WASHINGON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.) and Representative Josh Harder (D-Calif.-09) introduced bicameral legislation to help address health care disparities by designating Health Investment Zones (HIZs) for areas facing measurable gaps in income, life expectancy, or the number of providers.
“While Donald Trump and Republicans refuse to take action to address the health care crisis, longstanding gaps in access to quality care are only growing more severe. Smart, targeted investments can prevent harmful health disparities while reducing ER use and hospitalization, provider shortages, and costs,” said Senator Padilla. “Congressman Harder and I are fighting to close these gaps by establishing 10-year Health Investment Zones so underserved areas receive the effective, affordable care they need.”
“This bill is a promise to reinvest in the very communities that Washington is trying to pull out of,” said Representative Harder. “By creating new Health Investment Zones right here in the Valley, we can close provider gaps and unlock an entire arsenal of tools and support for the families that need it most. Our families deserve reliable access to affordable health care, and that’s exactly what this bill does.”
Communities in California and across the nation are struggling with a lack of access to lifesaving health care services, driving up emergency room use, hospital admissions, and overall costs. However, with targeted investments, these gaps can be significantly reduced through strategic incentives, community partnerships, and loan repayment programs.
Successful state-level approaches have reduced more than 18,000 inpatient stays in three years and generated an estimated $108 million in net savings. The Health Investment Zones Act scales that approach nationally by designating HIZs and aligning tax, grant, loan-repayment, and Medicare incentives to expand services where they’re needed most.
The bill focuses on improving outcomes for conditions like diabetes, cardiovascular disease, and maternal health, with a 10-year report to measure progress in health, access, and cost reductions.
In addition to designating HIZs, the Health Investment Zones Act would:
- Expand the Work Opportunity Tax Credit to include employers hiring qualified Health Investment Zone workers.
- Create a 30% individual tax credit for wages earned by workers employed in HIZ-based health care roles.
- Establish a grant program for zone coalitions to improve health outcomes, with subgrants of up to $5 million for clinics and practitioners.
- Support projects such as mobile clinics, patient transportation, facility upgrades, translation services, and community wellness initiatives.
- Establish a student loan repayment program offering up to $10,000 per year (maximum $100,000) for full-time health professionals serving in HIZs.
- Provide a 10% Medicare Part B bonus for services furnished in HIZs, with an additional 5% for care delivered at Federally Qualified Health Centers (FQHCs), FQHC Look-Alikes, or independent clinics.
Senator Padilla has long been a leader in the fight to make health care more equitable, affordable, and accessible in the United States. In 2024, Padilla introduced the Health Equity and Accountability Act (HEAA) to address health disparities among racial and ethnic minorities as well as women, the LGBTQ+ community, rural populations, and socioeconomically disadvantaged communities across the United States. Last year, Padilla, Senator Adam Schiff (D-Calif.), and Senator Cory Booker (D-N.J.) announced the Equal Health Care for All Act, legislation that would make equal access to medical care a protected civil right to help address the racial inequities and structural failures in America’s health care system that have led to higher mortality rates in communities of color. He also joined Senator Bernie Sanders (I-Vt.) and over 100 lawmakers in reintroducing the Medicare for All Act, historic legislation that would guarantee health care as a fundamental human right to all people in the United States, regardless of income or background.
A one-pager on the bill is available here.
Full text of the bill is available here.