H.R. 5382: Health Career Advancement and Remuneration Exclusion for Training Act

This bill, known as the Health Career Advancement and Remuneration Exclusion for Training Act, aims to improve training requirements for health profession opportunity grant programs and to change how assistance from these programs is treated for federal income tax purposes.

Training Requirements for Health Profession Opportunity Grant Participants

The bill proposes an amendment to the Social Security Act, specifically targeting the training requirements for individuals participating in certain health career training projects. Key points include:

• The bill mandates that participants in these training projects must receive a minimum number of training hours. This number will either be based on the requirements set by the state for certification at that skill level or, if no such state requirement exists, the amount deemed necessary by the Secretary of Health and Human Services to achieve that level of skill.
• This provision is aimed at ensuring that training programs meet established standards for preparation in the health workforce.

The effective date for these updated training requirements will be October 1, 2025.

Exclusion of Assistance from Federal Income Tax

The bill also proposes a change in how monetary assistance provided under health professions workforce demonstration projects is treated in terms of federal income tax. The main features of this section include:

• Amounts paid to eligible individuals as cash stipends or emergency assistance from these projects will not be considered income for federal tax purposes. This essentially means that recipients of such funds will not have to report this income when filing their taxes.
• Entities providing these payments will not be required to issue a tax information return for these amounts, simplifying the reporting process for them as well.

This exclusion from income tax will also be effective starting October 1, 2025.

Overall Purpose

The overall aim of the bill is to enhance the training of individuals in health professions while also alleviating the tax burden associated with financial assistance received through these programs. By improving training standards and providing tax relief, the bill seeks to support the development of a skilled health workforce.

Relevant Companies

None found.