A bill to amend section 771 of the Public Health Service Act to require an increase in the enrollment of third-year medical students in the school year 1978-1979 as a condition to medical schools' receiving capitation grants under section 770 of such act.

(Measure indefinitely postponed in Senate, H.R. 9418 passed in lieu)

Amends the Public Health Service Act by repealing the provision in such Act relating to the reservation of class positions in U.S. medical schools for U.S. citizens studying abroad.

Authorizes the Secretary of Health, Education, and Welfare to make grants to public or nonprofit institutions which provides graduate or specialized training in public health.

Allows such funds to be granted to individuals with work experience in health services who are studying preventive medicine or dentistry.

Increases the amount authorized to be appropriated for grants for public health studies from $8,000,000 to $9,000,000 for fiscal year 1979, and from $9,000,000 to $10,000,000 for fiscal year 1980.

Revises the eligibility of the medical school class of 1980 in applying for National Health Service Corps Scholarships.

Authorizes the disbursing agent of Saint Elizabeths Hospital, Washington, D.C., subject to approval by the Secretary of the Treasury, to invest hospital funds which are in excess of current needs, in interest-bearing obligations of the United States.

Authorizes the Secretary to insure loans for students who have been accepted for enrollment at an eligible institution of health care education, or are already attending an eligible institution.

Authorizes the insurance of loans made to individuals who have previously had a Federally insured student loan and who agree to expend such funds solely for the repayment of interest due on such loans. Stipulates that interest payments on such loans may be deferred.

Permits the Secretary to allow the Indian Health Service to utilize nonprofit recruitment agencies to assist in obtaining personnel for the Public Health Service.

Defines "eligible institutions" to mean a school of medicine, osteopathy, dentistry, optometry, pharmacy, podiatry, veterinary medicine and public health, within the United States.

Prohibits any entity under this Act, which receives Federal funds, from discriminating against any applicant because of the applicant's views on abortions.