JFAC approves funding to restart rural nursing loan‑repayment awards after prior transfer fails in committee

The Joint Finance‑Appropriations Committee on March 12 approved one‑time and ongoing appropriations to fund the rural nursing loan‑repayment program established in House Bill 213 of 2023 after an earlier motion to transfer the program’s remaining cash into its dedicated fund failed in committee.

Representative Furness, who moved the actions before the committee, described the program as a five‑year effort created in 2023 that provides loan‑repayment assistance to nurses working in rural areas. LSO materials presented to the committee showed $250,000 was transferred to seed year one; the department and bill sponsors said year two awards went unfunded because a required cash transfer was not completed.

Votes and outcomes: an initial motion to transfer $2,250,000 from the General Fund into the rural nursing loan repayment dedicated fund to reserve cash for the life of the program failed in committee and will be transmitted to the Senate for further handling. After discussion the committee approved a one‑time supplemental appropriation of $375,000 for FY2025 from the rural nursing loan repayment fund to cover year‑two awards; the motion passed on roll call with committee majorities (final committee tally: 12 ayes, 6 nays, 2 absent/excused in the combined House and Senate committee total reported on the record). The committee later approved an ongoing FY2026 appropriation of $625,000 from the dedicated fund to continue the program’s payments; that motion passed in committee with a recorded majority.

Discussion: some members objected on policy grounds or because similar nursing incentives exist through the Launch Opportunity Scholarship and federal programs. Representative Tanner and others argued the state should consider consolidating multiple nurse‑support programs rather than sustaining overlapping mechanisms. Representative Furness said participating nurses are not “double dipping” and that the appropriation fulfills existing statutory policy.

Next steps: motions that failed in committee will be transmitted for Senate consideration; the committee’s due‑pass recommendations for the approved supplemental and ongoing appropriations will move forward for final appropriations action.

Ending: the committee restored funding sufficient to issue year‑two awards and provided an ongoing appropriation for FY2026, while members signaled interest in reviewing program overlap with other state and federal nursing incentives.