Title 42, The Public Health and WelfareRelease 119-73not60

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

Title 42 › Chapter 6A— PUBLIC HEALTH SERVICE › Subchapter II— GENERAL POWERS AND DUTIES › Part D— Primary Health Care › Subpart iii— scholarship program and loan repayment program › § 254o–1

Last updated Apr 5, 2026|Official source

Summary

Creates a National Health Service Corps Member Replacement Fund in the U.S. Treasury. Each fiscal year, Congress may add to the Fund an amount equal to three things added together: money collected from people who broke Corps contracts, the amount by which certain grants were cut that year, and interest or sale proceeds from Fund investments. Money in the Fund stays available until spent. When Congress approves spending, the Secretary can pay any site where a Corps member was placed that now needs a primary health worker because the member broke their contract. Those sites can use the payments to hire or contract a health professional. The Treasury may invest unused Fund money only in interest‑paying U.S. government securities and may buy or sell them at market or issue prices.

Full Legal Text

Title 42, §254o–1

The Public Health and Welfare, Source: USLM XML via OLRC

(a)There is established in the Treasury of the United States a fund to be known as the National Health Service Corps Member Replacement Fund (hereafter in this section referred to as the “Fund”). The Fund shall consist of such amounts as may be appropriated under subsection (b) to the Fund. Amounts appropriated for the Fund shall remain available until expended.
(b)For each fiscal year, there is authorized to be appropriated to the Fund an amount equal to the sum of—
(1)the amount collected during the preceding fiscal year by the Federal Government pursuant to the liability of individuals under section 254o of this title for the breach of contracts entered into under section 254l or 254l–1 of this title;
(2)the amount by which grants under section 254q–1 of this title have, for such preceding fiscal year, been reduced under subsection (g)(2)(B) of such section; and
(3)the aggregate of the amount of interest accruing during the preceding fiscal year on obligations held in the Fund pursuant to subsection (d) and the amount of proceeds from the sale or redemption of such obligations during such fiscal year.
(c)(1)Amounts in the Fund and available pursuant to appropriations Act may, subject to paragraph (2), be expended by the Secretary to make payments to any entity—
(A)to which a Corps member has been assigned under section 254f of this title; and
(B)that has a need for a health professional to provide primary health services as a result of the Corps member having breached the contract entered into under section 254l or 254l–1 of this title by the individual.
(2)An entity receiving payments pursuant to paragraph (1) may expend the payments to recruit and employ a health professional to provide primary health services to patients of the entity, or to enter into a contract with such a professional to provide the services to the patients.
(d)(1)The Secretary of the Treasury shall invest such amounts of the Fund as such Secretary determines are not required to meet current withdrawals from the Fund. Such investments may be made only in interest-bearing obligations of the United States. For such purpose, such obligations may be acquired on original issue at the issue price, or by purchase of outstanding obligations at the market price.
(2)Any obligation acquired by the Fund may be sold by the Secretary of the Treasury at the market price.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 338F of act
July 1, 1944, was renumbered section 338G by Pub. L. 101–597 and is classified to section 254p of this title. Another prior section 338F of act
July 1, 1944, was renumbered section 338G by section 201(2) of Pub. L. 100–177 and classified to section 254q of this title, prior to repeal by Pub. L. 100–177, title II, § 203, Dec. 1, 1987, 101 Stat. 999.

Reference

Citations & Metadata

Citation

42 U.S.C. § 254o–1

Title 42, The Public Health and Welfare

Last Updated

Apr 5, 2026

Release point: 119-73not60