PolicyBrief
S. 2954
119th CongressSep 30th 2025
Health Care Workforce Expansion Act of 2025
IN COMMITTEE

The Health Care Workforce Expansion Act of 2025 establishes grant programs to fund student tuition and expand enrollment in medical, dental, and nursing schools, increases Medicare funding for graduate medical education, adds over 50,000 new residency slots prioritizing psychiatry and primary care, and creates grants to incentivize practitioners to relocate to rural areas.

Bernard "Bernie" Sanders
I

Bernard "Bernie" Sanders

Senator

VT

LEGISLATION

Tuition-Free Med School for 10 Years of Service: Bill Adds 50K Residency Slots and $20K Rural Relocation Grants

This bill, the Health Care Workforce Expansion Act of 2025, is a massive effort to fix the doctor, nurse, and dentist shortage by throwing serious money at the problem. Starting July 1, 2026, it sets up new grant programs that cover full tuition and fees for medical, dental, and nursing students. It also mandates a huge increase in residency slots—over 50,000 new slots nationwide—while significantly boosting funding for teaching health centers and providing cash incentives for professionals to move to rural areas.

The Full-Ride Deal with a Catch

If you or someone you know is considering a career in medicine or dentistry, this bill is a game-changer—but it comes with a contract. The new MED Grants (for doctors) and DENTAL Grants (for dentists) cover 100% of tuition and fees. The catch? You must commit to practicing primary care (for doctors) or general dental care in a rural area (for dentists) for at least 10 years within 15 years of finishing your training. If you don't complete that service, the grant money converts into a Federal Direct Unsubsidized Stafford Loan, capped at a hefty $50,000 plus interest, depending on how much service you completed. Essentially, the government is offering a full scholarship in exchange for a decade of public service, turning a grant into a debt risk if you don't stick to the plan. Interestingly, the NURSE Grants also cover full tuition but do not include this mandatory service commitment tied to loan repayment, creating a clear difference in obligation across the professions.

Schools Must Bulk Up Fast

To ensure there are actually seats for all these grant recipients, the bill dedicates billions of dollars to help health professional schools expand. These expansion grants are tied to aggressive enrollment goals that must be met within four years: medical schools must increase enrollment by 50 percent by year 2 and another 50 percent by year 4; nursing schools need a 30 percent increase by year 2 and another 30 percent by year 4. While this means more students can get trained, the speed of these increases could strain existing faculty and infrastructure. Schools will need to use these funds wisely—for things like hiring faculty, modernizing facilities, and improving recruitment—to meet these targets without sacrificing the quality of education.

50,220 New Residency Slots Are Coming

The most significant change for the doctor pipeline is the addition of 50,220 new Medicare-funded residency slots, phased in over the next decade starting in fiscal year 2027. This addresses the infamous bottleneck where medical school graduates can’t find a training spot. Critically, these new slots aren't distributed randomly: at least 15 percent must go to psychiatry and at least 30 percent must go to primary care specialties. For hospitals, this means a massive expansion of their teaching programs, backed by increased federal payments for each resident. For patients, particularly those struggling to find a psychiatrist or primary care physician, this is a clear win designed to boost access in the most strained areas of the healthcare system.

$20,000 to Move to the Middle of Nowhere

Finally, the bill tries to solve the rural healthcare desert problem with direct cash. The new Rural Relocation Grant Program offers up to $20,000 to doctors, nurses, and dentists who are currently practicing in a non-rural area and agree to move their practice to a rural state. The requirement is simple: you must commit to practicing there for at least three years. If you take the money and leave early, you have to pay back 50 percent of the grant. This is a targeted incentive designed to quickly inject experienced professionals into underserved communities, offering a tangible benefit to families in rural areas who often face long drives and wait times for basic medical care.