whoa whoa whoa, you mean if we switch we aren't FUNDED????
Im a PGY2 psych - switching to FM or IM (international medicine hopeful) - I had NO IDEA I could potentially be a financial issue to a program?!
This is not a new problem. You are funded for the number of years that it takes to become BE in your chosen specialty once you enter the categorical track.
Beyond that, CMS (which provides the Medicare funding) is generally around 50% of its previous level. So, fellowships for example, are not fully funded by CMS and the program must either "eat" the difference or find another source. In the past, it used to be pretty common to switch residencies and there was little detriment to doing so; at some point CMS (formerly HCFA) decided that there needed to be some controls on people switching.
The idea was not really to punish those who switch once and in the middle of residency due to a change of heart, but rather to stop those who do residency, after residency, after residency....
In your case, you are funded for 4 years as a Psych resident. You have used 2 years of your funding, leaving 2 years left. If you were to switch fields, you can "transfer" those two years to IM or FM, but would have at least 1 year funded at a lower rate.
As Kent notes, it can be a problem, but in general if you are a good candidate and a program wants you, they will find a way to pay you.