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Legislative Update

(08/10/2005) National Health Service Corps (NHSC) Opportunities List NOW AVAILABLE for Scholars in the 2006 Placement Cycle and individuals interested in applying for Fiscal Year (FY) 2006 NHSC Loan Repayment Program (LRP)

(10/22/2004) Loan Repayment Funds exempt from gross income and employment taxes!
Public Law 108-357, enacted October 22, 2004, makes all funds disbursed on or after January 1, 2004 for the National Health Service Corps (NHSC) Loan Repayment Program (LRP) and State Loan Repayment Program (SLRP) exempt from gross income and employment taxes. This law also excludes these funds from being taken into account as wages in determining benefits under the Social Security Act.

As a result of this new law, the NHSC/LRP will no longer withhold Federal income tax and FICA from all NHSC/LRP award payments disbursed on or after January 1, 2004. Subsequently, the NHSC/LRP will not be issuing W-2s or any tax reporting documents to participants or the Internal Revenue Service for payments disbursed on or after January 1, 2004.

Please note that only funds disbursed on or after January 1, 2004, are exempt from gross income and employment taxes. For more information please see Frequently Asked Tax Questions About the NHSC Loan Repayment Program(LRP).

(10/2002)
In October 2002, President Bush signed the "Health Care Safety Net Amendments" legislation (S.1533), which reauthorizes and strengthens the National Health Service Corps. Beyond authorizing additional money for NHSC Scholarship and Loan Repayment Programs, the legislation authorizes a demonstration project to allow for participation of pharmacists and chiropractors in the NHSC Loan Repayment Program. The Health Resources and Services Administration's Office of Legislation http://www.hrsa.gov/legislation/ serves as the Administrator's primary staff unit and principal source of advice on legislative affairs.

We are reviewing these and all other applicable provisions of the new legislation and are developing policies, procedures, and application materials to allow for their timely implementation.

Please visit this page for updated information as it becomes available.

The following information is what we currently have available, and is not inclusive of all areas of the Scholarship and Loan Repayment Programs affected by the reauthorization legislation. As information becomes available we will post it here.

Success Stories

Iowa and Illinois

Certified Nurse-Midwives Attentive to Mothers in Iowa and Illinois

The Maternal Health Center (MHC) of Bettendorf, Iowa, cares for women and infants, regardless of their ability to pay. It serves the Quad City area of Bettendorf and Davenport on the Iowa side and Moline and Rock Island on the Illinois side. The center relies heavily on the skills of its certified nurse-midwives (C.N.M.s) to provide personalized attention and care.

Read more

Health Resources and Services Administration U.S. Department of Health and Human Services