STAR Plus Scholarship Act

Bill Number

H.R. 3655

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Health

Status

Introduced

Latest Action

2025-05-29: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-06-12T15:33:56Z

AI-Generated Summary

Purpose

The STAR Plus Scholarship Act (H.R. 3655) aims to address shortages in the workforce for substance use disorder (SUD) treatment and behavioral and mental health services by creating a federal scholarship program. It encourages students to pursue careers in these fields by offering financial support in exchange for committing to work in underserved areas, ultimately improving access to care in regions with high needs, such as those affected by drug overdoses or mental health professional shortages.

Key Provisions

• Establishment of the Program: Adds a new section (782) to the Public Health Service Act, creating the Substance Use Disorder Treatment and Behavioral and Mental Health Workforce Scholarship Program, administered by the Health Resources and Services Administration (HRSA) within the Department of Health and Human Services (HHS). The program provides scholarships to full-time students in accredited programs leading to "covered employment" (roles focused on direct treatment or recovery support for SUD, behavioral health, or mental health disorders, such as physicians, nurses, social workers, counselors, psychologists, and psychiatrists).

• Eligibility and Application: Eligible students must be enrolled in approved courses of study, submit an application, and sign a contract agreeing to the scholarship terms and a service obligation. Applications include clear summaries of rights, liabilities (including breach penalties), and selection factors to ensure transparency and understanding.

• Scholarship Details: Covers tuition, fees, books, lab expenses, and other reasonable educational costs for one or more school years. Payments can go directly to students or schools via contracts. Scholarships are contingent on available funding.

• Service Obligation: Recipients must work full-time in "covered employment" for one year per year of scholarship received, in:
• Mental health professional shortage areas (designated under existing law).
• Counties or municipalities with above-average drug overdose death rates (based on recent Centers for Disease Control and Prevention data).
• Facilities, programs, or clinics identified by the Secretary of HHS as needing mental health professionals.

Service must occur in the U.S., with no more than one year gap between service years. The program encourages continued service post-obligation and offers transition assistance.

• Selection Priorities and Factors: Prioritizes applicants showing strong interest in SUD and mental health services, those likely to stay in shortage areas after service, and individuals from underrepresented groups in these workforces. Other relevant factors, like academic standing, may be considered.

• Breach and Enforcement: Contracts outline damages for breaches (e.g., failing to complete service), using a liquidated damages formula (a pre-agreed penalty amount). However, partial service in good faith (matching scholarship years) does not count as a breach. A dedicated fund in the U.S. Treasury will collect breach recoveries and use them (with appropriations) to help facilities recruit replacement professionals. The fund can invest in U.S. government obligations.

• Additional Supports: Does not count scholarship recipients against federal employment ceilings during training. Schools must distribute program information. Authorizes $75 million annually for fiscal years 2026–2030.

• Tax Treatment: Amends the Internal Revenue Code to exclude scholarship amounts from recipients' gross income (taxable income), effective for tax years after enactment.

Significant Changes to Existing Law

• Public Health Service Act: Inserts a new scholarship program (Section 782) into Part F of Title VII, modeled after existing health workforce programs but specifically tailored to SUD and mental health shortages. It expands service location options to include high-overdose areas and Secretary-designated sites, beyond just traditional shortage designations.

• Internal Revenue Code: Adds a new exclusion under Section 117(c)(2) for these scholarships, aligning them with other qualified education scholarships that are tax-free, preventing recipients from facing tax burdens on the awards.

These changes build on prior laws like the National Health Service Corps scholarships but create a targeted initiative without altering unrelated provisions.

Potential Impacts

• Government Agencies: HRSA and HHS will administer the program, review applications, designate service sites, and manage the breach fund, requiring new administrative resources and annual appropriations. This could strain budgets if funding falls short but promotes efficient use of recoveries to fill workforce gaps.

• Citizens: Increases the supply of trained professionals in underserved areas, potentially improving access to SUD treatment, mental health counseling, and recovery support—especially in rural or high-overdose communities. Patients may see reduced wait times and better care quality, addressing public health crises like the opioid epidemic.

• International Relations: No direct impacts, as the program is limited to U.S.-based service and domestic workforce development.

Overall, it could enhance equity in healthcare access but depends on program uptake and funding levels.

Main Stakeholders Affected

• Students and Trainees: Primary beneficiaries, gaining debt-free education in exchange for service; underrepresented groups (e.g., racial/ethnic minorities in health fields) receive priority.

• Healthcare Professionals and Facilities: SUD treatment centers, mental health clinics, hospitals, and private practices in shortage areas benefit from recruited workers; breaches could temporarily disrupt staffing, offset by the replacement fund.

• Educational Institutions: Accredited schools (e.g., medical, nursing, psychology programs) partner for payments and must promote the program to students.

• Patients and Communities: Individuals in mental health shortage areas or high-overdose regions gain better service access; broader society sees potential reductions in untreated SUD and mental health issues.

• Federal Government: HHS/HRSA handles implementation; taxpayers fund it via appropriations.

Notable Legal, Constitutional, or Political Implications

• Legal: Enforceable contracts with clear breach formulas reduce disputes, but the good-faith partial service exception provides flexibility. The tax exclusion simplifies administration and encourages participation without IRS complications. The replacement fund ensures accountability by redirecting penalties to public benefit, complying with federal fiscal laws (e.g., anti-deficiency rules via contingency clauses).

• Constitutional: Aligns with Congress's spending power to promote general welfare (e.g., public health). No apparent free speech, equal protection, or due process issues, as eligibility is merit- and need-based with transparency requirements.

• Political: Supports bipartisan priorities like combating the opioid crisis and mental health access, potentially appealing across parties. It incentivizes workforce diversity and rural service, but success hinges on funding debates; critics might question costs or effectiveness without strong oversight metrics. No major controversies evident in the bill text.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Salinas, Andrea [D-OR-6]

Cosponsors (3)

Rep. Goldman, Daniel S. [D-NY-10], Rep. Tonko, Paul [D-NY-20], Rep. Brownley, Julia [D-CA-26]

Recent Actions

• 2025-05-29: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-29: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-29: Introduced in House
• 2025-05-29: Introduced in House

Bill Versions

• STAR Plus Scholarship Act — issued 2025-05-29 — PDF (15 pages)