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Creates a federal scholarship program, run by HRSA, that pays tuition and reasonable educational expenses for students training for substance use disorder treatment and behavioral and mental health professions in exchange for required service in designated shortage or high‑overdose areas. Recipients must serve one year for each school year of scholarship support; the program allows contracts with educational institutions, sets academic standards and repayment rules for breaches, and establishes a Treasury recovery fund to replace providers and receive recoveries and interest. The bill also makes these scholarships tax‑exempt under the Internal Revenue Code and authorizes $75 million per year for fiscal years 2026–2030.
The bill increases the SUD and behavioral/mental health workforce in high-need areas by funding scholarships and placement supports—improving access to care—but does so with federal spending, service obligations that limit recipients' flexibility, and financial penalties and prioritization rules that may disadvantage some applicants.
People living in shortage and high-overdose areas gain access to more substance use disorder (SUD) and behavioral/mental health providers because scholarship recipients must complete service in those areas after training.
Students training for SUD and behavioral/mental health careers receive scholarships that cover tuition and reasonable educational expenses, and those scholarship amounts are excluded from gross income, reducing recipients' out-of-pocket and tax burdens.
Hospitals and health systems can tap a funding pool to recruit replacement clinicians after a contract breach, helping limit disruptions in patient care and maintain service continuity.
All taxpayers bear increased federal spending because the program authorizes $75 million per year (2026–2030), adding to the federal budget and potentially crowding out other priorities.
Students accepted into the program face restricted flexibility because of the obligated full-time service requirement and geographic placement rules, limiting career and location choices during the service period.
Students who cannot complete their obligated service risk owing liquidated damages, creating potential significant financial liability for trainees—especially low-income recipients—if they breach their contracts.
Introduced May 29, 2025 by Andrea Salinas · Last progress May 29, 2025