STAR Plus Scholarship Act
The STAR Plus Scholarship Act would create a new federal program under the Public Health Service Act to train more substance use disorder (SUD) treatment and behavioral/mental health professionals. Through the Substance Use Disorder Treatment and Behavioral and Mental Health Workforce Scholarship Program, the Secretary (through HRSA) would award scholarships to eligible students pursuing approved health-profession programs. In exchange, participants would commit to an obligated period of service in designated mental health shortage areas or in jurisdictions with high overdose death rates. The bill lays out eligibility, contract terms, priorities to recruit from underrepresented groups, and a framework for funding, compliance, and replacement if a scholar breaches the contract. It also includes a tax provision to exclude scholarship amounts from gross income and authorizes annual funding of $75 million for 2026–2030. A dedicated Replacement Fund would finance recruitment or replacement of personnel if a breach occurs, and funds are invested in U.S. Treasury securities. In short, the bill seeks to expand the pipeline of mental health and SUD treatment professionals by providing tuition and living-expense support in exchange for service in areas with high need, while creating mechanisms to recoup costs if scholars do not complete their obligated service.
Key Points
- 1Establishes the Substance Use Disorder Treatment and Behavioral and Mental Health Workforce Scholarship Program within the Public Health Service Act to ensure an adequate supply of qualified professionals.
- 2Eligibility and contract requirements: full-time enrollment in an accredited institution in a course leading to covered employment; submission of an application and a written contract agreeing to obligated service in a mental health professional shortage area or other designated high-need areas; maintain satisfactory academic progress.
- 3Obligated service: one year of full-time, covered employment for each school year funded by the scholarship, in designated mental health shortage areas or locations with higher-than-average overdose death rates (with other designated sites as determined by the Secretary).
- 4Funding and financing: authorized $75 million per fiscal year from 2026 through 2030; includes a Replacement Fund funded by breach-liability recoveries and interest, used to recruit/replace health professionals who breach contracts.
- 5Breach and remedies: the Secretary can establish a liquidated damages framework for contract breaches; failure to complete the full period of service in isolation does not constitute a breach if the individual completes the years of service for which payments were made.
- 6Tax treatment: scholarship amounts would be excluded from gross income under the Internal Revenue Code, aligning with other qualified educational assistance.
- 7Administration and equity: the Secretary must provide clear information about rights and liabilities; priority in awarding contracts is given to applicants with greater likelihood of remaining in shortage areas and to individuals from underrepresented groups.
- 8Employment ceilings: participants under this program are not counted toward the Department’s employment ceilings while in training.
- 9Covered employment: broadly defines eligible roles as direct treatment or recovery-support positions in SUD/behavioral and mental health, including various professionals such as physicians, psychiatrists, social workers, counselors, and related clinicians.