STAR Plus Scholarship Act

This bill amends the Public Health Service Act to create a scholarship program aimed at increasing the workforce in substance use disorder treatment and behavioral and mental health fields. It establishes the Substance Use Disorder Treatment and Behavioral and Mental Health Workforce Scholarship Program, administered by the Health Resources and Services Administration, to award scholarships to students who commit to working in underserved areas after graduation.

Sec. 2, Substance Use Disorder Treatment and Behavioral and Mental Health Workforce Scholarship Program: The Secretary must establish a scholarship program for full-time students enrolled in accredited programs leading to covered employment, such as physicians, psychiatric nurses, social workers, or addiction counselors. Eligible applicants must sign a contract agreeing to serve in a mental health professional shortage area for one year per year of scholarship received. The Secretary must provide clear application and contract information, consider applicants' interest in the field, and prioritize those likely to continue serving in shortage areas or from underrepresented groups. Scholarships cover tuition and reasonable educational expenses, and the Secretary may contract directly with educational institutions. Recipients must work full-time in covered employment in designated shortage areas, high drug overdose death rate areas, or other facilities determined by the Secretary. A liquidated damages formula may be established for contract breaches, but failure to complete the full service period alone is not a breach if years paid for were completed in good faith. A fund is created to use recovered breach amounts to help entities recruit replacement health professionals. The bill authorizes $75,000,000 per year for fiscal years 2026 through 2030. Additionally, scholarships under this program are excluded from the recipient's gross income for tax purposes, effective for taxable years ending after enactment.