Sponsors (4)
The bill trades targeted, sizable loan relief and a strengthened mental‑health workforce in underserved areas for increased federal costs, limited program reach, and constraints on participant flexibility and potential interest burdens.
Students and supervised trainees at minority-serving institutions can get up to $200,000 (or full) of qualifying federal student loan principal and interest forgiven after 5 years of full‑time service in designated shortage areas.
People living in mental‑health and substance‑use shortage areas (including rural and underserved communities) may gain more access to care as providers commit to five years of full‑time local service, increasing provider availability.
Eligible trainees obtain near‑term financial relief because principal payments are postponed during service, lowering monthly payments while they work in shortage areas.
All taxpayers could face increased federal spending because the program may forgive up to $200,000 per participant if many enroll.
Students and low‑income trainees beyond the targeted minority‑serving institutions or with non‑federal loans are excluded, leaving many needy trainees without access to these benefits.
Participants must commit to five consecutive years of full‑time service in designated areas, which reduces career flexibility and may deter some trainees from taking the program.
Based on analysis of 2 sections of legislative text.
Establishes a federal 5-year service loan deferment and forgiveness program for qualifying mental health trainees from minority-serving institutions, with up to $200,000 forgiven after service.
Official title: To amend title VII of the Public Health Service Act to strengthen the mental health workforce, and for other purposes.
Introduced March 4, 2026 by Troy Carter · Last progress March 4, 2026
Creates a new federal program that lets eligible students and supervised trainees from minority-serving institutions who are training to be mental or behavioral health providers enter 5-year service contracts in designated mental health shortage areas. While they work full time in qualifying positions, their loan principal payments are deferred (interest may accrue and be paid), and after five consecutive years of service without default, up to $200,000 (or 100% if less) of eligible federal student loan principal and interest is forgiven. The program specifies which loans and provider professions qualify, requires a five-year full-time service commitment at solo practices or institutions serving shortage-area patients, and is administered by the Department of Health and Human Services Secretary under the Public Health Service Act.