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HF 4067

Physical therapists and physical therapist assistants eligible for loan forgiveness under the health professional education loan forgiveness program, and money appropriated.

2025-2026 Regular Session Introduced by Kristin Bahner and 6 co-sponsors

Minnesota expands its loan forgiveness program to include physical therapists and physical therapist assistants, offering a three-year service obligation in designated underserved

Author added Johnson, P.
#appropriations #healthandhealthdepartment #occupationsandprofessions
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Bill Summary · HF 4067

Summary of HF4067 (2025-2026) – Minnesota: Loan Forgiveness for Physical Therapists and Physical Therapist Assistants

Purpose and intent

HF4067 proposes to expand Minnesota’s Health Professional Education Loan Forgiveness Program (HPELFP) to include physical therapists (PTs) and physical therapist assistants (PTAs). The bill would add PTs/PTAs to the list of health care professionals eligible for loan forgiveness and appropriates funding to support this new eligibility. The objective is to help recruit and retain PTs and PTAs in designated rural areas and underserved urban communities, addressing workforce shortages in physical therapy.

Key provisions and changes

Section 1 — Definitions

  • Adds explicit definitions for:
    • Physical therapist (licensed under sections 148.65 to 148.78)
    • Physical therapist assistant (licensed under sections 148.65 to 148.78)
  • Retains and updates existing definitions for other health care workers and concepts (e.g., rural designations, emergency circumstances, various health professions, and underserved areas).
  • The additions ensure PTs and PTAs are recognized within the statutory framework governing the loan forgiveness program.

Section 2 — Availability of funds

  • The Health Commissioner would allocate HPELFP funds to:
    • Medical residents, physicians, mental health professionals, plus new eligible groups: PTs and PTAs, and alcohol and drug counselors, who commit to practice in designated rural areas or underserved urban communities, or who specialize in pediatric psychiatry.
    • Other health care professionals for teaching in postsecondary programs or practicing in designated rural/underserved settings (e.g., midlevel practitioners, nurses, pharmacists, advanced dental therapists, dental therapists, public health nurses, etc.).
  • The bill clarifies that appropriations for HPELFP are available until expended, with biennial lapse provisions: any unobligated funds at the end of a biennium would cancel to the fund, unless committed.

Section 3 — Eligibility

  • To participate, an individual must:
    • Be a medical or dental resident, licensed pharmacist, or be enrolled in a program to become a dentist, dental therapist, advanced dental therapist, mental health professional, alcohol/drug counselor, pharmacist, PT, PTA, public health nurse, midlevel practitioner, or RN/LPN (as applicable). The commissioner may also consider graduates who are licensed and in practice.
    • Submit an application to the commissioner of health.
  • Once selected, participants must sign a contract obligating a minimum service term:
    • General rule: minimum 3-year full-time service obligation after training completion.
    • Exceptions:
    • Nurses: minimum 2-year service obligation.
    • Nurses in hospital nurse positions under a specific clause: 2-year obligation.
    • Nurses teaching: minimum 2-year teaching obligation.
  • For PTs/PTAs, this adds a three-year service obligation structure aligned with other eligible professions.

Section 4 — Appropriation

  • New appropriation: $500,000 in fiscal year 2027 from the general fund to the Commissioner of Health for loan forgiveness under Minnesota Statutes, § 144.1501, specifically for eligible physical therapists and physical therapist assistants.

Who is affected

  • Eligible participants include:
    • Physical therapists and physical therapist assistants (newly added).
    • Other health professionals already covered or newly added under the bill (e.g., physicians, medical residents, mental health professionals, pharmacists, nurses, midlevel practitioners, etc.) who meet designated rural or underserved area criteria.
  • Geographic focus: designated rural areas and underserved urban communities in Minnesota.
  • Employers likely affected: hospitals (including nonprofit hospitals), nursing facilities, home care providers, and healthcare facilities serving rural or underserved populations.

Procedural and timeline aspects

  • Introduced and referred to the Health Finance and Policy committee (March 2026).
  • Proposed appropriation begins in fiscal year 2027 (with a $500,000 general fund allocation for PTs/PTAs).
  • The program’s availability and technical definitions would be governed by existing statute (Minnesota Statutes 2024, § 144.1501), updated by HF4067 to include PTs/PTAs.
  • Eligibility and contract terms mirror other HPELFP participants, with the standard three-year service obligation, subject to the noted exceptions for nursing roles and teaching.

Potential impact

  • Expands the pipeline of eligible professionals who can receive loan forgiveness in exchange for service in underserved communities, potentially improving access to physical therapy in rural and urban underserved Minnesota areas.
  • Provides a targeted funding mechanism to recruit and retain PTs and PTAs, addressing workforce shortages in physical therapy.
  • Creates a clear funding commitment (initially $500k in FY2027) to sustain the expanded program.
  • Aligns Minnesota’s loan forgiveness framework with broader health workforce needs by including additional allied health professionals.

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

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