In 2023, the USDA’s Veterinary Medicine Loan Repayment Program (VMLRP) directed approximately $9 million toward enhancing veterinary services in underserved rural areas. This federal initiative provides up to $25,000 annually to offset veterinary educational debt for up to three years of service in USDA-designated veterinary shortage areas.
VMLRP 2023 Report Highlights
In April, the USDA’s National Institute of Food and Agriculture (NIFA) released its VMLRP report for the federal fiscal year 2023 (FY23), spanning from October 1, 2022, to September 30, 2023. During this period, $8.6 million was awarded to 88 veterinarians.
Attracting and Retaining Veterinarians
The VMLRP aims to recruit and retain veterinarians specializing in food animal and public health in USDA-designated shortage areas by alleviating educational debt burdens. Since its inception in 2010, NIFA has processed 2,197 applications from 1,530 unique applicants, awarding 883 veterinarians across the nation.
Awardees are eligible to reapply for continued participation in their originally awarded shortage area. The repayment amount for renewal agreements depends on the applicant’s remaining eligible veterinary school debt after their initial agreement period.
Key Findings from the Latest VMLRP Report
- Applicant Profile: Last year’s applicants typically applied four years post-graduation, with graduation years ranging from 2003 to 2023.
- Top Veterinary Schools: Iowa State University and Washington State University had the most applicants, with 15 and 14 alumni respectively.
- Debt Statistics: The average eligible veterinary student debt for applicants was $148,900, while new awardees had an average debt of $162,785 compared to $103,366 for renewal awardees.
- State Representation: Kansas led with the highest number of awardees, totaling 12 new and renewal participants.
Veterinary Shortage Situations
In 2023, NIFA received 136 applications (109 new, 27 renewals) and awarded all of them. A record 237 veterinary shortage situations were designated in 47 states, with awards made in 60 of these areas. Additionally, 20 renewal applicants received awards for previously designated shortage areas.
VMLRP Shortage Classifications
NIFA categorizes veterinary shortages into three types based on practice needs and full-time equivalent (FTE) employees:
- Type 1 Shortages: Require at least 80% FTE in food animal practice. Out of 28 shortages, six (21.4%) were filled in five states, with one renewal award from a pre-FY23 designation.
- Type 2 Shortages: Located in rural areas, requiring at least 30% FTE in food animal medicine. Of 173 shortages, 47 (27.2%) were filled in 26 states, with 16 renewal awards from pre-FY23 designations.
- Type 3 Shortages: Demand at least 49% FTE in public practice. NIFA allocates 10% of VMLRP awards to type 3 shortages. Seven (19.4%) were filled in six states, with three renewal awards from pre-FY23 designations.
Legislative Support
From the VMLRP funding last year, $2.4 million was allocated to offset federal tax liabilities for awardees. The AVMA is working with Congress to eliminate this tax through the Rural Veterinary Workforce Act (H.R. 4355/S. 2829), formerly known as the Veterinary Medicine Loan Repayment Program Enhancement Act. The USDA has recently urged the passage of this act in its proposed FY25 budget.
The bill aims to expand the program by ending federal taxation of VMLRP awards, addressing the challenges faced by ranchers and farmers in rural communities in securing essential veterinary services for livestock.
