STAR Plus Scholarship Act
- Sponsor
- Rep. Salinas, Andrea [D-OR-6]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- May 29, 2025
Bottom line
The bill aims to address critical shortages in the mental health and substance use disorder workforce by offering tax-free scholarships to students who commit to practicing in underserved communities.
What it actually does
This bill establishes the Substance Use Disorder Treatment and Behavioral and Mental Health Workforce Scholarship Program under the Public Health Service Act. It provides scholarships to students pursuing careers in substance use disorder treatment and behavioral/mental health in exchange for an obligated period of service in designated shortage areas. The bill also amends the Internal Revenue Code to make these scholarships tax-exempt.
Proponents argue
Supporters argue that this bill is crucial for addressing the growing mental health and substance use disorder crisis by bolstering the workforce in these critical areas. They contend that financial barriers often deter individuals from entering these professions or practicing in underserved communities, and scholarships coupled with service obligations can effectively bridge this gap, improving access to care.
Opponents contend
Critics might argue that while the intent is good, scholarship programs can be inefficient or fail to address underlying systemic issues contributing to workforce shortages, such as low reimbursement rates or burnout. They might also raise concerns about the administrative burden of managing such a program or the potential for individuals to breach contracts, leading to unfulfilled service obligations.
The bill is relatively short and clearly structured, making it accessible for an informed reader to understand its core provisions within a reasonable timeframe.
Section 2(a), adding new Section 782(a) to the Public Health Service Act.
Establishment of the STAR Plus Scholarship Program
This provision formally creates the Substance Use Disorder Treatment and Behavioral and Mental Health Workforce Scholarship Program. It tasks the Secretary of Health and Human Services, through the Health Resources and Services Administration (HRSA), with awarding scholarships to ensure an adequate supply of professionals in "covered employment" related to substance use disorder treatment and behavioral/mental health.
Supporters argue
Supporters argue this is the foundational element to address critical workforce shortages, directly incentivizing individuals to enter and remain in these vital health fields.
Critics contend
No specific opposition is typically raised against the establishment of a scholarship program in principle, though concerns might arise about its effectiveness or administrative costs.
Tradeoffs
The tradeoff is between direct financial aid and the potential for administrative overhead, balanced against the urgent need for workforce expansion.
Section 2(a), adding new Section 782(b), (f), and (i) to the Public Health Service Act.
Scholarship Eligibility and Service Obligation
To be eligible, students must be enrolled full-time in an accredited program leading to "covered employment" and sign a contract agreeing to serve for one year for each year of scholarship received. This service must be in a mental health professional shortage area, a county with a high drug overdose death rate, or another Secretary-designated shortage facility.
Section 2(a), adding new Section 782(g) and (m) to the Public Health Service Act; Section 2(b) amending Section 117(c)(2) of the Internal Revenue Code.
Scholarship Benefits and Funding Authorization
Scholarships cover tuition and reasonable educational expenses. The bill authorizes $75,000,000 for each of fiscal years 2026 through 2030 to fund the program. Additionally, it amends the Internal Revenue Code to exclude these scholarships from the recipient's gross income, making the financial benefit tax-free.
Defines "covered employment" as full-time employment (including fellowships) primarily focused on direct treatment or recovery support for patients with substance use, behavioral health, or mental health disorders. It also lists specific professions that *may* be included, such as physicians, psychiatric nurses, social workers, therapists, counselors, psychologists, and psychiatrists.
Section 2(a), adding new Section 782(l) to the Public Health Service Act.
Why it matters:Standard legislative practice to place definitions at the end of a section.
Case for: Supporters would argue that a clear definition is essential for program integrity, ensuring that scholarships are awarded to individuals who will genuinely contribute to the target workforce. The flexibility to include various professions allows for a comprehensive approach to addressing shortages.
Case against: Critics might point out that the phrase "may include employment as..." leaves significant discretion to the Secretary, potentially leading to inconsistencies or exclusions of other valuable professionals not explicitly listed, or conversely, including professions that are not the highest priority.
Estimated impact: Determines the exact scope of eligible professions, directly influencing who can receive scholarships and thus the composition of the workforce receiving support.
Establishes a special fund in the Treasury to collect amounts recovered from individuals who breach their scholarship contracts. These funds are then authorized to be appropriated to make payments to entities that need health professionals due to such breaches, allowing them to recruit replacements.
Section 2(a), adding new Section 782(k) to the Public Health Service Act.
Why it matters:Standard legislative practice for handling financial recovery and reinvestment mechanisms.
Case for: Proponents would argue that this fund is a responsible fiscal measure, ensuring that resources are recovered and reinvested to mitigate the impact of contract breaches, thereby maintaining the program's effectiveness and accountability.
Case against: Opponents might suggest that the existence of such a fund highlights the potential for significant contract breaches, indicating a flaw in the program's design or the attractiveness of the obligated service.
Estimated impact: Provides a mechanism to recoup and reallocate funds from defaulted scholarships, ensuring that the program's goals are still met even if some recipients fail to complete their service.