Strengthening Pathways to Health Professions Act

Bill Number

H.R. 593

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-01-21: Referred to the House Committee on Ways and Means.

Last Updated

2025-10-18T08:05:44Z

AI-Generated Summary

Purpose

The Strengthening Pathways to Health Professions Act (H.R. 593) aims to encourage more individuals to enter and serve in health professions, particularly in underserved or health professional shortage areas, by making certain scholarships and loan repayment or forgiveness payments tax-free. This reduces financial barriers for participants in federal and state programs designed to address healthcare workforce shortages.

Key Provisions

• Exclusion of Loan Repayments from Gross Income: Amends Section 108(f)(4) of the Internal Revenue Code (IRC) to exclude from taxable income any payments received under:
• Specific federal loan repayment programs in the Public Health Service Act (PHS Act), including sections 338B(g) (National Health Service Corps), 846(a) (for pediatric subspecialists), 738(a) (for certain research), 775 (for geriatric workforce), and 781 (for mental and behavioral health).
• State programs under PHS Act Section 338I.
• Any other state loan repayment or forgiveness program aimed at improving healthcare access in underserved areas, as defined by the state.
• Exclusion of Certain Scholarships from Gross Income: Amends IRC Section 117(c)(2) to add exclusions for scholarships provided under:
• PHS Act Section 846 (pediatric workforce).
• PHS Act Section 338K (National Health Service Corps scholarships).
• Section 10 of the Native Hawaiian Health Care Improvement Act (scholarships for Native Hawaiian health professionals).
• Effective Date: Applies to amounts received in taxable years beginning after the date of enactment.

Significant Changes to Existing Law

• Expands current IRC exclusions under Section 108(f)(4), which previously covered only some federal loan repayment programs, to now include additional federal programs, all qualifying state programs under PHS Act Section 338I, and broader state initiatives for underserved areas.
• Broadens IRC Section 117(c)(2) scholarship exclusions by inserting new categories, shifting existing subparagraphs, to cover previously taxable scholarships in the specified health-focused programs. This prevents these educational supports from being treated as taxable income, unlike general scholarships that may be taxed if not used for qualified expenses.

Potential Impacts

• On Government Agencies: The Internal Revenue Service (IRS) will see reduced tax revenue from these exclusions, potentially shifting administrative burdens to verify program eligibility. Federal agencies like the Department of Health and Human Services (HHS) may benefit from easier recruitment into public health programs.
• On Citizens: Health professionals participating in these programs will face lower tax liabilities, making it more financially viable to serve in rural, low-income, or shortage areas, potentially improving healthcare access for underserved populations. Native Hawaiian communities may see targeted gains in health workforce development.
• On International Relations: No direct impacts, as the bill focuses on domestic U.S. healthcare and tax policy.

Main Stakeholders Affected

• Health Professionals: Primary beneficiaries, including doctors, nurses, pediatric specialists, geriatric providers, mental health workers, and Native Hawaiian health practitioners, who receive tax relief on scholarships and loan payments.
• Federal and State Governments: HHS and state health departments administering these programs will likely experience increased participation, aiding public health goals.
• Underserved Communities: Residents in health professional shortage areas (e.g., rural or low-income regions) stand to gain from better access to care.
• Taxpayers and IRS: Indirectly affected through forgone tax revenue and compliance needs.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens tax incentives for public health initiatives without altering core IRC structures; ensures consistency with existing exclusions for similar programs (e.g., National Health Service Corps). States gain flexibility in defining "underserved areas" for their programs, promoting federal-state coordination under the PHS Act.
• Constitutional: No apparent conflicts; aligns with Congress's taxing and spending powers under Article I, supporting the general welfare through healthcare workforce development.
• Political: Bipartisan sponsorship (Democrats and Republicans) signals broad support for addressing healthcare shortages. Could set precedent for further tax exemptions in workforce programs, influencing future budget and health policy debates, though it may raise concerns about federal tax expenditures amid fiscal pressures.

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

Sponsor

Rep. Tokuda, Jill N. [D-HI-2]

Cosponsors (7)

Rep. Miller, Carol D. [R-WV-1], Rep. Panetta, Jimmy [D-CA-19], Rep. Steube, W. Gregory [R-FL-17], Rep. McBride, Sarah [D-DE-At Large], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Suozzi, Thomas R. [D-NY-3], Del. Moylan, James C. [R-GU-At Large]

Recent Actions

• 2025-01-21: Referred to the House Committee on Ways and Means.
• 2025-01-21: Introduced in House
• 2025-01-21: Introduced in House

Bill Versions

• Strengthening Pathways to Health Professions Act — issued 2025-01-21 — PDF (3 pages)