Rural Veterinary Workforce Act
- Bill Number
- H.R. 2398
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-03-27: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-01T08:08:30Z
AI-Generated Summary
Summary of H.R. 2398: Rural Veterinary Workforce Act
Purpose
This bill aims to encourage veterinarians to serve in rural and underserved areas by making certain student loan repayment or forgiveness assistance tax-free. It amends the Internal Revenue Code (IRC) to exclude such assistance from an individual's taxable income, promoting access to veterinary services in regions with shortages.
Key Provisions
- Tax Exclusion for Loan Assistance: Amends Section 108(f)(4) of the IRC to exclude from gross income (taxable income) any amount received as loan repayment or forgiveness under:
- Section 1415A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (a federal program supporting veterinary services in food animal practices, often in rural areas).
- Any state-run loan repayment or forgiveness program designed to improve access to veterinary services within that state.
- Effective Date: The changes apply to amounts received in taxable years beginning after December 31, 2025.
- Short Title: The Act is named the "Rural Veterinary Workforce Act."
Significant Changes to Existing Law
- Expands the existing IRC provision on tax exclusions for student loan forgiveness, which previously covered certain public service loans but did not explicitly include veterinary-specific federal or state programs.
- Updates the section heading from "state" to "other" to reflect the broader inclusion of federal and additional state programs.
- This prevents forgiven veterinary loans from being treated as taxable income, a change from current law where such forgiveness could increase a recipient's tax liability.
Potential Impacts
- On Government Agencies: The Internal Revenue Service (IRS) will need to adjust tax reporting and enforcement rules to implement the exclusions, potentially reducing tax revenue slightly. The U.S. Department of Agriculture (USDA) may see indirect benefits through enhanced participation in its veterinary workforce programs.
- On Citizens: Veterinarians, especially those in rural or food animal practices, gain financial relief as loan forgiveness becomes tax-free, making it easier to repay education debts. Rural communities could experience improved access to essential veterinary care for livestock and public health needs.
- On International Relations: No direct impacts, as the bill focuses on domestic tax policy and agricultural workforce development.
Main Stakeholders Affected
- Veterinary Professionals and Students: Primary beneficiaries, particularly those committing to service in underserved areas.
- Rural and Agricultural Communities: Gain from increased availability of veterinary services for animal health and food supply chain stability.
- State Governments: Programs they operate for veterinary loan assistance become more attractive to participants due to the tax benefit.
- Federal Agencies: IRS (tax administration) and USDA (veterinary workforce initiatives) are directly involved in implementation.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens tax incentives for public service professions without altering broader student loan forgiveness rules; aligns with existing IRC exclusions for other public service roles (e.g., teachers, nurses). No challenges to enforceability anticipated.
- Constitutional: No apparent issues, as it involves Congress's authority over taxation and spending under Article I of the U.S. Constitution.
- Political: Demonstrates bipartisan support, with cosponsors from both parties, highlighting shared interest in rural economic and agricultural priorities. Could set a precedent for expanding tax exclusions to other shortage-area professions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (61)
Rep. Larson, John B. [D-CT-1], Rep. Fischbach, Michelle [R-MN-7], Rep. Panetta, Jimmy [D-CA-19], Rep. Feenstra, Randy [R-IA-4], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Rouzer, David [R-NC-7], Rep. Carey, Mike [R-OH-15], Rep. Budzinski, Nikki [D-IL-13], Rep. Houlahan, Chrissy [D-PA-6], Rep. Davis, Donald G. [D-NC-1], Rep. Kelly, Trent [R-MS-1], Rep. Finstad, Brad [R-MN-1], Rep. McCollum, Betty [D-MN-4], Rep. Sewell, Terri A. [D-AL-7], Rep. Costa, Jim [D-CA-21], Rep. Mann, Tracey [R-KS-1], Rep. Riley, Josh [D-NY-19], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Davids, Sharice [D-KS-3], Rep. Miller, Carol D. [R-WV-1], Rep. Meuser, Daniel [R-PA-9], Rep. Tenney, Claudia [R-NY-24], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Van Orden, Derrick [R-WI-3], Rep. Perez, Marie Gluesenkamp [D-WA-3], Rep. Vasquez, Gabe [D-NM-2], Rep. Cohen, Steve [D-TN-9], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Bergman, Jack [R-MI-1], Rep. DelBene, Suzan K. [D-WA-1], Rescom. Hernández, Pablo Jose [D-PR-At Large], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Simpson, Michael K. [R-ID-2], Rep. Baird, James R. [R-IN-4], Rep. McClain Delaney, April [D-MD-6], Rep. Goodlander, Maggie [D-NH-2], Rep. Gray, Adam [D-CA-13], Rep. Moolenaar, John R. [R-MI-2], Rep. Jackson, Ronny [R-TX-13], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Magaziner, Seth [D-RI-2], Rep. Sorensen, Eric [D-IL-17], Rep. Harder, Josh [D-CA-9], Rep. Schmidt, Derek [R-KS-2], Rep. Pappas, Chris [D-NH-1], Rep. Yakym, Rudy [R-IN-2], Rep. Shreve, Jefferson [R-IN-6], Rep. Wied, Tony [R-WI-8], Rep. McBride, Sarah [D-DE-At Large], Rep. Bera, Ami [D-CA-6] and 11 more
Recent Actions
- 2025-03-27: Referred to the House Committee on Ways and Means.
- 2025-03-27: Introduced in House
- 2025-03-27: Introduced in House
Bill Versions
- Rural Veterinary Workforce Act — issued 2025-03-27 — PDF (2 pages)