H.R. 3655: STAR Plus Scholarship Act

This bill, known as the STAR Plus Scholarship Act, aims to establish a new scholarship program to support individuals pursuing careers in substance use disorder treatment and behavioral and mental health. The program is intended to expand the workforce in areas where there is a shortage of mental health professionals.

Key Provisions

• Establishment of the Scholarship Program: The Secretary of Health and Human Services will create the Substance Use Disorder Treatment and Behavioral and Mental Health Workforce Scholarship Program, which will provide scholarships to eligible individuals studying in relevant fields.
• Eligibility Requirements: To qualify for a scholarship, applicants must:
  • Be accepted or enrolled as a full-time student in an accredited educational institution.
  • Be enrolled in a program of study that prepares them for a career in substance use disorder treatment or mental health.
  • Submit an application and sign a contract agreeing to work in shortage areas for a specified period after graduation.
• Application Process: The Secretary will provide clear application forms that outline the rights and responsibilities of participants. The information will be available well in advance to allow potential applicants sufficient time to understand the process.
• Scholarship Funds: Scholarships will cover tuition and other reasonable educational expenses, such as fees and books. The bill allows the Secretary to make payments directly to educational institutions on behalf of the students.
• Contractual Obligations: Recipients of scholarships must agree to work in designated mental health professional shortage areas for an amount of time equivalent to the duration they received financial support. If they fail to fulfill this commitment, they may incur penalties as outlined in their contract.
• Priority Consideration: The Secretary will prioritize applicants who demonstrate a strong interest in providing services in these areas and those from underrepresented groups in the mental health workforce.
• Funding: The Act authorizes $75 million annually from fiscal years 2026 through 2030 to support the scholarship program.
• Tax Implications: The scholarships provided under this program will not be included in the gross income of the recipient for tax purposes.

Employment Obligations

Individuals who receive scholarships must commit to full-time work in a designated shortage area or in settings experiencing significant substance use and mental health treatment needs. This requirement ensures that the benefits of the scholarship program directly address the shortage of qualified professionals in these critical fields.

Liquidated Damages for Breach

The Secretary may establish penalties for individuals who do not meet their service obligations as a result of accepting the scholarships. However, individuals will not be penalized if they have completed their service commitments but are unable to complete the full obligated service time.

Fund Establishment

The bill creates a specific fund to manage the financial aspects of the scholarship program, allowing recovery of costs in cases of contractual breach. This fund will be utilized to ensure that entities in need can replace lost services due to breaches of contract by scholarship recipients.

Relevant Companies

None found