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Creates a multi-year Medicare program to add up to 2,000 new residency positions per year (FY2026–FY2032) with a 14,000 aggregate target, reserves one-third of annual slots for hospitals already training above their caps, and limits per-hospital increases unless the Secretary raises the cap. Establishes a rural residency planning and technical assistance grant program with $12.7 million authorized per year (FY2026–FY2030) to create and expand rural residency training, and requires the Comptroller General to report within two years on strategies to increase diversity in the health workforce. New Medicare payment rules let hospitals count approved additional positions for certain payment adjustments, and unallocated residency slots carry forward until the 14,000 goal is met.
The bill meaningfully expands and targets residency training—especially for rural areas and underrepresented communities—to grow the physician workforce and diversify care, but it increases federal Medicare spending and may leave some hospitals or local needs underserved because of funding limits, caps, and competitive/prioritization rules.
Hospitals, medical trainees, and underserved communities will gain substantially more residency training capacity (up to ~2,000 new slots/year and expanded rural training) that should increase the physician workforce and improve access to care in underserved rural and urban areas.
Rural hospitals, clinics, and communities will receive grant funding and technical assistance to stand up rural residency programs and training sites, increasing local recruitment and retention of physicians who practice in rural areas.
Hospitals adding residents will receive Medicare payment recognition (per-resident payments and IME treatment), helping offset teaching costs and making expansion more financially feasible for health systems.
Taxpayers and the Medicare program will face increased federal spending to fund expanded Medicare-supported residency slots, which creates budgetary tradeoffs and higher program costs.
Medicare payments could be made for newly authorized positions even if hospitals are slow to fill them, risking inefficient use of funds if workforce demand or placement falls short.
Caps, eligibility requirements, reserved slots, and prioritization rules (e.g., HBCU-affiliated preferences) plus competitive grant processes may advantage some hospitals while leaving other hospitals and local communities with fewer new residency positions.
Introduced June 10, 2025 by Terri Sewell · Last progress June 10, 2025