Establishment of Start and Stay at VA Program

(a) In general Chapter 76 of title 38, United States Code, is amended by adding at the end the following new subchapter: X Start and Stay at VA Program 7699C. Start and Stay at VA Program (a) In general As part of the Educational Assistance Program, the Secretary shall carry out a program under this subchapter to provide— (1) scholarships under section 7699C–1 of this title; and (2) lump sum education debt reduction under section 7699C–2 of this title. (b) Name of program The program under this subchapter shall be known as the Start and Stay at VA Program (in this subchapter referred to as the Program). 7699C–1. Scholarships (a) Covered costs A scholarship provided to an individual under the Program shall consist of payment of reasonable education expenses of the individual for a course of education or training described in subsection (b)(3), including tuition, fees, books, and laboratory expenses. (b) Eligibility An individual is eligible to receive a scholarship under the Program if the individual— (1) is an employee of the Department serving as a medical support assistant, advanced medical support assistant, lead medical support assistant, or supervisory medical support assistant; (2) as of the date on which the individual submits an application for participation in the Program, has been continuously employed by the Department in one or more of the positions specified in paragraph (1) for a period of not less than two years; (3) has been accepted for enrollment or is enrolled as a student in a course of education or training— (A) listed as a requirement for any shortage occupation position, as determined by the Secretary; (B) related to business, health care administration, or human resources; or (C) completion of which results in any other degree or certification that the Secretary considers appropriate for purposes of the Program; and (4) has a record of employment with the Department that, in the judgment of the Secretary, demonstrates a high likelihood that the individual will be successful in completing such course of education or training and in gaining employment in a field related to such course of education or training. (c) Period of obligated service (1) Agreement (A) In general An agreement between the Secretary and a participant under the Program who seeks a scholarship under this section, in addition to the requirements set forth in section 7604 of this title, shall include the following: (i) The agreement of the Secretary to provide the participant with a scholarship under the Program for a specified number of school years, which may not exceed the credit equivalent of four full school years, during which the participant pursues a course of education or training described in subsection (b)(3) that meets the requirements set forth in section 7602(a) of this title. (ii) Subject to subparagraph (B), the agreement of the participant to serve as a full-time employee in the Department in a position described in subsection (b)(3)(A) for a period of time, not less than one year, that is equal to the period of the course of education or training for which a scholarship is provided under this section (in this section referred to as the period of obligated service of the participant). (B) Part-time students In the case of a participant who is a part-time student during a school year with respect to which a scholarship is provided to the participant under this section, the period of obligated service of the participant incurred during that school year shall be reduced in accordance with the proportion that the number of credit hours carried by the participant in that school year bears to the number of credit hours required to be carried by a full-time student in the course of education or training pursued by the participant during that school year, but in no event may the total period of obligated service of the participant be reduced to less than one year. (2) Service commencement date (A) In general Except as provided in subparagraph (F) or (G), not later than 60 days before the service commencement date of a participant under this section, the Secretary shall notify the participant of that service commencement date. That date is the beginning of the period of obligated service of the participant. (B) Doctors and similar health care professionals In the case of a participant receiving a degree from a school of medicine, osteopathy, dentistry, optometry, or podiatry, the service commencement date of the participant is the date the participant becomes licensed to practice medicine, osteopathy, dentistry, optometry, or podiatry, as the case may be, in a State. (C) Nurses In the case of a participant receiving a degree from a school of nursing, the service commencement date of the participant is the later of— (i) the course completion date of the participant; or (ii) the date the participant becomes licensed as a registered nurse in a State. (D) Other health care professionals In the case of a participant not covered by subparagraph (B) or (C), the service commencement date of the participant is the later of— (i) the course completion date of the participant; or (ii) the date the participant meets any applicable licensure or certification requirements. (E) Treatment of part-time students The Secretary shall specify the service commencement date for participants who were part-time students, which shall include terms as similar as practicable to the terms set forth in subparagraphs (B) through (D). (F) Service during course of education or training A participant may serve the period of obligated service of the participant, or any portion of such period of obligated service, during the period in which the participant is enrolled as a student in a course of education or training under subsection (b)(3) if the participant is employed in a position described in subparagraph (A) of such subsection. (G) Service following licensure or ongoing training With respect to a participant who is licensed but may enter a residency or similar training program, the Secretary may adjust the beginning of the period of obligated service of the participant to begin following completion of the residency or similar training program. (H) Course completion date defined In this section, the term course completion date means the date on which a participant under this section completes the course of education or training of the participant under this section. (d) Liability for breach of agreement (1) Liability during course of education or training (A) In general Except as provided in paragraph (3), a participant under this section shall be liable to the United States for the amount that has been paid to or on behalf of the participant under the agreement under subsection (c)(1) if any of the following occurs: (i) The participant fails to maintain an acceptable level of academic standing in the educational institution in which the participant is enrolled (as determined by the educational institution pursuant to direction by the Secretary). (ii) The participant is dismissed from such educational institution for disciplinary reasons. (iii) The participant voluntarily terminates the course of education or training in such educational institution before the completion of such course of education or training. (iv) The participant, as applicable, during a period of time determined by the Secretary— (I) fails to become licensed to practice medicine, osteopathy, dentistry, podiatry, or optometry in a State; (II) fails to become licensed as a registered nurse in a State; or (III) in the case of any other health-care personnel who is not covered under subclause (I) or (II), fails to meet any applicable licensure or certification requirement. (B) In lieu of service obligation Liability under this paragraph is in lieu of any period of obligated service arising under the agreement of the participant under subsection (c)(1). (2) Liability during period of obligated service Except as provided in paragraph (3), if a participant under this section breaches the agreement under subsection (c)(1) by failing for any reason to complete the period of obligated service of the participant, the United States shall be entitled to recover from the participant an amount equal to— (A) the total amount paid under this section to the participant; multiplied by (B) a fraction— (i) the numerator of which is— (I) the total number of months in the period of obligated service of the participant; minus (II) the number of months served by the participant; and (ii) the denominator of which is the total number of months in the period of obligated service of the participant. (3) Limitation on liability for reduction in force Liability shall not arise under paragraph (1) or (2) in the case of a individual covered by either such paragraph if the individual does not obtain, or fails to maintain, employment as an employee of the Department due to staffing changes approved by the Secretary. (e) Payment of amounts and limitations (1) Total amount for a school year The total amount of a scholarship payable to a participant under this section— (A) may not exceed $20,000 for the equivalent of one year of full-time coursework in a course of education or training; or (B) in the case of a participant who is a part-time student, may not exceed an amount that bears the same ratio to the amount that would be paid under subparagraph (A) if the student were a full-time student in the course of education or training being pursued by the participant as the coursework carried by the participant compares to full-time coursework in that course of education or training. (2) Maximum number of school years (A) Total years The number of school years for which a scholarship may be paid to a participant under this section may not exceed eight school years. (B) Full-time equivalent A participant may not receive a scholarship under this section for more than the equivalent of four years of full-time coursework. (3) Maximum total amount The total amount paid to or on behalf of a participant through a scholarship under this section may not exceed $80,000. (4) Payment of educational expenses by educational institutions The Secretary may arrange with an educational institution in which a participant under this section is enrolled for the payment of education expenses under subsection (a). Such payments may be made without regard to subsections (a) and (b) of section 3324 of title 31. 7699C–2. Lump sum education debt reduction (a) Covered costs Lump sum education debt reduction provided by the Secretary under this section to an individual shall consist of payment of principal and interest under a loan, the proceeds of which were used by or on behalf of that individual to pay costs relating to a course of education or training, including tuition expenses and other reasonable educational expenses, including fees, books, laboratory expenses, and reasonable living expenses. (b) Eligibility An individual is eligible to receive lump sum education debt repayment under this section if the individual— (1) owes any amount of principal and interest under a loan, the proceeds of which were used by or on behalf of that individual to pay costs relating to a course of education or training; (2) commits to a period of obligated service under subsection (d); and (3) has been offered employment in the Department in the position of a medical support assistant, advanced medical support assistant, lead medical support assistant, or supervisory medical support assistant. (c) Payments (1) In general A lump sum education debt reduction payment under this section shall consist of a payment to a participant under this section of an amount not to exceed the lesser of— (A) the principal and interest on loans described in subsection (a) that is outstanding for such participant at the time of the payment; or (B) $40,000. (2) Proof of use of amounts Participants under this section in receipt of a lump sum education debt reduction payment under this section must provide proof of payment verifying the full lump sum payment received was paid to the lender for the loan held by such participant not later than 45 days after receiving the lump sum payment. (d) Period of obligated service (1) In general In exchange for a one-time lump sum education debt payment under this section, a participant under this section shall agree to be employed for not less than three years at the Department (in this section referred to as the period of obligated service). (2) Positions of employment (A) Medical support Not fewer than two of the years of the period of obligated service of a participant under this section shall be served in the position of medical support assistant, advanced medical support assistant, lead medical support assistant, or supervisory medical support assistant of the Department. (B) Hard-to-hire or hard-to-recruit The remainder of any period of obligated service not covered under subparagraph (A) shall be served in a hard-to-hire or hard-to-recruit position as determined by the Secretary. (e) Liability during period of obligated service (1) In general Except as provided in paragraph (2), if a participant under this section fails to complete the period of obligated service of the participant for any reason, the United States shall be entitled to recover from the participant an amount equal to— (A) the total amount paid under this section to the participant; multiplied by (B) a fraction— (i) the numerator of which is— (I) the total number of months in the period of obligated service of the participant; minus (II) the number of months served by the participant; and (ii) the denominator of which is the total number of months in the period of obligated service of the participant. (2) Exception Liability shall not arise under paragraph (1) in the case of an individual covered by that paragraph if the individual does not obtain, or fails to maintain, employment as an employee of the Department due to staffing changes approved by the Secretary. 7699C–3. Administration (a) Outreach (1) In general The Secretary shall develop an outreach program to Tribal Colleges and Universities, historically Black colleges and universities, high schools in rural areas, community colleges, transition assistance programs for members of the Armed Forces transitioning to civilian life, and spouses of such members to provide information about the Program. (2) Tribal College or University defined In this subsection, the term Tribal College or University has the meaning given that term under section 316 of the Higher Education Act of 1965 (20 U.S.C. 1059c). (b) Mentors The Secretary shall ensure that a mentor or mentors are available for each individual participating in the Program at the facility at which the individual is employed. 7699C–4. Limitation No individual may receive both a scholarship under section 7699C–1 of this title and a lump sum education debt reduction under section 7699C–2 of this title. 7699C–5. Termination The authority to carry out the Program shall terminate on the date that is 10 years after the date of the enactment of the Honor Act of 2025.. (b) Clerical amendment The table of sections at the beginning of such chapter is amended by adding at the end the following: SUBCHAPTER X—Start and Stay at VA Program Sec. 7699C. Start and Stay at VA Program. 7699C–1. Scholarships. 7699C–2. Lump sum education debt reduction. 7699C–3. Administration. 7699C–4. Limitation. 7699C–5. Termination.. (c) Conforming amendments (1) Establishment of program Section 7601(a) of such title is amended— (A) in paragraph (6), by striking and; (B) in paragraph (7), by striking the period and inserting; and; and (C) by adding at the end the following new paragraph: (8) the program to provide scholarships and lump sum education debt reduction provided for in subchapter X of this chapter.. (2) Eligibility Section 7602 of such title is amended— (A) in subsection (a)(1)— (i) by striking or IX and inserting IX, or X; (ii) by striking or for which a scholarship and inserting for which a scholarship; and (iii) by inserting or for which a scholarship or lump sum education debt reduction may be provided under subchapter X of this chapter, before as the case may be; and (B) in subsection (b), by striking or IX and inserting IX, or X. (3) Application Section 7603(a)(1) of such title is amended by striking or IX and inserting IX, or X. (4) Terms of agreement Section 7604 of such title is amended by striking or IX each place it appears and inserting IX, or X. (5) Annual report Section 7632 of such title is amended— (A) in paragraph (1), by striking and the Readjustment Counseling Service Scholarship Program and inserting the Readjustment Counseling Service Scholarship Program, and the Start and Stay at VA Program; and (B) in paragraph (4), by striking and per participant in the Readjustment Counseling Service Scholarship Program and inserting per participant in the Readjustment Counseling Service Scholarship Program, and per participant in the Start and Stay at VA Program.