House committee hears bill to fund loan repayments to place veterinarians in rural Montana

Representative Greg opened the hearing on House Bill 860, calling it “a critical piece of legislation aimed at addressing the severe shortage of veterinarians in Montana, Montana's rural and underserved areas.” The bill would create the Montana Veterinary Workforce Act, a student loan repayment assistance program for veterinarians who commit to practicing in underserved rural areas for four years.

Jocelyn Cahill of Rocky Vista University College of Veterinary Medicine testified in support and described program mechanics: starting in the 2026–27 academic year the program would select up to four students annually, giving preference to Montana residents and providing up to $100,000 of support over the course of a student’s veterinary education. Cahill said the program differentiates payments by program length: $25,000 per year for students in a four-year DVM program and $33,333 per year for students in a three-year program at Rocky Vista, which opens in Billings.

Industry groups and rural producers backed the proposal. Ellie Bridal, representing the Montana Stock Growers Association and allied organizations, said the shortage of large-animal veterinarians creates production losses and urged passage. Stuart Doggett of the Montana Veterinary Medical Association and Dr. Bob Murtaugh, founding dean at Rocky Vista’s veterinary college, also supported the bill and described how high student debt and long travel distances deter graduates from rural practice.

Committee members pressed witnesses on funding and administration. Ms. Cahill said the appropriation in the draft totals $425,000 for the biennium, which she said covers three cohorts under the bill’s timing assumptions plus $20,000 in administrative costs for the Office of Commissioner of Higher Education (OCHE). She explained the selection and oversight roles: OCHE would administer the program and an advisory committee would help define underserved areas and determine eligibility. Derek Bell of the Department of Revenue explained section 11’s tax treatment: federal loan forgiveness is taxable at the federal level and, under the bill, would be added back out on Montana individual tax returns to avoid state tax effects.

Ms. Cahill and sponsors clarified participant obligations: students accepted into the program must be enrolled and in good standing at an accredited DVM program, receive annual reimbursements once enrolled, and after graduation have 180 days to establish practice in an OCHE-defined underserved area. Participants must remain and practice for four years to earn full forgiveness; failure to meet terms requires repayment. Committee members asked whether loan forgiveness payments could be recycled back into the program; witnesses said forgiveness is not a revenue source for ongoing program funding.

The committee closed the hearing on HB 860 with sponsor and proponents available for follow-up questions and fiscal-note work. No final action on HB 860 was taken during the session recorded in the transcript.