ice for which payments were made to the individual 
under this section. 
‘‘(k) FUND REGARDING USE OF AMOUNTS RECOV-
ERED FOR CONTRACT BREACH TO REPLACE SERVICES 
LOST AS RESULT OF BREACH.— 
‘‘(1) ESTABLISHMENT OF FUND.—There is es-
tablished in the Treasury of the United States a 
fund to be known as the Substance Use Disorder 
Treatment and Behavioral and Mental Health Work-
force Scholarship Program Replacement Fund (in 
this subsection referred to as the ‘Fund’). The Fund 
shall consist of such amounts as may be appro-
priated under paragraph (2) to the Fund. Amounts 
appropriated for the Fund shall remain available 
until expended. 
‘‘(2) AUTHORIZATION OF APPROPRIATIONS TO 
FUND.—For each fiscal year, there is authorized to 
be appropriated to the Fund an amount equal to the 
sum of— 
‘‘(A) the amount collected during the pre-
ceding fiscal year by the Federal Government 
pursuant to the liability of individuals under 
subsection (j) for the breach of contracts en-
tered into under this section; and 
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‘‘(B) the aggregate of the amount of inter-
est accruing during the preceding fiscal year on 
obligations held in the Fund pursuant to para-
graph (4) and the amount of proceeds from the 
sale or redemption of such obligations during 
such fiscal year. 
‘‘(3) USE OF FUND.— 
‘‘(A) PAYMENTS TO CERTAIN HEALTH FA-
CILITIES.—Amounts in the Fund and available 
pursuant to appropriations Acts may, subject to 
subparagraph (B), be expended by the Sec-
retary to make payments to any entity that has 
a need for a health professional to provide sub-
stance use disorder treatment and behavioral 
and mental health services as a result of the 
breach by an individual of a contract entered 
into under this section. 
‘‘(B) PURPOSE OF PAYMENTS.—An entity 
receiving payments pursuant to subparagraph 
(A) may expend the payments to recruit and 
employ a health professional to provide sub-
stance use disorder treatment and behavioral 
and mental health services to patients of the 
entity, or to enter into a contract with such a 
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professional to provide the services to the pa-
tients. 
‘‘(4) INVESTMENT.— 
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall invest such amounts of the Fund 
as such Secretary determines are not required 
to meet current withdrawals from the Fund. 
Such investments may be made only in interest- 
bearing obligations of the United States. For 
such purpose, such obligations may be acquired 
on original issue at the issue price, or by pur-
chase of outstanding obligations at the market 
price. 
‘‘(B) SALE OF OBLIGATIONS.—Any obliga-
tion acquired by the Fund may be sold by the 
Secretary of the Treasury at the market price. 
‘‘(l) COVERED EMPLOYMENT DEFINED.—In this sec-
tion, the term ‘covered employment’ means— 
‘‘(1) full-time employment (including a fellow-
ship) where the primary intent and function of the 
position is the direct treatment or recovery support 
of patients with or in recovery from a substance use, 
behavioral health, or mental health disorder; and 
‘‘(2) may include employment as a physician 
(with a degree of doctor of medicine or doctor of os-
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teopathy), a psychiatric nurse, a social worker, a 
marriage and family therapist, a mental health coun-
selor, an addiction counselor, an occupational thera-
pist, a psychologist, a psychiatrist, a child and ado-
lescent psychiatrist, or a neurologist. 
‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$75,000,000 for each of fiscal years 2026 through 2030.’’. 
(b) EXCLUSION OF SCHOLARSHIP FROM GROSS IN-
COME OF THE RECIPIENT.— 
(1) IN GENERAL.—Section 117(c)(2) of the In-
ternal Revenue Code of 1986 is amended by striking 
‘‘or’’ at the end of subparagraph (B), by striking the 
period at the end of subparagraph (C) and inserting 
‘‘, or’’, and by adding at the end the following new 
subparagraph: 
‘‘(D) section 782 of the Public Health 
Service Act.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this section shall apply to taxable years ending 
after the date of the enactment of this Act. 
Æ 
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