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Rural Veterinary Workforce Act Tackles Veterinarian Deficit in Rural America |
WASHINGTON, D.C. – U.S. Senator Cindy Hyde-Smith (R-Miss.) is part of a bipartisan group of Senators who are reintroducing critical legislation aimed at addressing the increasing shortage of veterinarians in rural communities.
The Rural Veterinary Workforce Act (S.1163) would eliminate the 39 percent federal withholding tax on loan repayment awards given to veterinarians who commit to serving for three years in USDA-designated veterinary shortage areas. The bill falls in line with a years-long and ongoing effort by Hyde-Smith to address rural veterinary workforce issues.
“As the shortage of veterinarians surpasses a crisis point in rural Mississippi and across rural America, the Rural Veterinary Workforce Act has become an urgent necessity. This critical legislation is key to tackling the growing emergency and guaranteeing that taxpayers see far greater returns from the Veterinary Medicine Loan Repayment Program,” Hyde-Smith said. “I will continue to work with my colleagues to get these changes enacted so this program can function the way Congress actually intended.”
Established by Congress in 2003, the Veterinary Medicine Loan Repayment Plan, funded at $10 million in FY2025, helps alleviate the veterinary shortage by offering student loan repayment assistance to qualifying veterinarians who agree to practice in underserved areas. However, the current federal withholding tax on these repayments means nearly 40 percent of the funds appropriated by Congress are returned to the U.S. Treasury, rather than directly supporting veterinarians.
S.1163 would extend identical exemptions that are currently available to medical doctors and other healthcare professionals in analogous loan repayment programs, if enacted.
Senate Finance Committee Chairman Mike Crapo (R-Idaho) and U.S. Senator Tina Smith (D-Minn.) are leading the legislation. The Mississippi State University College of Veterinary Medicine, Mississippi Veterinary Medical Association, and Mississippi Farm Bureau Federation are among the more than 100 national and state organizations supporting Rural Veterinary Workforce Act.
Additional original cosponsors include Agriculture Committee Chairman John Boozman (R-Ark.), Susan Collins (R-Maine), Cynthia Lummis (R-Wyo.), Jerry Moran (R-Kan.), Jim Risch (R-Idaho), Chris Coons (D-Del.), Kirsten Gillibrand (D-N.Y.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), and Jon Ossoff (D-Ga.).
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