A bipartisan bill, cosponsored by U.S. Sen. Jerry Moran, was reintroduced in the Senate this week to address the chronic shortage of veterinary services in rural communities. Representatives introduced a companion bill in the House. The Rural Veterinary Workforce Act would allow veterinarians practicing in underserved areas to exempt student loan repayments from their taxable income. A similar provision already exists for physicians.
Almost every state faces a shortage of veterinarians in rural areas. In fact, according to the American Veterinary Medical Association, which strongly supports the legislation, USDA declared 243 rural veterinary shortage areas in 46 states this year, the highest number ever. Congress tried to address this crisis in 2003 with the establishment of the Veterinary Medicine Loan Repayment Program, which provides student loan reimbursements to qualified veterinarians who choose to practice for three years in underserved communities. However, the program is subject to a significant federal withholding tax, which limits its benefits.
The Rural Veterinary Workforce Act would lift the burden by allowing recipients to exempt payments received under this and similar state programs, enabling veterinarians to practice in underserved areas that may otherwise be unaffordable. It also would align the tax code with human and other healthcare professions’ award funds.