Nurse Corps Tax Parity Act Would End ‘Unjust Disparity’

• The recently introduced Nurse Corps Tax Parity Act would eliminate the requirement for Nurse Corp participants to pay federal income taxes. 
• If approved, the measure would align the Nurse Corps program with the National Health Service Corps, which is also administered by the Health Resources and Services Administration. 
• Bills were introduced in both the House of Representatives and the Senate. 

Nurses participating in the federal Nurse Corps program might not be required to pay income tax on student loan repayments and scholarships. 

Sens. Roger Wicker and Jeff Merkley, co-chairs of the Senate Nursing Caucus, introduced the bipartisan the Nurse Tax Parity Act earlier this month. If approved, it would align with the National Health Service Corps, which already is not subject to federal income tax. 

“As the husband of a nurse, I know frontline nurses are the backbone of our communities, helping patients and families through both joyous and challenging times,” Merkley said in a news release. “Nurse Corps members build healthier communities in the areas of greatest need, but these heroes are unfairly taxed in ways other health professionals are not. The bipartisan Nurse Corps Tax Parity Act ends this unjust disparity and ensures nurses receive the fair treatment they deserve.”  

A companion bill also was introduced in the House of Representatives by Reps. Brian Fitzpatrick, Mike Thompson, and Jen Kiggans. 

What is the Nurse Corps Program?

The Nurse Corps Program was established in 2002 to help “alleviate the critical shortage of nurses across the United States and its territories,” according to the Health Resources and Services Administration. Loan repayment and scholarships are offered through the program, which currently has more than 3,600 providers across the United States. 

The loan repayment program pays up to 85% of “unpaid nursing education debt” for those who work at least two years at a facility designated with a critical nursing shortage or an eligible nursing school. RNs, APRNs, and nurse faculty can apply. 

Those accepted into the scholarship program have their tuition, fees, and “other educational costs” covered, in addition to a monthly stipend, according to HRSA. 

As of January 2025, the Nurse Corps program has: 

• More than 900 scholars preparing to work at a Nurse Corps site after graduation. 
• Nearly 300 faculty members training the next generation of nurses. 
• More than 600 clinicians at community health centers. 
• More than 800 participants at nearly 500 rural sites and schools. 

HRSA also administers the National Health Service Corps, which offers similar programming but is not subject to federal income taxes. 

Nursing Industry Support

Nursing organizations like the American Nurses Association and American Association of Colleges of Nursing have thrown their support behind the bipartisan measure. 

ANA President Jennifer Mensik Kennedy, PhD, MBA, RN, NEA-BC, FAAN, said in a news release that the organization is grateful to legislators for supporting a “strong, more equitable health system.”

“Every nurse who chooses to serve in an underserved community is making a powerful commitment—to patients, to equity, and to the future of health care,” she stated. “The reintroduction of the Nurse Corps Tax Parity Act is a meaningful step toward recognizing that commitment. Removing this unfair tax burden honors the selfless work of nurses and helps ensure that more of them can afford to answer the call to care where they are needed most.” 

Similarly, AACN President and CEO Dr. Deborah Trautman said the legislation underscores the importance of the Nurse Corps program on patients. 

“As we strive to address our nation’s healthcare needs, particularly in critical shortage facilities, health professional shortage areas, and medically underserved regions, supporting the nursing workforce is essential,” Trautman said. 

The Bottom Line

Recently introduced bipartisan legislation would remove federal income tax requirements from the Nurse Corps program. If approved, this would put the program on the same playing field as the National Health Service Corps, which also is operated by the Health Resources and Services Administration. 

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