Virginia HB 663: Medical Education Loan-for-Service Fund and Program; established, report.

Bill Text

2026 SESSION

INTRODUCED

26104717D

HOUSE BILL NO. 663

Offered January 14, 2026

Prefiled January 13, 2026

A BILL to amend the Code of Virginia by adding in Chapter 6 of Title 23.1 an article numbered 8, consisting of sections numbered 23.1-643 through 23.1-648, relating to public institutions of higher education; financial assistance; Medical Education Loan-for-Service Fund and Program established; report.

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Patrons—Willett, Carr and Morefield

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Referred to Committee on Appropriations

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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 6 of Title 23.1 an article numbered 8, consisting of sections numbered 23.1-643 through 23.1-648, as follows:

Article 8.

Medical Education Loan-for-Service Fund and Program.

§ 23.1-643. Definitions.

As used in this article, unless the context requires a different meaning:

"Approved medical specialty" means general pediatrics, family medicine, emergency medicine, obstetrics and gynecology, general psychiatry, child psychiatry, geriatric medicine, or a high-needs specialty as determined by the Authority.

"Approved postgraduate residency training program" means a residency training program in an approved medical specialty.

"Authority" means the Virginia Health Workforce Development Authority established pursuant to § 32.1-122.7.

"Designated service area" means any of the following located in the Commonwealth: (i) a geographic health professional shortage area designated in accordance with the criteria set forth in 42 C.F.R. Part 5; (ii) a locality designated by the United States Office of Management and Budget as micropolitan or non-metropolitan; (iii) a Federally Qualified Health Center or Rural Health Clinic, as defined in 42 C.F.R. § 405.2401(b); (iv) a critical access hospital as designated pursuant to 42 C.F.R. Part 485, Subpart F; (v) a clinic organized in whole or in part for the delivery of health care services without charge; or (vi) a rural emergency hospital as designated pursuant to 42 C.F.R. Part 485, Subpart E.

"Eligible institution" means any accredited medical or osteopathic school in the Commonwealth that awards the degree of doctor of medicine or doctor of osteopathic medicine and is approved by the program administrator.

"Full-time clinical practice" means the practice of medicine for an average of 40 hours per week for at least 45 weeks per year, of which not less than 32 hours per week is devoted to direct patient care.

"Fund" means the Medical Education Loan-for-Service Fund established pursuant to § 23.1-644.

"Half-time clinical practice" means the practice of medicine for 20 to 39 hours per week for at least 45 weeks per year, of which not less than 18 hours is devoted to direct patient care and which meets such other requirements as are established by the Program Administrator.

"Loan" means a conditionally forgivable loan made under the Program pursuant to this article.

"Program" means the Medical Education Loan-for-Service Program established pursuant to § 23.1-644.

"Program administrator" means the Council, in partnership with the Authority.

"Service agreement" means a written agreement entered into by a loan recipient under the Program to engage in clinical practice in a designated service area for the requisite period as a condition of loan forgiveness.

§ 23.1-644. Medical Education Loan-for-Service Fund and Program established; purpose; administration.

A. There is hereby created in the state treasury a special nonreverting fund to be known as the Medical Education Loan-for-Service Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All funds appropriated for such purpose and any gifts, donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purpose of administering the Program in accordance with the provisions of this article. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Executive Director of the Council.

B. There is hereby established the Medical Education Loan-for-Service Program for the purpose of providing loans to any person enrolled in or admitted to an eligible institution that shall be forgiven, in whole or in part, upon satisfactory completion of a service agreement in accordance with the provisions of this article.

C. The Council, in partnership with the Authority, shall administer the Program as the program administrator, pursuant to a memorandum of understanding establishing policies and procedures for th