Responding to Restrictive Caps on PA Student Loans (November 2025)
Last week, in accordance with the One Big Beautiful Bill Act (H.R.1) enacted in July, the U.S. Department of Education concluded its negotiated rulemaking session, where federal negotiators agreed to a definition of “professional program” that excludes PA students from eligibility for higher federal student loan borrowing. PA school is more expensive than the proposed cap, meaning that without access to sufficient federal loans, many students won’t have the means to complete their education.
The proposed cap under the new rule is $20,500 per year (standard graduate loan limit) and $100,000 aggregate total max. The U.S. DOE also cut Grad PLUS loans which typically supplement PA school costs after other financial aid has been calculated. If finalized as currently written, this rule would take effect by July 2026, impacting future PA students’ ability to access the loans they need as soon as the next academic cycle.
30–60 days following publication of published rule. Timeline to activate PAs.**
Effective Date
No later than July 26, 2026, per requirements under OBBA
**Note: Once the proposed rule opens for public comment, we will have a limited window to submit formal feedback and activate grassroots participation.
What Can You Do?
Sign and Share AAPA’s Petition: We are asking all PAs, PA students and aspiring PAs to sign AAPA's petition to the Department of Education, urging them to revise this proposal. We need a strong showing of public outcry, so please share the petition with your networks and encourage them to sign.
Share Your Personal Experience: TAPA will be submitting comments during the formal comment period. We are also collecting personal stories from those willing to share why student loans were essential to their education and what it would mean if future students could not access the funds needed to cover their training. Your voices and stories will help TAPA put a human face on this issue and show the Department what's truly at stake for the country's workforce and the patients PAs serve.
AAPA and TAPA are actively monitoring the situation as it develops and exploring all possible avenues available to ensure PA programs are recognized as professional degrees, and that future PAs can access the education they need to serve their communities.
Rural Health Transformation Program (RHTP): Texas Application Overview
The Rural Health Transformation Program (RHTP)—authorized under H.R. 1, the One Big Beautiful Bill Act—allocates $50 billion over five years to help states modernize and strengthen rural healthcare systems. Funding is awarded based on both state participation and policy readiness; it includes licensure compacts, workforce innovation and scope-of-practice reforms.
On October 13, TAPA President Sonali Weerasinghe went to Austin to provide public testimony to the Health and Human Services department regarding the importance of PAs in rural communities and to ask that HHS allocate funds towards PA programs and PA preceptorship in rural communities, as well as add financial incentives for practicing PAs in rural areas. Two additional TAPA members (PA Miggy Scott and PA Jessica Miller) provided personal and virtual testimony regarding their roles as telehealth PAs in West Texas and underscoring the role of PAs in these areas.
Texas formally submitted its RHTP application on Nov. 6, 2025, under the title: "Rural Texas Strong: Supporting Health & Wellness." (Read: Governor Abbott’s Announcement)
Texas Application Highlights:
Focus Areas
Prevention & Wellness: Chronic disease reduction through nutrition, fitness and community health programs.
Technology & Telehealth: Expansion of virtual care, AI-supported diagnostics and remote patient monitoring.
Workforce Development: Scholarships, relocation support, rural training and retention incentives for clinicians.
Infrastructure & Equipment: Upgrades for hospitals and clinics, plus strengthened cybersecurity.
Health Equity: Closing rural health gaps and improving access in underserved counties.
Funding Structure
$50 billion in federal funds distributed over five years.
Half distributed equally among approved states; the remainder awarded based on ruralness and reform readiness.
Relevance for Texas PAs
Workforce Expansion
PAs are explicitly recognized by CMS as essential to rural health transformation (RHT)—key to addressing provider shortages.
Scope of Practice & Licensure Compact
RHT scoring rewards states that have enacted or introduced PA Licensure Compact legislation and have modern, optimal scope of practice laws. Texas can increase competitiveness through continued modernization efforts.
Opportunities for Participation
Approved states will run competitive grant processes to fund projects in rural clinics, hospitals, and health systems. PAs and their organizations can apply for:
Telehealth and technology innovation pilots
Preventive health and chronic-disease programs
Rural training and workforce expansion grants
TAPA is Working to Ensure:
PAs are central to the implementation of Texas’s rural health strategy.
PA-led practices and rural providers can access RHT funding opportunities.
Legislative and regulatory modernization keeps Texas competitive in future RHT funding cycles.
Contact Us
Stay engaged through TAPA updates and consider how your organization can align with RHTP priorities in telehealth, workforce development and community health improvement.
TAPA will keep you updated on any news and developments.
Questions? Please contact us via email at tapa@tapa.org or by phone at 512-518-0120.
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