JFAC restores funding for rural nursing loan‑repayment program after split votes and follow‑up motions

The Joint Finance‑Appropriations Committee considered a set of actions to fund the rural nursing loan‑repayment program created in House Bill 213 (2023) after testimony that year‑two awards were not distributed because cash transfers and appropriations had not been completed.

Legislative Services analysts explained the program’s five‑year design and the need for a cash transfer to the dedicated Rural Nursing Loan Repayment Fund so year‑two awards could be issued. The analysts recommended: (1) transfer $2,250,000 from the general fund to the dedicated fund to set aside cash for the program’s life, (2) a FY2025 supplemental appropriation of $375,000 to allow year‑two awards to be paid this year, and (3) an ongoing appropriation of $625,000 from the dedicated fund starting FY2026 to sustain the program for remaining years, with a base reduction to be requested in FY2029 when the program sunsets.

Representative Furness moved the initial transfer motion and Senator Wintrow seconded; members questioned whether the program duplicates other scholarships and federal programs that support nursing. Senator Ward Engelking and others said JFAC is required to fund policy that has been enacted; opponents argued the program overlaps with launch opportunity scholarships and other federal programs. The committee recorded roll call votes disclosing a split result on the initial transfer motion: it failed to secure the affirmative majority required in the Senate delegation and was identified as failed on the joint record and to be sent to the Senate for further action.

After that result the committee took separate motions to (a) add a one‑time appropriation of $375,000 from the rural nursing loan repayment fund for FY2025 and (b) add an ongoing FY2026 appropriation of $625,000 from the same dedicated fund. Those motions were moved by Representative Furness and seconded by Senator Wintrow. Debate continued about redundancy; Representative Tanner and Senator Zieterville explained their no votes were driven by concerns about overlap and program design.

The committee approved the one‑time FY2025 addition and the FY2026 ongoing addition on recorded roll calls; the final recorded totals for the FY2026 ongoing addition were a combined 12 ayes, 6 nays and 2 absent/excused across the joint roll call and the motion carried, with the committee recording a due‑pass recommendation.

Why it matters: the program repays student loans for nurses practicing in designated rural areas; funding gaps delayed year‑two payments and prompted requests for corrective appropriations. Supporters said recipients had not ‘‘double dipped’’ and that the legislature voted the policy into law; opponents argued the state now has multiple programs that overlap and urged legislative consolidation or policy review.

Ending: committee staff will prepare the fiscal and language recommendations for inclusion in final budget actions and note that the underlying statutory policy will remain in effect until changed through separate legislation.