I 
119TH CONGRESS 
1ST SESSION H. R. 1127 
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 HOUSE OF REPRESENTATIVES 
FEBRUARY 7, 2025 
Mr. KUSTOFF (for himself and Ms. BUDZINSKI) introduced the following bill; 
which was referred to the Committee on Energy and Commerce 
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 Pro-
gram. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rural America Health 
Corps Act’’. 
VerDate Sep 11 2014 
06:28 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1127.IH
H1127
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SEC. 2. NATIONAL HEALTH SERVICE CORPS RURAL PRO-
VIDER LOAN REPAYMENT DEMONSTRATION 
PROGRAM. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT.—The Secretary of Health 
and Human Services (referred to in this section as 
the ‘‘Secretary’’) shall establish a demonstration 
program to provide payments on the principal of and 
interest on any eligible loan for eligible individuals 
described in paragraph (2). 
(2) ELIGIBLE INDIVIDUALS.—To be eligible for 
payments under the program under this section, an 
individual shall— 
(A) be eligible to participate in the Loan 
Repayment Program under section 338B of the 
Public Health Service Act (42 U.S.C. 254l–1), 
but not be participating in such Loan Repay-
ment Program; and 
(B) agree to the requirements described in 
subsection (b)(1). 
(b) PROCEDURE.— 
(1) REQUIREMENTS.—To be eligible to receive 
assistance under this section, an eligible individual 
shall— 
(A) comply with all rules and requirements 
described in section 338B of the Public Health 
VerDate Sep 11 2014 
06:28 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1127.IH
H1127
kjohnson on DSK7ZCZBW3PROD with $$_JOB
Service Act (42 U.S.C. 254l–1), except for the 
period of obligated service described in sub-
section (f)(1)(B)(iv) of such section and as pro-
vided in paragraphs (2) and (3) of this sub-
section; and 
(B) agree to a period of obligated service 
of 5 years of full-time employment in a health 
professional shortage area that is a rural area. 
(2) PAYMENTS.— 
(A) SERVICE IN A RURAL AREA.—The Sec-
retary shall pay— 
(i) for each year of obligated service 
by an individual pursuant to an agreement 
under this section, 1⁄5 of the principal of 
and interest on each eligible loan, as deter-
mined by the Secretary, which is out-
standing on the date the individual began 
service pursuant to the agreement; and 
(ii) for completion of the fifth and 
final year of such service, the remainder of 
such principal and interest. 
(B) 
MAXIMUM
AMOUNT.—The 
total 
amount of payments under this section to any 
individual shall not exceed $200,000. 
(3) BREACH.— 
VerDate Sep 11 2014 
06:28 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1127.IH
H1127
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(A) LIQUIDATED
DAMAGES
FORMULA.— 
The Secretary may establish a liquidated dam-
ages formula to be used in the event of a 
breach of an agreement entered into under this 
section. 
(B) LIMITATION.—The failure by an indi-
vidual to complete the full period of service obli-
gated pursuant to such an agreement, taken 
alone, shall not constitute a breach of such 
agreement, so long as the individual completed 
in good faith the years of service for which pay-
ments were made to the individual under this 
section. 
(4) APPLICABILITY OF LOAN REPAYMENT PRO-
GRAM PROVISIONS.—Except as otherwise provided in 
this section, all provisions in subparts II and III of 
title III of the Public Health Service Act (42 U.S.C. 
241 et seq.) pertaining to the administration of, and 
other requirements with respect to, the Loan Repay-
ment Program described in section 338B of such 
Act (42 U.S.C. 254l–1) shall apply to the dem-
onstration program under this section. 
(c) DESIGNATIONS.—The demonstration program 
under this section, and any providers who are selected to 
participate in such program, shall not be considered by 
VerDate Sep 11 2014 
06:28 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1127.IH
H1127
kjohnson on DSK7ZCZBW3PROD with $$_JOB