The REACH Act creates a new $10,000 annual tax credit for eligible rural health care providers who work at least 900 hours in a rural area. This benefit applies to primary care practitioners, mental health professionals, nurses, and medical residents participating in approved training programs. The credit is subject to an income limit, reducing the amount by $1 for every dollar of adjusted gross income over $170,000 until it reaches zero. These provisions are set to take effect for taxable years beginning after December 31, 2026, and will expire for years beginning after December 31, 2033.
The Rural Residency Planning and Development Act of 2026 authorizes the Secretary of Health and Human Services to provide grants to eligible entities for establishing new physician residency programs in rural areas. These three-year grants support training pathways in general primary care, high-need specialties, and maternal health, with a requirement that residents spend more than half their training time in rural settings. The bill also creates a separate four-year technical assistance program to help organizations apply for and manage these residency initiatives. Eligible recipients include public or private nonprofit and for-profit entities, Indian Tribes, rural hospitals, and medical schools. The legislation authorizes $12.7 million annually for fiscal years 2027 through 2031 to fund these programs.
