The House Labor & Industry Committee on a roll-call vote reported House Bill 1676, which would establish a nursing shortage assistance program within the Pennsylvania Department of Labor & Industry.

The bill as presented would provide grants to "qualified nursing servicers" to assist nursing students with securing post-graduation employment and repaying student loan expenses incurred while earning a nursing degree from an educational institution located in Pennsylvania. The legislation specifies awards of up to $10,000 per year, with a potential total of $30,000 per eligible student over multiple years.

The prime sponsor said the program is aimed at recruiting and retaining bedside, acute-care registered nurses trained in Pennsylvania and emphasized the aging workforce and growing demand. "Nursing care, bedside care is essential," the sponsor said, adding that hospitals are already spending heavily on temporary contract labor and signing bonuses and that the program is intended to help keep nurses in Pennsylvania hospitals, especially rural systems.

Several lawmakers questioned whether the program would address underlying causes of the shortage. Representative Anderson said private employers already offer larger packages in some systems and described the grant as small compared with market incentives, saying, "I am going to be an absolute no on this bill." Anderson cited examples he said hospitals offer, including up to $41,000 at one health system and as much as $46,000 at another, combining sign-on bonuses and loan repayment.

Members also asked about program details. The sponsor said applicants would be accredited Pennsylvania nursing programs partnered with hospitals and that the grants involve a partnership between a school and a hospital; however, the sponsor said the bill does not require a multiyear in-state employment commitment. A committee member asked whether award recipients would be required to work in Pennsylvania for a set period; the sponsor replied, "No. I don't believe so." Another member pressed on who would apply for and receive funds: the bill allows a "qualified nursing servicer" to apply. Committee staff said existing pilot programs use intermediaries such as Nursing Scholars and a recruiter called Navigate to coordinate schools, hospitals and students.

Supporters said pilot projects using similar intermediaries increased pipelines and filled RN targets in some rural systems. Critics said the bill risks sending public funds through intermediaries without clear oversight and that it focuses on downstream loan repayment rather than expanding nursing education capacity — for example, the number of clinical preceptors and faculty needed to increase class sizes.

After discussion, the committee voted to report the bill favorably as committed. The committee chair said the bill will move to the House floor for further consideration.