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JFAC splits on rural nursing loan repayment; supplemental transfer fails, later funding approved
Summary
Committee members debated funding for the rural nursing loan repayment program (House Bill 213). An initial motion to transfer $2.25 million failed; the committee later approved a one‑time $375,000 supplemental and an ongoing $625,000 appropriation from the rural nursing repayment fund.
The Joint Finance‑Appropriations Committee took multiple votes Wednesday on the rural nursing loan repayment program established in House Bill 213 (2023), ultimately approving a scaled funding path after an initial motion failed.
Frances Lippitt, budget and policy analyst with legislative services, summarized that the program is a five‑year rollout originally funded with a $250,000 cash transfer for year one; the committee was asked to transfer the remaining $2,250,000 from the general fund to the dedicated rural nursing loan repayment fund, add a FY2025 supplemental of $375,000 and create an ongoing FY2026 appropriation of $625,000 to support future awards.
Representative Furness moved the combined transfer and appropriation package. That motion failed on a joint tally of 11 ayes, 7 nays and 2 absent/excused after senators and representatives voted differently on handling the transfer. Lippitt advised the committee this was a technical correction and a late trailer to HB213; proponents said nurses had not received expected loan repayments because year‑two funding was not released.
After discussion, the committee approved a one‑time FY2025 supplemental appropriation of $375,000 to allow year‑two awards to be paid. That motion passed on a joint roll call (12 ayes, 6 nays, 2 absent/excused). The committee then approved an ongoing FY2026 appropriation of $625,000 from the dedicated fund; the joint vote was 12 ayes, 6 nays, 2 absent/excused.
Representative Furness and others argued the action corrects an inadvertent funding lapse for a policy already adopted by the Legislature. Representative Tanner and others urged caution, noting other scholarships and federal programs cover nursing and expressing concern about duplicative programs.
What’s next: The committee’s due‑pass recommendations move through the appropriation process; the record notes the Senate and House handled a failed motion differently and staff will coordinate follow up with the Senate.
