Resident Physician Shortage Reduction Act of 2025

This bill aims to train more doctors by adding new, Medicare-supported residency slots at hospitals across the country. It would create 2,000 new positions each year from 2027 through 2033, for a total of 14,000, with unused spots rolling over until all are placed. Hospitals apply each year; they’re told how many slots they get by January 31, and the slots take effect starting July 1 of that year. Hospitals must agree to actually add the new positions. A single hospital generally can’t get more than 75 added slots over this period, unless there aren’t enough applicants and more can be offered. Payments to teaching hospitals are updated to reflect these added residents starting July 1, 2027.

When slots are handed out, the government must make sure a share goes to hospitals that treat shortage areas, rural communities, and states with new or expanding medical schools, and to hospitals already training above their cap. Priority is also given, in some cases, to hospitals linked with historically Black medical schools. The bill also orders a national study on how to increase diversity in the health workforce, including growing the number of providers from rural, low-income, and underrepresented communities.

• Who is affected:

  • Patients in rural and shortage areas, who could see more local doctors in training.
  • Teaching hospitals that apply for new residency slots.
  • Medical communities working to diversify the workforce.

• What changes:

  • 14,000 new residency slots over seven years; up to 75 per hospital in most cases; must actually add positions.
  • Targeted distribution to rural, shortage-area, and growth states; some priority for ties to historically Black medical schools.
  • Teaching hospital payment rules adjusted for these new residents.

• When:

  • Annual application rounds for fiscal years 2027–2033; awards announced by January 31; slots effective starting July 1 each year.
  • Diversity study report due within two years of enactment.