rolled, for the payment to the educational institution 
of the amounts of tuition and other reasonable edu-
cational expenses described in subsection (d)(3). 
‘‘(2) 
EMPLOYMENT
CEILINGS.—Notwith-
standing any other provision of law, individuals who 
have entered into written contracts with the Sec-
retary under this section, while undergoing academic 
training, shall not be counted against any employ-
ment ceiling affecting the Department or any other 
Federal agency. 
‘‘(g) BREACH
OF CONTRACT.—An individual who 
fails to comply with the contract entered into under sub-
section (d) shall be subject to the same financial penalties 
as provided for under section 338E for breaches of schol-
arship contracts under sections 338A. 
‘‘SEC. 775-1. HURRICANE KATRINA AND RITA PUBLIC 
HEALTH WORKFORCE RECOVERY LOAN RE-
PAYMENT PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish the Hurricanes Katrina and Rita Public Health Work-
force Loan Repayment Program (referred to in this sec-
tion as the ‘Program’) to ensure an adequate supply of 
public health professionals to eliminate critical public 
health preparedness workforce shortages in Federal, 
State, local, and public health agencies, organizations, and 
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associations in areas directly affected by Hurricane 
Katrina or Rita. 
‘‘(b) ELIGIBILITY.—To be eligible to participate in 
the Program, an individual shall— 
‘‘(1)(A) be accepted for enrollment, or be en-
rolled, as a full-time or part-time student in an ac-
credited academic educational institution in a State 
or territory in the final year of a course of study or 
program offered by that institution leading to a 
health professions degree or certificate, which may 
include a degree (graduate, undergraduate, or asso-
ciate) or certificate relating to laboratory sciences, 
epidemiology, environmental health, health commu-
nications, health education and behavioral sciences, 
information sciences, or public administration; or 
‘‘(B) have graduated, within 10 years, from an 
accredited educational institution in a State or terri-
tory and received a health professions degree (grad-
uate, undergraduate, or associate) or certificate, 
which may include a degree (graduate, under-
graduate, or associate) or certificate related to lab-
oratory sciences, epidemiology, environmental health, 
health communications, health education and behav-
ioral sciences, psychology, physical therapy, geron-
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tology, sociology, health policy, social work, informa-
tion sciences, or public administration; 
‘‘(2)(A) in the case of an individual described in 
paragraph (1)(A), have accepted employment with a 
Federal, State, local, or tribal public health agency, 
as recognized by the Secretary, to commence upon 
graduation; or 
‘‘(B) in the case of an individual described in 
paragraph (1)(B), be employed by, or have accepted 
employment with, a Federal, State, or local public 
health agency, organization, or association, as recog-
nized by the Secretary; 
‘‘(3) be a United States citizen; 
‘‘(4) submit an application to the Secretary to 
participate in the Program; and 
‘‘(5) sign and submit to the Secretary, at the 
time of the submittal of such application, a written 
contract (described in subsection (d)) to serve for 
the applicable period of obligated service in the full- 
time employment of a Federal, State, local, or tribal 
public health agency. 
‘‘(c) DISSEMINATION OF INFORMATION.— 
‘‘(1) APPLICATION
AND
CONTRACT
FORMS.— 
The Secretary shall disseminate application forms 
and contract forms to individuals desiring to partici-
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pate in the Program. The Secretary shall include 
with such forms— 
‘‘(A) a fair summary of the rights and li-
abilities of an individual whose application is 
approved (and whose contract is accepted) by 
the Secretary, including in the summary a clear 
explanation of the damages to which the United 
States is entitled to recover in the case of the 
individual’s breach of the contract; and 
‘‘(B) information relating to the service ob-
ligation and such other information as may be 
necessary for the individual to understand the 
individual’s prospective participation in the Pro-
gram. 
‘‘(2) INFORMATION
FOR
SCHOOLS.—The Sec-
retary shall distribute to health professions schools 
and other appropriate accredited academic institu-
tions, health professions schools, Historically Black 
Colleges and Universities, Hispanic serving Institu-
tions, Tribal Colleges and Universities, Asian-Amer-
ican and Pacific Islander-serving institutions, sec-
ondary educational institutions, and relevant Fed-
eral, State, and local public health agencies, mate-
rials providing information on the Program and 
shall encourage such schools, institutions, and agen-
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cies to disseminate such materials to potentially eli-
gible students. 
‘‘(3) UNDERSTANDABILITY, AND TIMING.—The 
application form, contract form, and all other infor-
mation furnished by the Secretary under this section 
shall— 
‘‘(A) be written in a manner calculated to 
be understood by the average individual apply-
ing to participate in the Program; and 
‘‘(B) be made available by the Secretary on 
a date sufficiently early to ensure that such in-
dividuals have adequate time to carefully review 
and evaluate such forms and information. 
‘‘(4) 
SPECIAL
CONSIDERATION.—Individuals 
who are eligible under subsection (b) shall be pro-
vided special consideration if the individuals are 
from medically underserved communities, as defined 
in section 799B of the Public Health Service Act 
(42 U.S.C. 295p). 
‘‘(d) CONTRACT.—The written contract (referred to 
in this section) between the Secretary and an individual 
shall contain— 
‘‘(1) an agreement on the part of the Secretary 
that the Secretary will repay on behalf of the indi-
vidual loans incurred by the individual in the pursuit 
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of the relevant public health preparedness workforce 
educational degree or certificate in accordance with 
the terms of the contract; 
‘‘(2) an agreement on the part of the individual 
that the individual will serve, immediately upon 
graduation in the case of an individual described in 
subsection (b)(1)(A), or in the case of an individual 
described in subsection (b)(1)(B) will continue to 
serve, in the full-time employment of a Federal, 
State, or local public health agency, organization, or 
association in a position related to the course of 
study or program for which the contract was award-
ed for a period of time (referred to in this section 
as the ‘period of obligated service’) equal to the 
greater of— 
‘‘(A) 4 years; or 
‘‘(B) such longer period of time as deter-
mined appropriate by the Secretary and the in-
dividual; 
‘‘(3) an agreement, as appropriate, on the part 
of the individual to relocate for the entire period of 
obligated service to a political jurisdiction designated 
by the Secretary to be a Hurricane Katrina or Rita 
priority service area in exchange for an additional 
loan repayment incentive amount that does not ex-
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ceed 30 percent of the individual’s eligible loan re-
payment award per academic year such that the 
total of the loan repayment and the incentive 
amount shall not exceed 1⁄2 of the eligible loan bal-
ance per year; 
‘‘(4) in the case of an individual described in 
subsection (b)(1)(A) who is in the final year of study 
and who has accepted employment with a Federal, 
State, or local public health agency, organization, or 
association upon graduation, an agreement on the 
part of the individual to complete the education or 
training, maintain an acceptable level of academic 
standing (as determined by the education institution 
offering the course of study or training), and com-
plete the period of obligated service; 
‘‘(5) a provision that any financial obligation of 
the United States arising out of a contract entered 
into under this section and any obligation of the in-
dividual that is conditioned thereon, is contingent on 
funds being appropriated for loan repayments under 
this section; 
‘‘(6) a statement of the damages to which the 
United States is entitled under this section for the 
individual’s breach of the contract; and 
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‘‘(7) such other statements of the rights and li-
abilities of the Secretary and of the individual, not 
inconsistent with this section. 
‘‘(e) PAYMENTS.— 
‘‘(1) IN GENERAL.—A loan repayment provided 
for an individual under a written contract under the 
Program shall consist of payment, in accordance 
with paragraph (2), on behalf of the individual of 
the principal, interest, and related expenses on gov-
ernment and commercial loans received by the indi-
vidual regarding the undergraduate or graduate (or 
both) education of the individual, which loans were 
made for— 
‘‘(A) tuition expenses; or 
‘‘(B) any other reasonable educational ex-
penses, including fees, books, and laboratory ex-
penses, incurred by the individual. 
‘‘(2) PAYMENTS FOR YEARS SERVED.— 
‘‘(A) IN GENERAL.—For each year of obli-
gated service that an individual contracts to 
serve under subsection (d) the Secretary may 
pay up to $35,000 on behalf of the individual 
for loans described in paragraph (1). With re-
spect to participants under the Program whose 
total eligible loans are less than $125,000, the 
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Secretary shall pay an amount that does not ex-
ceed 1⁄2 of the eligible loan balance for each 
year of obligated service of the individual. 
‘‘(B) REPAYMENT
SCHEDULE.—Any ar-
rangement made by the Secretary for the mak-
ing of loan repayments in accordance with this 
subsection shall provide that any repayments 
for a year of obligated service shall be made no 
later than the end of the fiscal year in which 
the individual completes such year of service. 
‘‘(3) TAX LIABILITY.—For the purpose of pro-
viding reimbursements for tax liability resulting 
from payments under paragraph (2) on behalf of an 
individual— 
‘‘(A) the Secretary shall, in addition to 
such payments, make payments to the indi-
vidual in an amount not to exceed 39 percent 
of the total amount of loan repayments made 
for the taxable year involved; and 
‘‘(B) may make such additional payments 
as the Secretary determines to be appropriate 
with respect to such purpose. 
‘‘(4) PAYMENT
SCHEDULE.—The Secretary 
may enter into an agreement with the holder of any 
loan for which payments are made under the Pro-
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gram to establish a schedule for the making of such 
payments. 
‘‘(f) POSTPONING OBLIGATED SERVICE.—With re-
spect to an individual receiving a degree or certificate from 
a school of medicine, public health, nursing, osteopathic 
medicine, dentistry, veterinary medicine, optometry, po-
diatry, pharmacy, psychology, or social work, the date of 
the initiation of the period of obligated service may be 
postponed, upon the submission by the individual of a peti-
tion for such postponement and approval by the Secretary, 
to the date on which the individual completes an approved 
internship, residency, or other relevant public health pre-
paredness advanced training program. 
‘‘(g) ADMINISTRATIVE PROVISIONS.—. 
‘‘(1) HIRING PRIORITY.—Notwithstanding any 
other provision of law, Federal, State, local, and 
tribal public health agencies may give hiring priority 
to any individual who has qualified for and is willing 
to execute a contract to participate in the Program. 
‘‘(2) 
EMPLOYMENT
CEILINGS.—Notwith-
standing any other provision of law, individuals who 
have entered into written contracts with the Sec-
retary under this section, who are serving as full- 
time employees of a State or local public health 
agency, or who are in the last year of public health 
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