Resident Physician Shortage Reduction Act of 2025

Summary

Creates a multi-year effort to expand physician residency training by adding new Medicare-funded residency positions, funds planning and technical assistance to build rural residency programs, and requires a GAO study on strategies to improve diversity in the health workforce. It directs HHS/CMS to run annual application rounds to award up to 2,000 additional Medicare residency slots per year for 2026–2032, reserves part of each year’s slots for hospitals already operating above their Medicare cap, and authorizes grants (with $12.7 million annually for 2026–2030) to support rural residency planning and technical assistance.

• Creates an annual national pool of up to 2,000 new Medicare-funded residency slots for each year 2026–2032, with carryover and exceptions possible.
• Reserves one-third of each year’s new positions for hospitals already operating over their Medicare resident cap.
• Requires CMS to run yearly application rounds, notify hospitals by January 1, and make approved increases effective for cost reporting periods starting on/after July 1.
• Adds a new statutory paragraph to the Medicare residency cap rules; substantive effects depend on the text of that new paragraph and inserted language.
• Directs the GAO to study strategies to increase diversity in the health professional workforce and report recommendations to Congress within two years.
• Creates a Rural Residency Planning and Development grant program (3-year grants) and a Technical Assistance program (4-year grants) to expand rural training.
• Authorizes $12.7 million per year for FY2026–FY2030 for the rural residency programs, funds available until expended.
• Eligible grant recipients include rural hospitals, rural health clinics, Tribal health entities, consortia, institutions of higher education, and public/private organizations.