Resident Physician Shortage Reduction Act of 2025

The Resident Physician Shortage Reduction Act of 2025 would significantly expand the number of residency positions funded through the Medicare program and create new rural-focused training options. The core idea is to increase the number of physician training slots from 2026 through 2032 (with a target to distribute up to 14,000 additional residency positions over that period) by allowing the Secretary of Health and Human Services to raise the “resident limit” for qualifying hospitals that apply and meet certain requirements. The bill also directs new programs to promote rural residency training and workforce diversity, and it requires a study on effective strategies to diversify the health workforce. It would also adjust Medicare’s indirect teaching payments to reflect these additional positions and authorize targeted funding for rural residency planning and development. If enacted, the measure could shift where new residents train (favoring rural areas and shortage areas) and expand capacity at hospitals that currently operate above their resident caps, while imposing conditions (such as training mix and agreements to increase total residency slots). The plan includes a multi-year funding and distribution process (seven application rounds) and a framework to ensure a portion of new slots go to rural and underserved settings through grants and technical assistance.