Rural America Health Corps Act
The Rural America Health Corps Act creates a five-year demonstration program run by the Department of Health and Human Services. The program provides loan payments to individuals who are eligible for the National Health Service Corps (NHSC) Loan Repayment Program but are not currently participating in it. Eligible participants must agree to five years of full-time service in a rural health professional shortage area. Each year of service results in an annual payment equal to 1/5 of the borrower’s loan principal and interest outstanding at the start of service, with a final year payment covering the remaining balance. The total lifetime payment per participant is capped at $200,000. The program would operate with a $50 million annual appropriation from 2026 through 2030. The act also specifies that program participants and the demonstration shall not count toward changing health professional shortage area designations during fiscal years 2026–2030, and requires a comprehensive evaluation report within five years. Program provisions largely mirror existing NHSC loan repayment rules, with some exceptions for the demonstration.
Key Points
- 1Establishes a National Health Service Corps Rural Provider Loan Repayment Demonstration Program to provide loan payments for eligible individuals.
- 2Eligibility: individuals must be eligible for the NHSC Loan Repayment Program but not currently participating, and must commit to 5 years of full-time service in a rural health professional shortage area.
- 3Payment structure: each year of obligated service pays 1/5 of the principal and interest on eligible loans (outstanding at the start of service); upon completion of the 5th year, the remainder is paid. Total payments per individual capped at $200,000.
- 4Breach provisions: the Secretary may include a liquidated damages formula for breach, but not completing the full period does not automatically constitute a breach if the individual completed the years for which payments were made in good faith.
- 5Administration: applies NHSC Loan Repayment Program provisions to the demonstration program except as specifically provided.
- 6Designation impact: participating providers and the demonstration will not affect HPSA designations for fiscal years 2026–2030.
- 7Reporting and evaluation: a report evaluating the program’s effects on rural health care access due within five years of enactment.
- 8Funding: authorizes $50 million per year for 2026–2030 to carry out the section.