Legislation seeks tax relief for nurses serving underserved areas

Legislation seeks tax relief for nurses serving underserved areas
Rep. Brian K. Fitzpatrick, U.S. Representative for Pennsylvania's 1st District — Official U.S. House headshot
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May 6, 2025

In observance of National Nurses Week, Congressman Brian Fitzpatrick from Pennsylvania’s 1st District has introduced the Nurse Corps Tax Parity Act. The legislation aims to remove a federal tax penalty on nurses serving in high-need areas through the Health Resources and Services Administration’s (HRSA) Nurse Corps program. Congresswoman Jen Kiggans of Virginia and Congressman Mike Thompson of California have joined Fitzpatrick in this bipartisan effort. Senators Jeff Merkley from Oregon and Roger Wicker from Mississippi have introduced a similar bill in the Senate.

Currently, participants in the National Health Service Corps (NHSC) receive tax-free scholarships and loan repayment benefits for working in underserved communities. However, those participating in the Nurse Corps face taxation on these benefits. The proposed legislation seeks to align tax treatment with federal health workforce policy to ensure that nurses are not financially penalized for their service.

“Nurses who commit to serving in our most underserved communities shouldn’t face a financial penalty for answering that call,” stated Fitzpatrick. He emphasized that the bill corrects an inconsistency in federal policy that undermines workforce goals and disrespects the essential role nurses play.

Congresswoman Kiggans added her support: “The Nurse Corps Tax Parity Act is a commonsense bill that recognizes the vital contributions of our Nurse Corps members by removing the unnecessary tax burden on their scholarships and student loan repayments.”

Dr. Deborah Trautman, President and CEO of the American Association of Colleges of Nursing, praised the legislation as “a strong step forward” in supporting the nursing workforce, particularly in critical shortage facilities and medically underserved regions.

Jennifer Mensik Kennedy, President of the American Nurses Association, remarked on the importance of removing this tax burden: “The reintroduction of the Nurse Corps Tax Parity Act is a meaningful step toward recognizing that commitment.”

The demand for qualified nurses is increasing, especially in rural and high-need areas where access to care is limited. The current tax treatment undermines efforts to address workforce shortages by placing financial burdens on those who choose to serve where they are most needed.

By ensuring consistent treatment across federal workforce incentive programs, the Nurse Corps Tax Parity Act aims to reinforce Congress’s commitment to strengthening America’s health infrastructure.

This initiative reflects Congressman Fitzpatrick’s ongoing commitment to supporting nurses both locally and nationwide through increased funding for workforce development and community health centers.



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