II 

118TH CONGRESS 

1ST SESSION S. 940 

To establish a demonstration program to provide payments on eligible loans 

for individuals who are eligible for the National Health Service Corps 

Loan Repayment Program. 

IN THE SENATE OF THE UNITED STATES 

MARCH 22, 2023 

Mrs. BLACKBURN (for herself, Mr. DURBIN, Mrs. CAPITO, Ms. ROSEN, Ms. 

SMITH, and Ms. MURKOWSKI) introduced the following bill; which was 

read twice and referred to the Committee on Health, Education, Labor, 

and Pensions 

A BILL 

To establish a demonstration program to provide payments 

on eligible loans for individuals who are eligible for the 

National Health Service Corps Loan Repayment Program. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rural America Health 

5 Corps Act’’. 


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1 SEC. 2. NATIONAL HEALTH SERVICE CORPS RURAL PRO2 VIDER LOAN REPAYMENT DEMONSTRATION 

3 PROGRAM. 

4 (a) IN GENERAL.— 

5 (1) ESTABLISHMENT.—The Secretary of Health 

6 and Human Services (referred to in this section as 

7 the ‘‘Secretary’’) shall establish a demonstration 

8 program to provide payments on the principal of and 

9 interest on any eligible loan for eligible individuals 

10 described in paragraph (2). 

11 (2) ELIGIBLE INDIVIDUALS.—To be eligible for 

12 payments under the program under this section, an 

13 individual shall— 

14 (A) be eligible to participate in the Loan 

15 Repayment Program under section 338B of the 

16 Public Health Service Act (42 U.S.C. 254l–1), 

17 but not be participating in such Loan Repay18 ment Program; and 

19 (B) agree to the requirements described in 

20 subsection (b)(1). 

21 (b) PROCEDURE.— 

22 (1) REQUIREMENTS.—To be eligible to receive 

23 assistance under this section, an eligible individual 

24 shall— 

25 (A) comply with all rules and requirements 

26 described in section 338B of the Public Health 


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1 Service Act (42 U.S.C. 254l–1), except for the 

2 period of obligated service described in sub3 section (f)(1)(B)(iv) of such section and as pro4 vided in paragraphs (2) and (3) of this sub5 section; and 

6 (B) agree to a period of obligated service 

7 of 5 years of full-time employment in a health 

8 professional shortage area that is a rural area. 

9 (2) PAYMENTS.— 

10 (A) SERVICE IN A RURAL AREA.—The Sec11 retary shall pay— 

12 (i) for each year of obligated service 

13 by an individual pursuant to an agreement 

under this section, 1 14 ⁄5 of the principal of 

15 and interest on each eligible loan, as deter16 mined by the Secretary, which is out17 standing on the date the individual began 

18 service pursuant to the agreement; and 

19 (ii) for completion of the fifth and 

20 final year of such service, the remainder of 

21 such principal and interest. 

22 (B) MAXIMUM AMOUNT.—The total 

23 amount of payments under this section to any 

24 individual shall not exceed $200,000. 

25 (3) BREACH.— 


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1 (A) LIQUIDATED DAMAGES FORMULA.— 

2 The Secretary may establish a liquidated dam3 ages formula to be used in the event of a 

4 breach of an agreement entered into under this 

5 section. 

6 (B) LIMITATION.—The failure by an indi7 vidual to complete the full period of service obli8 gated pursuant to such an agreement, taken 

9 alone, shall not constitute a breach of such 

10 agreement, so long as the individual completed 

11 in good faith the years of service for which pay12 ments were made to the individual under this 

13 section. 

14 (4) APPLICABILITY OF LOAN REPAYMENT PRO15 GRAM PROVISIONS.—Except as otherwise provided in 

16 this section, all provisions in subparts II and III of 

17 title III of the Public Health Service Act (42 U.S.C. 

18 241 et seq.) pertaining to the administration of, and 

19 other requirements with respect to, the Loan Repay20 ment Program described in section 338B of such 

21 Act (42 U.S.C. 254l–1) shall apply to the dem22 onstration program under this section. 

23 (c) DESIGNATIONS.—The demonstration program 

24 under this section, and any providers who are selected to 

25 participate in such program, shall not be considered by 


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1 the Secretary in the designation of health professional 

2 shortage areas under section 332 of the Public Health 

3 Service Act (42 U.S.C. 254e) during fiscal years 2022 

4 through 2026. 

5 (d) REPORT.—Not later than 5 years after the date 

6 of enactment of this Act, the Secretary shall submit to 

7 the Committee on Health, Education, Labor, and Pen8 sions of the Senate and the Committee on Energy and 

9 Commerce of the House of Representatives a report that 

10 evaluates the demonstration program established under 

11 this section, including the effects of such program on 

12 health care access in rural areas. 

13 (e) HEALTH PROFESSIONAL SHORTAGE AREA.—In 

14 this section, the term ‘‘health professional shortage area’’ 

15 has the meaning given such term in section 332 of the 

16 Public Health Service Act (42 U.S.C. 254e). 

17 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section, 

19 $50,000,000 for each of fiscal years 2024 through 2028. 

Æ 


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