Scholarships for Disadvantaged Students (SDS)

The Scholarships for Disadvantaged Students (SDS) program is administered by the Health Resources and Services Administration (HRSA), an agency within the U.S. Department of Health and Human Services. HRSA’s Bureau of Health Workforce, specifically the Division of Health Careers and Financial Support, oversees this funding opportunity. The program is designed to strengthen the national health workforce by increasing access to education for students from disadvantaged backgrounds. It reflects a long-standing federal commitment to addressing workforce shortages in healthcare, particularly in underserved and medically vulnerable communities. According to the notice, the program has supported over fifteen thousand graduates since 2012, many of whom go on to serve in primary care and high-need areas. The primary purpose of the SDS program is to provide financial support to eligible health professions schools so they can offer scholarships to students who demonstrate financial need and come from disadvantaged backgrounds. These backgrounds may be economic, educational, or geographic in nature, and must be documented using federal guidelines such as FAFSA data or institutional criteria. The program aims to increase enrollment, retention, and graduation rates of such students while also encouraging them to practice in primary care settings and underserved areas after graduation. The broader objective is to build a more equitable and accessible healthcare system by diversifying and expanding the workforce pipeline. Funding under this opportunity is distributed to accredited institutions of higher education that offer qualifying health profession programs. These institutions include schools of medicine, nursing, dentistry, pharmacy, public health, allied health, and behavioral health, among others. Individual students are not eligible to apply directly; instead, institutions receive funds and administer scholarships to qualifying students. Awards may be used for tuition, reasonable educational expenses, and living expenses, but are subject to strict limits. For example, annual scholarship amounts cannot exceed forty thousand dollars for most disciplines and fifty thousand dollars for dental students, and must represent at least half of a student’s tuition costs. The program does not require cost sharing, although institutions must maintain their prior level of non-federal spending on similar activities. This maintenance of effort requirement ensures that federal funds supplement rather than replace existing institutional support. Additionally, recipients must adhere to numerous federal regulations, including restrictions on allowable costs, reporting requirements, and compliance with anti-discrimination laws and program integrity standards. Institutions are also required to provide clinical training opportunities in settings such as primary care, rural, tribal, or medically underserved communities. The application process is conducted through Grants.gov and requires registration with both SAM.gov and Grants.gov systems. Applicants must submit a comprehensive application package that includes a project narrative, budget and budget justification, organizational documentation, and several required forms. The project narrative must address need, approach, work plan, evaluation, sustainability, and organizational capacity. Attachments include accreditation documentation, staffing plans, maintenance of effort documentation, and letters of support. The application is limited to sixty pages and must follow strict formatting guidelines. Applications are evaluated through a merit review process based on criteria such as need, response, performance management, impact, organizational capacity, and budget justification. Additional funding priority points may be awarded for institutions demonstrating strong outcomes in primary care placement, service in underserved communities, representation of underrepresented minority students, or location in health professional shortage areas. Awards are expected to be issued by early September 2026, with a period of performance extending through June 2031. The application deadline for this funding opportunity is July 28, 2026. The funding cycle is structured as a five-year program with annual budget periods. HRSA anticipates making approximately eighty awards, with a total program funding level exceeding fifty million dollars for fiscal year 2026. Institutions are encouraged to participate in informational webinars and consult HRSA contacts for guidance during the application process. The program is expected to recur annually, reflecting its ongoing role in federal workforce development efforts.

Strong applications demonstrate measurable outcomes in recruiting and graduating disadvantaged students and clearly align funding use with workforce shortages and primary care placement goals