WASHINGTON, DC – U.S. Senators Tina Smith (D-MN) and Mike Crapo (R-ID) introduced a bipartisan bill to combat the scarcity of veterinarians in rural areas. The Rural Veterinary Workforce Act would give veterinarians practicing in underserved communities tax exemptions for student loan payments. This would extend a similar exemption available for physicians to veterinary services, enabling veterinarians to help the Americans who need it the most.
“In nearly every state in the country, there are shortages for veterinarians, especially in rural areas,” said Senator Smith.“This record shortage causes serious harm to the health of animals and the public. Providing additional funding to the Veterinary Medicine Loan Repayment Program and updating the tax code to better serve veterinarians will allow more qualified vets to do vital work with our animals in underserved communities.”
“Access to quality veterinary care is vital for Idaho’s agricultural industry,” said Senator Crapo.“By addressing the burdensome taxes on the Veterinary Medicine Loan Repayment Program, this legislation would allow more veterinarians to serve in the rural and underserved communities most in need and help ensure ranchers and farmers have access to these essential veterinary services.”
In 2003, Congress established the Veterinary Medicine Loan Repayment Program (VMLRP) to address the shortage of veterinarians in rural states. The program allows veterinarians to repay their student loans if they decide to work in underserved communities for at least three years. Veterinarians often face substantial student debt in comparison to their salaries, so along with tackling rural shortages, this program also eases that burden.
However, these payments are subject to a significant federal withholding tax, hindering the support that veterinarians receive. This bill proposes a tax exemption for payments received under the VMLRP and similar state programs. Fixing this gap would allow more veterinarians to practice in areas requiring the most support.
In addition to Crapo and Smith, the bill is co-sponsored by U.S. Senators John Boozman (R-AR), Susan Collins (R-ME), Chris Coons (D-DE), Kirsten Gillibrand (D-NY), Cindy Hyde-Smith (R-MS), Angus King (I-ME), Amy Klobuchar (D-MN), Cynthia Lummis (R-WY), Jerry Moran (R-KS), Jon Ossoff (D-GA), and Jim Risch (R-ID).
You can read the text of the bill here.
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