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State TEACH program distributes $6.8M in first year; AHCA seeking federal approval for expansion

5938484 · October 7, 2025
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Summary

AHCA reported $6.8M expended across TEACH program grantees in 2024–25, reimbursing about 1,800 students at 229 locations; the state is seeking federal support but CMS has signaled limits on new workforce demonstrations.

The Agency for Health Care Administration reported to the Senate Health Policy Committee that the TEACH program, created by 2024 legislation (Senate Bill 7016), expended approximately $6.8 million for state fiscal year 2024–25 and reimbursed students at dozens of provider locations.

Deputy Secretary Brian Meyer said the program reimbursed roughly 1,800 unique students for nearly 380,000 clinical hours across 229 unique facilities statewide during the initial rollout. The state distributed funds to 59 parent organizations; the largest single grantee disbursed nearly $700,000 for 146 students across 14 facilities. The program included a variety of student types (medical residents, behavioral health students, third‑year medical students and dental students/hygienists) with different hourly reimbursement rates set in statute.

Meyer told senators the TEACH program received recurring state appropriations of $25 million and an additional $2 million set aside for newly designated behavioral health teaching hospitals. Facilities must meet accreditation standards and agree to submit quarterly reports; non‑accredited sites are capped at $75,000 per facility per fiscal year while ACGME/COCA‑accredited facilities are capped at $100,000.

The agency completed rulemaking for TEACH (rules effective Oct. 26, 2025) and added a new nursing student category at $22 per hour for 2025–26. Meyer said the agency is finalizing agreements for the 2025–26 cycle and expects program participation to grow; in 2025–26 there were 61 parent organizations covering about 316 facilities.

Meyer described a federal effort to obtain additional federal funding via a Section 1115 demonstration; AHCA submitted a waiver in May 2025 but said CMS has signaled it is not approving new 1115 workforce demonstrations and that an approval for the waiver is unlikely at present. The agency said it will continue engaging with CMS and will submit a TEACH program report to the Legislature by Dec. 1, 2025.

Ending: The TEACH program has reported early statewide reach and measurable student participation. AHCA said it will continue outreach, finalize contracts for 2025–26, and pursue federal options while preparing a formal legislative report.