Strengthening Pathways to Health Professions Act

This bill would change the tax code so certain health education scholarships and loan repayment benefits don’t count as taxable income. It covers federal programs under the Public Health Service Act and similar state programs that aim to place health workers in underserved or shortage areas. It also makes specific health scholarship programs tax-free, so students and professionals can keep more of the support they receive.

In short, the goal is to make it easier and more affordable for people to train for health jobs and serve in communities that need care the most. The new tax treatment would start for money received in tax years that begin after the law takes effect.

• Who is affected: Health profession students and workers receiving certain scholarships or loan repayment/forgiveness tied to service in underserved or shortage areas.
• What changes: These payments would no longer be counted as taxable income under the Internal Revenue Code. This includes specific federal programs and comparable state programs designed to boost care in high-need areas. It also covers certain scholarship programs named in the bill.
• When: Applies to amounts received in tax years starting after the date the law is enacted.