SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prosecutors and Defenders Incentive 
Act of 2005''.

SEC. 2. LOAN REPAYMENT FOR PROSECUTORS AND DEFENDERS.

    Title I of the Omnibus Crime Control and Safe Streets Act of 1968 
(42 U.S.C. 3711 et seq.) is amended by adding at the end the following:

     ``PART HH--LOAN REPAYMENT FOR PROSECUTORS AND PUBLIC DEFENDERS

``SEC. 2901. GRANT AUTHORIZATION.

    ``(a) Purpose.--The purpose of this section is to encourage 
qualified individuals to enter and continue employment as prosecutors 
and public defenders.
    ``(b) Definitions.--In this section:
            ``(1) Prosecutor.--The term `prosecutor' means a full-time 
        employee of a State or local agency who--
                    ``(A) is continually licensed to practice law; and
                    ``(B) prosecutes criminal cases at the State or 
                local level.
            ``(2) Public defender.--The term `public defender' means an 
        attorney who--
                    ``(A) is continually licensed to practice law; and
                    ``(B) is--
                            ``(i) a full-time employee of a State or 
                        local agency or a nonprofit organization 
                        operating under a contract with a State or unit 
                        of local government, that provides legal 
                        representation to indigent persons in criminal 
                        cases; or
                            ``(ii) employed as a full-time Federal 
                        defender attorney in a defender organization 
                        established pursuant to subsection (g) of 
                        section 3006A of title 18, United States Code, 
                        that provides legal representation to indigent 
                        persons in criminal cases.
            ``(3) Student loan.--The term `student loan' means--
                    ``(A) a loan made, insured, or guaranteed under 
                part B of title IV of the Higher Education Act of 1965 
                (20 U.S.C. 1071 et seq.);
                    ``(B) a loan made under part D or E of title IV of 
                the Higher Education Act of 1965 (20 U.S.C. 1087a et 
                seq. and 1087aa et seq.); and
                    ``(C) a loan made under section 428C or 455(g) of 
                the Higher Education Act of 1965 (20 U.S.C. 1078-3 and 
                1087e(g)) to the extent that such loan was used to 
                repay a Federal Direct Stafford Loan, a Federal Direct 
                Unsubsidized Stafford Loan, or a loan made under 
                section 428 or 428H of such Act.
    ``(c) Program Authorized.--The Attorney General shall establish a 
program by which the Department of Justice shall assume the obligation 
to repay a student loan, by direct payments on behalf of a borrower to 
the holder of such loan, in accordance with subsection (d), for any 
borrower who--
            ``(1) is employed as a prosecutor or public defender; and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.
    ``(d) Terms of Agreement.--
            ``(1) In general.--To be eligible to receive repayment 
        benefits under subsection (c), a borrower shall enter into a 
        written agreement that specifies that--
                    ``(A) the borrower will remain employed as a 
                prosecutor or public defender for a required period of 
                service of not less than 3 years, unless involuntarily 
                separated from that employment;
                    ``(B) if the borrower is involuntarily separated 
                from employment on account of misconduct, or 
                voluntarily separates from employment, before the end 
                of the period specified in the agreement, the borrower 
                will repay the Attorney General the amount of any 
                benefits received by such employee under this section;
                    ``(C) if the borrower is required to repay an 
                amount to the Attorney General under subparagraph (B) 
                and fails to repay such amount, a sum equal to that 
                amount shall be recoverable by the Federal Government 
                from the employee (or such employee's estate, if 
                applicable) by such methods as are provided by law for 
                the recovery of amounts owed to the Federal Government;
                    ``(D) the Attorney General may waive, in whole or 
                in part, a right of recovery under this subsection if 
                it is shown that recovery would be against equity and 
                good conscience or against the public interest; and
                    ``(E) the Attorney General shall make student loan 
                payments under this section for the period of the 
                agreement, subject to the availability of 
                appropriations.
            ``(2) Repayments.--
                    ``(A) In general.--Any amount repaid by, or 
                recovered from, an individual or the estate of an 
                individual under this subsection shall be credited to 
                the appropriation account from which the amount 
                involved was originally paid.
                    ``(B) Merger.--Any amount credited under 
                subparagraph (A) shall be merged with other sums in 
                such account and shall be available for the same 
                purposes and period, and subject to the same 
                limitations, if any, as the sums with which the amount 
                was merged.
            ``(3) Limitations.--
                    ``(A) Student loan payment amount.--Student loan 
                repayments made by the Attorney General under this 
                section shall be made subject to such terms, 
                limitations, or conditions as may be mutually agreed 
                upon by the borrower and the Attorney General in an 
                agreement under paragraph (1), except that the amount 
                paid by the Attorney General under this section shall 
                not exceed--
                            ``(i) $10,000 for any borrower in any 
                        calendar year; or
                            ``(ii) an aggregate total of $60,000 in the 
                        case of any borrower.
                    ``(B) Beginning of payments.--Nothing in this 
                section shall authorize the Attorney General to pay any 
                amount to reimburse a borrower for any repayments made 
                by such borrower prior to the date on which the 
                Attorney General entered into an agreement with the 
                borrower under this subsection.
    ``(e) Additional Agreements.--
            ``(1) In general.--On completion of the required period of 
        service under an agreement under subsection (d), the borrower 
        and the Attorney General may, subject to paragraph (2), enter 
        into an additional agreement in accordance with subsection (d).
            ``(2) Term.--An agreement entered into under paragraph (1) 
        may require the borrower to remain employed as a prosecutor or 
        public defender for less than 3 years.
    ``(f) Award Basis; Priority.--
            ``(1) Award basis.--Subject to paragraph (2), the Attorney 
        General shall provide repayment benefits under this section on 
        a first-come, first-served basis, and subject to the 
        availability of appropriations.
            ``(2) Priority.--The Attorney General shall give priority 
        in providing repayment benefits under this section in any 
        fiscal year to a borrower who--
                    ``(A) received repayment benefits under this 
                section during the preceding fiscal year; and
                    ``(B) has completed less than 3 years of the first 
                required period of service specified for the borrower 
                in an agreement entered into under subsection (d).
    ``(g) Regulations.--The Attorney General is authorized to issue 
such regulations as may be necessary to carry out the provisions of 
this section.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $25,000,000 for fiscal year 2006 
and such sums as may be necessary for each succeeding fiscal year.''.
Output: Prosecutors and Defenders Incentive Act of 2005 - Amends the Omnibus Crime Control and Safe Streets Act of 1968 to direct the Attorney General to establish a loan repayment program for student loan borrowers who agree in writing to remain employed as state or local criminal prosecutors or federal, state, or local public defenders for not less than three years.

 Requires borrowers who are involuntarily separated from employment due to misconduct or who voluntarily leave employment before the required three-year period to repay any benefits received under this Act.

Limits the amount of loans which may be repaid to $10,000 for any borrower in any calendar year, or an aggregate total of $60,000 for any borrower.

Authorizes the Attorney General to enter into an additional loan repayment agreement with a borrower to remain employed as a prosecutor or public defender for a period of less than three years.

Authorizes appropriations.