§254o–1 Fund Regarding Use of Amounts Recovered for Contract Breach to Replace Services Lost as Result of Breach

Summary

Creates the National Health Service Corps Member Replacement Fund in the U.S. Treasury. The Fund gets money that Congress appropriates each year equal to three things from the prior fiscal year: money the federal government collected under section 254o for breached service contracts under sections 254l or 254l–1, the amount by which grants under section 254q–1 were reduced under subsection (g)(2)(B) of that section, and the interest earned plus proceeds from selling or redeeming Fund investments. Money put into the Fund stays available until it is spent. The Secretary may pay health sites that lost a Corps member because the member broke a service contract and that need a primary care provider. Those sites can use the payments to hire or contract with a health professional to serve their patients. The Treasury Secretary must invest Fund amounts not needed for current withdrawals in U.S. interest‑bearing obligations, which can be bought at issue or market price and sold at market price.