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SENATE BILL NO. 625
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the Senate Committee on Finance and Appropriations
on February 11, 2026)
(Patron Prior to Substitute--Senator Deeds)
A BILL to amend the Code of Virginia by adding in Chapter 6 of Title 23.1 an article numbered 8, consisting of sections numbered
23.1-643
through
23.1-648
, relating to public institutions of higher education; financial assistance; Medical Education Service Grant Program established; report.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Chapter 6 of Title 23.1 an article numbered 8, consisting of sections numbered
23.1-643
through
23.1-648
, as follows:
Article
8
.
Medical Education S
ervice
Grant
Program
.
§
23.1-643
. Definitions.
As used in this article, unless the context requires a different meaning:
"Approved medical specialty" means general pediatrics, family medicine, emergency medicine
, obstetrics and gynecology, general psychiatry
,
child psychiatry, geriatric medicine, or a high-needs specialty as determined by the Authority.
"Approved postgraduate residency training program" means a residency training program in an approved medical specialty.
"Authority" means the Virginia Health Workforce Development Authority
established pursuant to §
32.1-122.7
.
"Designated service area" means
any of the following
located in the Commonwealth:
(i) a
geographic
health professional shortage area designated in accordance with the criteria
set forth in 42 C.F.R.
Part 5
;
(ii) a
locality designated by the U
.
S
.
Office of Management and Budget as micropolitan or non-metropolitan; (iii) a
Federally Qualified Health Center or
Rural Health Clinic, as defined in 42 C.F.R. § 405.2401(b)
;
(iv) a
critical access hospital
as
designated pursuant to 42 C.F.R. Part 485, Subpart F; (v)
a clinic organized in whole or in part for the delivery of health care services without charge; or (vi) a rural emergency hospital as
designated pursuant to
42 C.F.R. Part 485, Subpart E.
"Eligible institution" means any accredited medical or osteopathic school in the Commonwealth that awards the degree of doctor of medicine or doctor of osteopathic medicine and is approved by the
p
rogram
a
dministrator.
"Full-time clinical practice" means the practice of medicine for an average of 40 hours per week for at least 45 weeks per year, of which not less than 32 hours per week
i
s devoted to direct patient care.
"Half-time clinical practice" means the practice of medicine for 20
to
39 hours per week for at least 45 weeks per year, of which
not less than 18 hours is devoted to direct patient care and which meets such other requirements as are established by the program administrator.
"Program" means the Medical Education Service
Grant
Program established pursuant to §
23.1-644
.
"
P
rogram
a
dministrator" means the Council, in partnership with the Authority.
"Service agreement" means a written agreement entered into by a
grant
recipient under the
Program to engage in
clinical practice
in a designated service area for the requisite period as a condition of
the grant award
.
§
23.1-644
. Medical Education Service
Grant
Program established; purpose; administration.
The Authority shall establish
the Medical
Education Service
Grant
Program for the purpose of
providing
grants
to any person enrolled in or admitted to
an eligible institution
that shall be
awarded
, in whol
e or in part, upon satisfactory completion of a service agreement in accordance with the provisions of this article.
The Council, in partnership with the Authority, shall administer the Program
as the
p
rogram
a
dministrator
.
§
23.1-64
5
. Program eligibility
; prioritization of applications.
A. Eligibility to apply for a
grant
pursuant to the Program shall be limited to any person who
has
(i) enrolled in or been accepted at an eligible institution; (ii)
demonstrated financial need, as determined by the Council;
(iii) agreed to enter into a
written agreement to pursue clinical practice in an approved medical
specialty
;
and (iv)
agreed to enter into a
service agreement
in accordance with
the provisions of §
23.1-646
.
B. The Council, in coordination with the Authority, shall establish policies for the prioritization of the selection of applicants, including prioritizing applications from (i) prior-year recip
ients under the Program who are in good standing at the time of reapplication
and
(ii) applicants
who are domiciled in the Commonwealth,
as established
in accordance with §
23.1-502
.
C. The Council, in coordination with the Authority, shall develop a process for eligible institutions to nominate students for receipt of support from the Program and, to the e
xtent practicable, ensure representation from each eligible institution among applicants selected under this section.
§
23.1-64
6
.
Receipt of
grants
;
service agreements;
terms and conditions.
A.
Subject to appropriation
by the General Assembly,
the Council shall award a grant in an amount of up to $50,
000 to a recipient
who
has completed a
service
agreement pursuant to the Program
for each academic year of participation. Recipients under the Program may renew
grants
received pursuant to the Program on an annual basis for up to four years
,
provided that the total award over such four
-
year period shall not exceed a total award amount of $200,000 for the duration of enrollment at an eligible institution
.
B. For each academic year a recipient receives a
grant
pursuant to the Program, the recipient shall be required to complete a service agreement to engage in clinical practice in a designated service
area
.
The service agreement shall require the recipient to complete
(i)
two years of full-time clinical practice for the first academic year for which the recipient receives a
grant
pursuant to the Program
and (ii) one additional year of full-time clinical practice for e
ach additional academic year for which the recipient receives a
grant
pursuant to the Program.
However, the service agreement may be satisfied through half-time clinical practice at a rate equivalent to two years of half-time practice for each year of full-time
practice
required.
§
23.1-64
7
.
Authority of Council for
administration
.
The Council, in coordination with the Authorit
y, shall establish policies and procedures for the administration of the Program
.
Such
policies and procedures
shall address, at a minimum:
1. Requirements for recipients to maintain communication with the
p
rogram
a
dministrator throughout the duration of the
recipient's participation in the Program
, including requirements for recipients to regularly verify the status of their education
al
training, practice,
and
setting
;
2. Procedures by which recipients may request deferment of their service agreement, not to extend beyond five years from the date on which the service was originally required to commence, except in the case of
temporary disability, for any of the following reasons: (i) completion of a medical fellowship following residency; (ii) required active military service of the recipient or the recipient's spouse; (iii) temporary medical disability that renders
the recipient unable to engage in the practice of medicine; (
i
v) family medical leave, including parental leave or leave to care for a mem
ber of the recipient's immediate family
; or (v) other eligible reasons, as determined by the program administrator
;
and
3. Procedures for the verification by the
p
rogram
a
dministrator of the eligibility of
the
recipient's practice setting and geographic location, including the procedures governing transition
s
between approved or otherwise eligible practice sites
.
§
23.1-64
8
. Program administrator; report.
A. The
p
rogram
a
dministrator shall
annually
collect and maintain data as necessary to evaluate the effectiveness and outcomes of the
P
r
ogram, including (i) the number and total amount of
grants
awarded; (ii) the number of recipients disaggregated by eligible institution, specialty, and year of participation; (iii) the number and geographic distribution of recipients
who fulfill their service agreement; and (
i
v) to the extent practicable, the number of former recipients who remain in practice with
in
a designated service area following completion of their service agreement.
B.
No later than January 1 of any year in which funds are made available for the Program, t
he
p
rogram
a
dministrator shall submit
to the Governor and the
Chairs
of the
Senate Committees on Education and Health and Finance and Appropriations and the
House Committees on Education, Health and Human Services, and Appropriations a report on the activities of the P
rogram during the preceding fiscal year, including (i) the data collected pursuant to subsection A; (ii) any additional data on
grant
awards
and service locations
;
and (iii)
any recommendations for legislative or administrative action as may be necessary to improve the Program's effectiveness and sustainability.
2. That the first summarized report required pursuant to subsection B of §
23.1-648
of the Code of Virginia, as created by this act, shall be due no later than January 1, 2027.