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A 5582

Creates the division of regulatory review and economic growth

2025 Regular Session Introduced by Andrea Bailey and 14 co-sponsors

Expands loan-repayment eligibility to cover for-profit behavioral health providers as approved sites, widening access to student loan relief for more practitioners.

REFERRED TO GOVERNMENTAL OPERATIONS
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Bill Summary · A 5582

Bill A 5582 — Summary

Bill A 5582, introduced May 5, 2025 and currently REFERRED TO GOVERNMENTAL OPERATIONS, would amend the Behavioral Healthcare Provider Loan Redemption Program established by P.L.2022, c.34. The introduced version expands where eligible loan-repayment benefits can be used and clarifies program parameters. The bill is sponsored by Assemblyman William A. Barclay and a broad slate of cosponsors.

What this bill does (high-level)

  • Expands the set of approved sites for the Behavioral Healthcare Provider Loan Redemption Program to include for-profit community providers, in addition to nonprofit providers, institutions of higher education, and certain government or school entities already identified by the Higher Education Student Assistance Authority (HESAA) in consultation with the Department of Health.
  • Maintains the program’s goal of assisting behavioral healthcare providers by redeeming qualifying student loan debt in exchange for service at an approved site.
  • Sets definitions and financial caps governing eligible loans and loan redemption, and clarifies administration and eligibility criteria.

Key provisions

  • Approved sites: The bill broadens eligibility to include for-profit community providers of behavioral and mental health services as approved sites, along with nonprofit providers, educational institutions, school districts, counties, and certain state agencies.
  • Eligible behavioral health providers: The program covers professionals including psychiatrists, psychologists, licensed clinical social workers, psychiatric nurse mental health clinical specialists, board-certified behavior analysts, licensed clinical alcohol and drug counselors, and other professionals the executive director of HESAA may add.
  • Eligible qualifying loans: Loans for the cost of attendance (undergraduate or graduate) used to obtain a degree in a mental/behavioral health field. Interest paid or due on these loans is eligible for reimbursement.
  • Loan redemption cap: The total amount of qualifying loans that can be redeemed remains subject to a cap—up to $150,000, or the maximum amount authorized by the federal government (whichever is greater)—considering the mix of state and potential federal/non-federal funding, in accordance with federal matching provisions (42 U.S.C. s.254q-1).
  • Program administration: The executive director of HESAA (in consultation with the Department of Health) administers and designates approved sites and eligible participants.
  • Definitions: The bill retains and clarifies several terms (e.g., “program,” “program participant,” “qualifying loan,” and “total and permanent disability”) to align with the existing statute and ensure orderly implementation.

Who is affected

  • Behavioral healthcare providers who contract with HESAA to practice at an approved site could be eligible for loan redemption, subject to the program’s caps and approval processes.
  • For-profit community behavioral/mental health providers become potential approved sites, expanding recruitment avenues.
  • Educational and governmental entities already involved in the program may see changes in site eligibility and enrollment dynamics.

Timing and implementation

  • Effective date: Immediate upon enactment, with the act applying to applications submitted on or after enactment.
  • Status: Referred to Governmental Operations in February 2025, with Assembly introduction and committee referral in May 2025.

Context and related measures

  • Related bills in prior sessions include A 4117, A 5044, A 10419, A 5720, A 4112, A 4717, A 5389, among others, indicating ongoing interest in loan redemption and workforce development for behavioral health.

Overall, A 5582 aims to broaden access to the Behavioral Healthcare Provider Loan Redemption Program by widening eligible sites to include for-profit providers, thereby potentially expanding the pool of providers who can receive student loan relief in exchange for service at approved sites.

Compiled from official sources — confirm details with the bill’s official record.

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