To amend title 38, United States Code, to increase the number of health care professionals employed by the Department of Veterans Affairs by improving the Department of Veterans Affairs Education Debt Reduction Program.

To amend title 38, United States Code, to increase the number of health care professionals employed by the Department of Veterans Affairs by improving the Department of Veterans Affairs Education Debt Reduction Program. 1. Improvement of Department of Veterans Affairs Education Debt Reduction Program (a) Additional loans covered Section 7682(a)(2) of title 38, United States Code, is amended by striking a course of education or training which led to a degree that qualified the individual for the position referred to in paragraph (1) the undergraduate or graduate education of the individual (or both) (b) Increase of amount of assistance Subsection (d) of section 7683 of such title is amended— (1) in paragraph (1)— (A) by striking $120,000 $240,000 (B) by striking $24,000 $60,000 (2) in paragraph (2)(B), by adding at the end the following new sentence: The Secretary shall select the locations covered by the preceding sentence pursuant to a process established by the Secretary that is similar to the process used to determine health professional shortage areas under section 332 of the Public Health Service Act ( 42 U.S.C. 254e (c) Addressing tax liability Such section is further amended by adding at the end the following new subsection: (e) Tax liability For the purpose of providing reimbursements for tax liability resulting from payments under this subchapter on behalf of an individual, the Secretary— (1) shall, in addition to such payments, make payments to the individual in an amount equal to 39 percent of the total amount of loan repayments made for the taxable year involved; and (2) may make such additional payments as the Secretary determines to be appropriate with respect to such purpose. . (d) Applicability The amendments made by this Act shall apply with respect to individuals who first participate in the Department of Veterans Affairs Education Debt Reduction Program under subchapter VII of chapter 76

Summary: This bill makes a Veterans Health Administration employee who provides patient care services in a position for which recruitment or retention of qualified personnel is difficult eligible for undergraduate and graduate education loan reduction under the Education Debt Reduction Program. (Currently, such loan reduction is available only for a course or training leading to a degree that qualifies the individual for a patient care services position.) The bill increases the five-year amount of education debt reduction payments made to or for a program participant from $120,000 to $240,000, of which not more than $60,000 (currently, $24,000) may be made in each year. The VA shall select program locations pursuant to a process that is similar to the process used to determine public health professional shortage areas. For purposes of providing tax liability reimbursements resulting from payments on behalf of an individual, the Department of Veterans Affairs (VA): (1) shall, in addition to such payments, make payments in an amount equal to 39% of the total amount of loan repayments made for the taxable year; and (2) may make such additional payments as the VA determines appropriate.