H.R.593 - Strengthening Pathways to Health Professions Act (119th Congress)
Summary
H.R.593, the "Strengthening Pathways to Health Professions Act," aims to amend the Internal Revenue Code of 1986 to exclude certain health professions education scholarship and loan payments from gross income. This exclusion applies to payments received under specific Public Health Service Act loan repayment programs, state programs, and other state loan repayment or forgiveness programs intended to increase healthcare access in underserved areas. The bill also modifies the treatment of qualified scholarships under Section 117(c)(2) of the Internal Revenue Code.
The bill seeks to incentivize individuals to pursue careers in healthcare, particularly in underserved or health professional shortage areas, by reducing their tax burden related to educational loans and scholarships. The amendments would apply to amounts received in taxable years beginning after the enactment of the Act.
Introduced in the House of Representatives, the bill was referred to the Committee on Ways and Means.
Expected Effects
The primary effect of this bill would be to reduce the tax burden on healthcare professionals who receive loan repayment assistance or scholarships for their education, especially those serving in underserved areas. This could lead to an increase in the number of healthcare professionals willing to work in these areas, improving access to healthcare for underserved populations.
Additionally, the changes to qualified scholarships could make health professions education more accessible by reducing the overall cost to students. This could broaden the pool of potential healthcare providers.
However, the bill could also result in a decrease in federal tax revenue, requiring adjustments in other areas of the budget or potentially increasing the national debt.
Potential Benefits
- Increased Healthcare Access: By incentivizing healthcare professionals to work in underserved areas, the bill could improve access to medical care for populations that currently face shortages.
- Reduced Financial Burden: Excluding loan repayment and scholarship amounts from gross income would ease the financial strain on healthcare professionals, making it more attractive to pursue careers in these fields.
- Attracting Talent: The bill could attract more individuals to pursue careers in healthcare, addressing the growing demand for healthcare services.
- Support for State Programs: The bill recognizes and supports state-level efforts to address healthcare shortages, allowing for tailored solutions to local needs.
- Improved Public Health: By increasing access to healthcare, the bill could contribute to improved public health outcomes, particularly in underserved communities.
Potential Disadvantages
- Reduced Tax Revenue: Excluding loan repayment and scholarship amounts from gross income would reduce federal tax revenue, potentially impacting other government programs or increasing the national debt.
- Potential for Abuse: There is a potential for abuse or misuse of the tax exclusion, requiring careful oversight and enforcement.
- Limited Scope: The bill primarily focuses on financial incentives and may not address other barriers to healthcare access, such as transportation, cultural factors, or language barriers.
- Administrative Complexity: Implementing the changes to the tax code and scholarship programs could create administrative challenges for both the government and individuals.
- Uncertainty of Impact: The actual impact of the bill on healthcare access and workforce shortages may be difficult to predict and measure.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to promote the health and well-being of the population by increasing access to healthcare. The Constitution grants Congress the power to lay and collect taxes to provide for the general welfare of the United States.
Specifically, Article I, Section 8, Clause 1 states that "The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States." This clause provides the constitutional basis for Congress to enact legislation that promotes the general welfare, including measures to improve healthcare access.
However, the bill's impact on fiscal responsibility should be considered in light of the overall constitutional framework.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).