expand rural residency training. The bill amends Medicare payment law to allow the Secretary to raise hospitals’ resident caps by allocating an annual pool of additional positions (2,000 per year) for fiscal years 2026–2032 and establishes competitive grants and technical assistance to plan and build rural residency programs, with $12.7 million authorized annually for FY2026–2030. It also directs the GAO to study strategies to increase diversity in the health professions and report back to Congress within two years.