Physical Therapists Get $15 Million for Loan Repayment, Medicare Expands Coverage in 2027

The new Physical Therapist Workforce and Patient Access Act of 2025 is essentially a strategic move to get more physical therapists (PTs) into communities that desperately need them. The bill does this by offering a major incentive—student loan forgiveness—and expanding where PTs can bill Medicare.

The Loan Forgiveness Game Changer

If you’re a physical therapist with a mountain of student debt, this bill is huge. It formally adds PTs to the National Health Service Corps (NHSC) loan repayment program, putting them right alongside doctors and dentists (SEC. 2). For years, the NHSC has traded service in underserved areas for debt relief, and now PTs are eligible. To make sure this actually happens, the bill increases the total NHSC funding pool and carves out a minimum of $15 million specifically for PT loan repayment (SEC. 3). This is dedicated money, locked in just for PTs who agree to work in newly defined "physical therapy health professional target areas."

Think about what this means for a recent PT graduate. Instead of spending the first decade of their career paying off six figures of debt, they can serve in a rural clinic or an urban neighborhood with few specialists, get substantial debt relief, and provide vital care. The government views PTs as crucial, especially for pain management—a key strategy against the opioid crisis—and for recovery from long-term conditions like those related to COVID-19 (SEC. 1).

Expanding the Rehab Map

Beyond debt relief, the bill tackles the issue of access by changing how Medicare pays for services in certain high-need clinics. Starting January 1, 2027, Medicare will be required to cover physical therapy services provided at Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs) (SEC. 4). Currently, these crucial community and rural clinics often struggle to offer a full range of services because of restrictive Medicare billing rules.

This change means that if you live in a rural area and rely on your local RHC, you won't have to drive an hour to the nearest hospital for physical therapy after, say, knee surgery or a bad back flare-up. The care can now be provided right there in your community clinic. It integrates PT into the primary care setting, which is a big win for patient convenience and continuity of care. The catch? You’ll have to wait a couple of years, as this provision doesn't kick in until early 2027.

The Fine Print: Who Pays and Who Benefits

This is a clear win for PTs and patients in underserved areas. However, this expansion comes with an increased cost to taxpayers, as the bill mandates a specific rise in federal spending to cover the loan repayment funds (SEC. 3). While the $15 million dedicated to PTs is great news for that specific profession, it slightly increases the competition for the remaining funds in the overall NHSC pool among other healthcare professionals like nurses and dentists. The government is essentially prioritizing PTs in this round of funding.

Ultimately, this legislation is a direct investment in the PT workforce, using student debt as leverage to improve healthcare access. By making it financially viable for PTs to work where they are needed most and ensuring Medicare pays for their services in community clinics, the bill aims to close gaps in rehabilitation and pain management services across the country.