Committee splits on rural nursing loan‑repayment actions; supplemental and ongoing funding ultimately advance

The Joint Finance‑Appropriations Committee on March 12 considered multiple corrective actions tied to House Bill 213 (2023), the rural nursing loan repayment program, after staff told the committee that the program was funded initially but missed the year‑two transfer that releases awards.

Legislative Services Office analyst Alex Williamson explained that the original program design transferred $250,000 to fund year one but that no cash transfer had been made for year two. The committee considered three actions: a transfer of $2.25 million from the general fund into the rural nursing loan repayment dedicated fund to set aside cash for the program life; a supplemental one‑time appropriation of $375,000 for FY 2025 to pay year‑two awards; and an ongoing FY 2026 appropriation of $625,000 for the life of the program, with a required base reduction when the program sunsets.

The initial motion to transfer the full remaining $2.25 million failed to attain a Senate committee majority (Senate 5 aye, 4 nay, 1 absent; House 6 aye, 3 nay, 1 absent; combined 11‑7‑2). Committee minutes record that the motion “failed and will be sent to the Senate.” Representative Furness then moved a one‑time FY 2025 appropriation of $375,000 from the rural nursing loan repayment fund; that motion carried in committee (combined total recorded as 12 ayes, 6 nays, 2 absent/excused) and received a due‑pass recommendation. The committee later approved an ongoing FY 2026 addition of $625,000 from the same dedicated fund (committee roll calls show combined totals of 12 ayes, 6 nays, 2 absent/excused) and carried a due‑pass recommendation.

Debate in committee included differing views on program redundancy. Representative Tanner noted other programs and federal funds that now support nursing‑related initiatives and said she voted no because “we have too many different funding mechanisms” and suggested consolidation. Senator Ward Engelking and Representative Furness argued that JFAC must fund programs that are in statute and that the nurses who applied were not “double dipping.” Representative Furness said the affected nurses “are not receiving launch money and they’re not receiving other federal money” and that the program’s participants had missed expected payments.

The committee’s action will provide the Department of Health and Welfare authority to distribute year‑two awards and to continue the program with an ongoing appropriation until the statutory sunset, at which time a base reduction will be requested.

Ending: The panel split initially on a full cash transfer but approved both the supplemental and ongoing appropriations to allow the program to pay year‑two awards and continue operations until the program sunsets.