What does Preamble of HR 7496 do?

This bill, formally titled 'To provide for the designation of areas as Health Investment Zones to reduce health disparities and improve health outcomes in such areas, and for other purposes,' aims to establish Health Investment Zones. The bill intends to reduce health disparities and improve health outcomes within designated areas. The bill was introduced in the House of Representatives on February 11, 2026, by Mr. Harder of California.

What does SHORT TITLE. of HR 7496 do?

This bill is formally titled the Health Investment Zones Act of 2026.

What does DESIGNATION OF HEALTH INVESTMENT ZONES. of HR 7496 do?

This section establishes a process for designating areas as Health Investment Zones to reduce health disparities and improve health outcomes. To be designated, an area must be contiguous and demonstrate measurable health disparities, including factors like income below 150% of the Federal poverty line, high rates of SNAP participation, lower life expectancy, higher instances of low birth weight, or designation as a health professional shortage area. Applications for designation must be submitted by a community-based nonprofit organization or local governmental agency in coalition with various healthcare and social service providers. Applications must include a plan to reduce health disparities, reduce healthcare costs, improve health outcomes, and utilize specific incentives. The Secretary will consider geographic diversity and encourage a diverse pool of applicants, including those in rural areas. Priority will be given to applications demonstrating stakeholder support, a plan for long-term funding, integration with state health plans, and a plan for evaluation. Designations will be in effect for 10 years after the first designation.

What does TAX INCENTIVES. of HR 7496 do?

This section establishes tax incentives related to hiring workers in Health Investment Zones. It amends the Work Opportunity Credit (Section 51(d)(1) of the Internal Revenue Code) to include 'qualified Health Investment Zone workers'. It defines 'qualified Health Investment Zone worker' as an individual certified by a local agency with a principal place of employment within a Health Investment Zone. It defines 'qualified Health Investment Zone work' as employment promoting healthcare access within a Health Investment Zone. It creates a new credit (Section 25G) allowing a 30% credit against taxes for wages paid to qualified Health Investment Zone workers for qualified Health Investment Zone work. The amendments apply to amounts paid or wages received after the date of enactment of this Act.

What does GRANTS. of HR 7496 do?

This section authorizes grants to community-based nonprofit organizations or local governmental agencies in areas designated as Health Investment Zones. The purpose of these grants is to support efforts in reducing health disparities and improving health outcomes within those zones. Grant funds must be consistent with a plan submitted under section 2(d)(1). Grantees may award subgrants to health care practitioners within the Health Investment Zone to improve or expand healthcare delivery. Subgrants to practitioners are capped at $5,000,000 or 50% of the costs of equipment or improvements, whichever is less. Eligible practitioners must own or lease a health care facility or provide care within such a facility. Innovative public health strategies that may be funded include internships, resources for non-English speakers, mobile clinics, transportation assistance, access to healthy food and housing, and facility improvements or equipment. Subgrantees may also implement these innovative strategies.

What does STUDENT LOAN REPAYMENT PROGRAM. of HR 7496 do?

This section establishes a student loan repayment program administered by the Secretary. The program provides payments on principal and interest for eligible Health Investment Zone practitioners who agree to provide health care services in a Health Investment Zone. Payments are capped at $10,000 per year, with a maximum of $100,000 over 10 years. Payments made under this section count toward existing student loan forgiveness or cancellation programs. Borrowers cannot receive payments for the same service from multiple federally supported loan programs. Practitioners cannot receive payments for loans that have already been forgiven, cancelled, or repaid. An 'eligible educational loan' is defined as any federally funded or guaranteed student loan. An 'eligible Health Investment Zone practitioner' must agree to provide full-time health care services in a Health Investment Zone for at least one year and have one or more eligible educational loans.

What does INCENTIVE PAYMENTS FOR MEDICARE PART B ITEMS AND SERVICES of HR 7496 do?

This section amends Section 1833 of the Social Security Act to establish incentive payments for Medicare Part B items and services furnished in Health Investment Zones. The incentive payment is generally 10 percent of the payment amount for items and services provided in designated Health Investment Zones. An additional 5 percent payment is provided for services furnished at freestanding physician offices or clinics, or Federally Qualified Health Centers. Specific services, including annual wellness visits, diabetes self-management training, chronic care management, and preventative screenings, receive a 10 percent incentive payment. A freestanding physician office or clinic is defined as one billing with place of service codes 11 or 22 and not owned or controlled by a hospital system. The calculation of these additional payments is coordinated with other payment adjustments under subsections (m) and (z) to avoid double payments.

What does REPORTING. of HR 7496 do?

This section mandates a report to Congress regarding the implementation and results of the Act. The report is due within 10 years of the first Health Investment Zone designation. The report must detail the number and types of incentives provided in each Health Investment Zone. The report must include evidence of the incentives' impact on attracting healthcare practitioners. The report must assess the incentives' effect on reducing health disparities and improving health outcomes. The report must evaluate the incentives' impact on reducing health costs and hospital admissions/readmissions. The report must examine the incentives' effect on access to primary care and emergency room utilization.

What does DEFINITIONS. of HR 7496 do?

This section defines key terms used within the Act. A 'Health Investment Zone' is an area designated under section 2. A 'Health Investment Zone practitioner' is a licensed healthcare provider offering primary care, behavioral health services, or dental services. These practitioners must also be a participating provider in Medicare or a State Medicaid plan. The term 'Secretary' refers to the Secretary of Health and Human Services.

What does AUTHORIZATION OF APPROPRIATIONS. of HR 7496 do?

This section authorizes appropriations to carry out the Act. The authorized funding period begins on the date of enactment of the Act. The funding period ends on the last day of a 10-year period beginning when the first Health Investment Zone is designated.

Back to bills

Health Investment Zones Act of 2026 — HR. 7496

Last updated: 2/11/2026 · Introduced: 2/11/2026

Author: Josh Harder (D-CA)

TL;DR (AI)

This bill establishes Health Investment Zones (HIZ) in areas demonstrating significant health disparities, requiring a plan to reduce disparities, lower costs, and improve outcomes.
It expands the Work Opportunity Credit and creates a new tax credit to incentivize hiring workers within HIZs.
The bill authorizes grants to community organizations and local agencies within HIZs to fund programs addressing health disparities, including subgrants to healthcare practitioners.
It creates a student loan repayment program offering up to $100,000 in assistance to healthcare practitioners who provide services in HIZs.
Medicare payments for certain items and services provided in HIZs will receive an additional 10% incentive payment, with an additional 5% for services at freestanding physician offices or clinics and Federally Qualified Health Centers.

119th Congressin committeeS. 3840(In Committee)Official page

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Includes provisions on preamble, short title., and 8 more.

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