; or (2) to affiliate with established programs described in paragraph (1). (b) Locations (1) In general The Secretary shall carry out the pilot program at not more than four covered facilities that have been selected by the Secretary for purposes of the pilot program. (2) Criteria The Secretary shall establish criteria for selecting covered facilities under paragraph (1). (c) Duration The Secretary shall implement the pilot program during the eight-year period beginning on the date that is 180 days after the date of the enactment of this Act. (d) Reimbursement of costs The Secretary shall reimburse each covered facility participating in the pilot program for the following costs associated with the pilot program: (1) Curriculum development. (2) Recruitment, training, supervision, and retention of residents and faculty. (3) Accreditation of programs of education under the pilot program by the Accreditation Council for Graduate Medical Education (ACGME) or the American Osteopathic Association (AOA). (4) The portion of faculty salaries attributable to activities relating to carrying out the pilot program. (5) Payment for expenses relating to providing medical education under the pilot program. (e) Period of obligated service (1) In general The Secretary shall enter into an agreement with each individual who participates in the pilot program under which such individual agrees to serve a period of one year of obligated service at a covered facility or a facility of the Department of Veterans Affairs for each year in which the individual participates in the pilot program under this section. (2) Breach An individual who participates in the pilot program and fails to satisfy the period of obligated service under paragraph (1) shall be liable to the United States, in lieu of such obligated service, for the amount that has been paid or is payable to or on behalf of the individual under the pilot program, reduced by the proportion that the number of days served for completion of the period of obligated service bears to the