42 USC 254q-1 - Grants to States for loan repayment programs

U.S Code last checked for updates: Apr 28, 2024

§ 254q–1.

Grants to States for loan repayment programs

(a)

In general

(1)

Authority for grants

(2)

Loan repayment programs

(3)

Direct administration by State agency

(b)

Requirement of matching funds

(1)

In general

(2)

Determination of amount of non-Federal contribution

(c)

Coordination with Federal program

(1)

Assignments for health professional shortage areas under Federal program

(2)

Remedies for breach of contracts

(3)

Limitation regarding contract inducements

(A)

Except as provided in subparagraph (B), the Secretary may not make a grant under subsection (a) unless the State involved agrees that the contracts provided by the State pursuant to paragraph (2) of such subsection will not be provided on terms that are more favorable to health professionals than the most favorable terms that the Secretary is authorized to provide for contracts under the Loan Repayment Program under section 254l–1 of this title, including terms regarding—

(i)

the annual amount of payments provided on behalf of the professionals regarding educational loans; and

(ii)

the availability of remedies for any breach of the contracts by the health professionals involved.

(B)

With respect to the limitation established in subparagraph (A) regarding the annual amount of payments that may be provided to a health professional under a contract provided by a State pursuant to subsection (a)(2), such limitation shall not apply with respect to a contract if—

(i)

the excess of such annual payments above the maximum amount authorized in section 254l–1(g)(2)(A) of this title for annual payments regarding contracts is paid solely from non-Federal contributions under subsection (b); and

(ii)

the contract provides that the health professional involved will satisfy the requirement of obligated service under the contract solely through the provision of primary health services in a health professional shortage area that is receiving priority for purposes of section 254f–1(a)(1) of this title and that is authorized to receive assignments under section 254f of this title of individuals who are participating in the Scholarship Program under section 254l of this title.

(d)

Restrictions on use of funds

The Secretary may not make a grant under subsection (a) unless the State involved agrees that the grant will not be expended—

(1)

to conduct activities for which Federal funds are expended—

(A)

within the State to provide technical or other nonfinancial assistance under subsection (f) of section 254c 1

 See References in Text note below.

of this title;

(B)

under a memorandum of agreement entered into with the State under subsection (h) of such section; or

(C)

under a grant under section 254r of this title; or

(2)

for any purpose other than making payments on behalf of health professionals under contracts entered into pursuant to subsection (a)(2).

(e)

Reports

The Secretary may not make a grant under subsection (a) unless the State involved agrees—

(1)

to submit to the Secretary such reports regarding the States loan repayment program, as are determined to be appropriate by the Secretary; and

(2)

to submit such a report not later than January 10 of each fiscal year immediately following any fiscal year for which the State has received such a grant.

(f)

Requirement of application

(g)

Noncompliance

(1)

In general

(2)

Reduction in grant relative to number of breached contracts

(A)

Before making a grant under subsection (a) to a State for a fiscal year, the Secretary shall determine the number of contracts provided by the State under paragraph (2) of such subsection with respect to which there has been an initial breach by the health professionals involved during the fiscal year preceding the fiscal year for which the State is applying to receive the grant.

(B)

Subject to paragraph (3), in the case of a State with 1 or more initial breaches for purposes of subparagraph (A), the Secretary shall reduce the amount of a grant under subsection (a) to the State for the fiscal year involved by an amount equal to the sum of the expenditures of Federal funds made regarding the contracts involved and an amount representing interest on the amount of such expenditures, determined with respect to each contract on the basis of the maximum legal rate prevailing for loans made during the time amounts were paid under the contract, as determined by the Treasurer of the United States.

(3)

Waiver regarding reduction in grant

(h)

“State” defined

(i)

Authorization of appropriations

(1)

In general

(2)

Availability

(j)

Public health loan repayment

(1)

In general

(2)

Loans eligible for repayment

(3)

Applicability of existing requirements

With respect to awards made under paragraph (1)—

(A)

the requirements of subsections (b), (f), and (g) shall apply to such awards; and

(B)

the requirements of subsection (c) shall apply to such awards except that with respect to paragraph (1) of such subsection, the State involved may assign an individual only to public and nonprofit private entities that serve health professional shortage areas or areas at risk of a public health emergency, as determined by the Secretary.

(4)

Authorization of appropriations

(July 1, 1944, ch. 373, title III, § 338I, formerly § 338H, as added Pub. L. 100–177, title II, § 203, Dec. 1, 1987, 101 Stat. 999; renumbered § 338I and amended Pub. L. 101–597, title II, § 204, title III, § 301, title IV, § 401(b)[(a)], Nov. 16, 1990, 104 Stat. 3027, 3029, 3035; Pub. L. 105–392, title IV, § 408, Nov. 13, 1998, 112 Stat. 3589; Pub. L. 107–251, title III, § 315, Oct. 26, 2002, 116 Stat. 1653; Pub. L. 109–417, title II, § 203(b), Dec. 19, 2006, 120 Stat. 2849; Pub. L. 110–355, § 3(e), Oct. 8, 2008, 122 Stat. 3994.)

cite as: 42 USC 254q-1